Caterpillar (CAT) 10-K 19 Feb 20 2019 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	1-768
Entity Registrant Name	CATERPILLAR INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-0602744
Entity Address, Address Line One	510 Lake Cook Road,
Entity Address, Address Line Two	Suite 100,
Entity Address, City or Town	Deerfield,
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60015
City Area Code	224
Local Phone Number	551-4000
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float		$ 76.8
Entity Common Stock, Shares Outstanding	550,082,610
Documents Incorporated by Reference	Documents Incorporated by Reference Portions of the documents listed below have been incorporated by reference into the indicated parts of this Form 10-K, as specified in the responses to the item numbers involved. Part III 2020 Annual Meeting Proxy Statement (Proxy Statement) to be filed with the Securities and Exchange Commission (SEC) within 120 days after the end of the fiscal year.
Entity Central Index Key	0000018230
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Common Stock ($1.00 par value)
Entity Information [Line Items]
Title of 12(b) Security	Common Stock ($1.00 par value)
Trading Symbol	CAT
Security Exchange Name	NYSE
9 3/8% Debentures due March 15, 2021
Entity Information [Line Items]
Title of 12(b) Security	9 3/8% Debentures due March 15, 2021
Trading Symbol	CAT21
Security Exchange Name	NYSE
8% Debentures due February 15, 2023
Entity Information [Line Items]
Title of 12(b) Security	8% Debentures due February 15, 2023
Trading Symbol	CAT23
Security Exchange Name	NYSE
5.3% Debentures due September 15, 2035
Entity Information [Line Items]
Title of 12(b) Security	5.3% Debentures due September 15, 2035
Trading Symbol	CAT35
Security Exchange Name	NYSE

Consolidated Results of Operati

Consolidated Results of Operations - USD ($) shares in Millions, $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Sales and revenues:
Sales and revenues		$ 53,800	$ 54,722	$ 45,462
Cost of goods sold		36,630	36,997	31,260
Operating costs:
Selling, general and administrative expenses		5,162	5,478	4,999
Research and development expenses		1,693	1,850	1,842
Interest expense of Financial Products		754	722	646
Goodwill impairment charge		0	0	0
Other operating (income) expenses		1,271	1,382	2,255
Total operating costs		45,510	46,429	41,002
Operating profit		8,290	8,293	4,460
Interest Expense Excluding Financial Products		421	404	531
Other income (expense)		(57)	(67)	153
Consolidated profit before taxes		7,812	7,822	4,082
Provision (benefit) for income taxes		1,746	1,698	3,339
Profit (loss) of consolidated companies		6,066	6,124	743
Equity in profit (loss) of unconsolidated affiliated companies		28	24	16
Profit (loss) of consolidated and affiliated companies		6,094	6,148	759
Less: Profit (loss) attributable to noncontrolling interests		1	1	5
Profit (loss)	[1]	$ 6,093	$ 6,147	$ 754
Profit (loss) per common share (in dollars per share)		$ 10.85	$ 10.39	$ 1.27
Profit (loss) per common share - diluted (in dollars per share)	[2]	$ 10.74	$ 10.26	$ 1.26
Weighted-average common shares outstanding (millions)
Basic (in shares)		561.6	591.4	591.8
Diluted (in shares)	[2]	567.5	599.4	599.3
Machinery, Energy & Transportation
Sales and revenues:
Sales and revenues		$ 50,755	$ 51,822	$ 42,676
Financial Products
Sales and revenues:
Sales and revenues		$ 3,045	$ 2,900	$ 2,786
[1]	Profit attributable to common shareholders.
[2]	Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method.

Consolidated Comprehensive Inco

Consolidated Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Profit (loss) of consolidated and affiliated companies	$ 6,094	$ 6,148	$ 759
Other comprehensive income (loss), Net of Tax:
Foreign currency translation, net of tax (provision)/benefit of: 2019 - $(5); 2018 - $(24); 2017 - $96	16	(396)	765
Pension and other postretirement benefits:
Current year prior service credit (cost), net of tax (provision)/benefit of: 2019 - $0; 2018 - $(6); 2017 - $(26)	(4)	(6)	48
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2019 -$10; 2018 - $8; 2017 - $9	(30)	(28)	(16)
Derivative financial instruments:
Gains (losses) deferred, net of tax (provision)/benefit of: 2019 -$(14); 2018 - $(19); 2017 - $2	43	61	(3)
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2019 -$15; 2018 - $31; 2017 - $(44)	51	100	(77)
Available-for-sale securities:
Gains (losses) deferred, net of tax (provision)/benefit of: 2019 -$(10); 2018 - $3; 2017 - $(23)	35	(12)	41
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2019 -$0; 2018 - $0; 2017 - $35	0	0	(65)
Total other comprehensive income (loss), net of tax	9	(481)	847
Comprehensive income (loss)	6,103	5,667	1,606
Less: comprehensive income attributable to the noncontrolling interests	1	1	5
Comprehensive income (loss) attributable to shareholders	$ 6,102	$ 5,666	$ 1,601

Consolidated Comprehensive In_2

Consolidated Comprehensive Income (Parenthetical) (Parentheticals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax (provision)/benefit	$ (5)	$ (24)	$ 96
Pension and other postretirement benefits, Current year prior service credit (cost), tax (provision)/benefit	0	(6)	(26)
Pension and other postretirement benefits, Amortization of prior service (credit) cost, tax (provision)/benefit	10	8	9
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax	(14)	(19)	2
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	15	31	(44)
Available-for-sale securities, Gains (losses) deferred, tax (provision)/benefit	(10)	3	(23)
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit	$ 0	$ 0	$ 35

Consolidated Financial Position

Consolidated Financial Position - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and short-term investments	$ 8,284	$ 7,857
Receivables - trade and other	8,568	8,802
Receivables - finance	9,336	8,650
Prepaid Expense and Other Assets, Current	1,739	1,765
Inventories	11,266	11,529
Total current assets	39,193	38,603
Property, Plant and Equipment, Net	12,904	13,574
Long-term receivables - trade and other	1,193	1,161
Long-term receivables - finance	12,651	13,286
Noncurrent deferred and refundable income taxes	1,411	1,439
Intangible assets	1,565	1,897
Goodwill	6,196	6,217
Other assets	3,340	2,332
Total assets	78,453	78,509
Short-term borrowings:
Machinery, Energy & Transportation	5	0
Financial Products	5,161	5,723
Accounts payable	5,957	7,051
Accrued expenses	3,750	3,573
Accrued wages, salaries and employee benefits	1,629	2,384
Customer advances	1,187	1,243
Dividends payable	567	495
Other current liabilities	2,155	1,919
Long-term debt due within one year:
Machinery, Energy & Transportation	16	10
Financial Products	6,194	5,820
Total current liabilities	26,621	28,218
Long-term debt due after one year:
Machinery, Energy & Transportation	9,141	8,005
Financial Products	17,140	16,995
Liability for postemployment benefits	6,599	7,455
Other liabilities	4,323	3,756
Total liabilities	63,824	64,429
Shareholders' equity
Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (2019 and 2018 – 814,894,624 shares) at paid-in amount	5,935	5,827
Treasury stock: (2019 - 264,812,014 shares; and 2018 – 239,351,886 shares) at cost	(24,217)	(20,531)
Profit employed in the business	34,437	30,427
Accumulated other comprehensive income (loss)	(1,567)	(1,684)
Noncontrolling interests	41	41
Total stockholders' equity	14,629	14,080
Total liabilities and stockholders' equity	$ 78,453	$ 78,509

Consolidated Financial Positi_2

Consolidated Financial Position (Parenthetical) (Parentheticals) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
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	239,351,886	217,268,852

Changes in Consolidated Shareho

Changes in Consolidated Shareholders' Equity - USD ($) $ in Millions		Total	Common Stock	Treasury stock	Profit employed in the business	Accumulated other comprehensive income (loss)	Noncontrolling interests
Dividends per share declared		$ 3.11
Balance at Dec. 31, 2016		$ 13,228	$ 5,277	$ (17,478)	$ 27,392	$ (2,039)	$ 76
Increase (Decrease) in Stockholders' Equity
Profit (loss) of consolidated and affiliated companies		759	0	0	754	0	5
Foreign currency translation, net of tax		765	0	0	0	765	0
Pension and other postretirement benefits, net of tax		32	0	0	0	32	0
Derivative financial instruments, net of tax		74	0	0	0	74	0
Available-for-sale securities, net of tax		(24)	0	0	0	(24)	0
Change in ownership from noncontrolling interests		1	4	0	0	0	(3)
Dividends declared		(1,845)	0	0	(1,845)	0	0
Distribution to noncontrolling interests		(9)	0	0	0	0	(9)
Common shares issued from treasury stock for stock-based compensation: 5,126,379, 5,590,641, and 11,139,748 for the years ended December 31, 2019, 2018 and 2017 respectively		566	93	473	0	0	0
Stock-based compensation expense		206	206	0	0	0	0
Other		13	(13)	0	0	0	0
Balance at Dec. 31, 2017		13,766	5,593	(17,005)	26,301	(1,192)	69
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Revenue recognition		(12)	0	0	(12)	0	0
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Tax accounting for intra-entity asset transfers		(35)	0	0	(35)	0	0
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Recognition and measurement of financial assets and liabilities		0	0	0	11	(11)	0
Balance at Jan. 01, 2018		$ 13,719	5,593	(17,005)	26,265	(1,203)	69
Dividends per share declared		$ 3.36
Balance at Dec. 31, 2017		$ 13,766	5,593	(17,005)	26,301	(1,192)	69
Increase (Decrease) in Stockholders' Equity
Profit (loss) of consolidated and affiliated companies		6,148	0	0	6,147	0	1
Foreign currency translation, net of tax		(396)	0	0	0	(396)	0
Pension and other postretirement benefits, net of tax		(34)	0	0	0	(34)	0
Derivative financial instruments, net of tax		(39)	0	0	0	(39)	0
Available-for-sale securities, net of tax		(12)	0	0	0	(12)	0
Change in ownership from noncontrolling interests		(53)	(25)	0	0	0	(28)
Dividends declared		(1,985)	0	0	(1,985)	0	0
Distribution to noncontrolling interests		(1)	0	0	0	0	(1)
Common shares issued from treasury stock for stock-based compensation: 5,126,379, 5,590,641, and 11,139,748 for the years ended December 31, 2019, 2018 and 2017 respectively		313	41	272	0	0	0
Stock-based compensation expense		197	197	0	0	0	0
Common shares repurchased: 30,586, 507, 27,673,675 and 0 shares for years ended December 31, 2019, 2018 and 2017, respectively	[1]	(3,798)	0	(3,798)	0	0	0
Other		21	(21)	0	0	0	0
Balance at Dec. 31, 2018		14,080	5,827	(20,531)	30,427	(1,684)	41
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Lease accounting	[2]	235	0	0	235	0	0
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Reclassification of certain tax effects from accumulated other comprehensive income	[2]	0	0	0	(108)	108	0
Balance at Jan. 01, 2019		$ 14,315	5,827	(20,531)	30,554	(1,576)	41
Dividends per share declared		$ 3.95
Balance at Dec. 31, 2018		$ 14,080	5,827	(20,531)	30,427	(1,684)	41
Increase (Decrease) in Stockholders' Equity
Profit (loss) of consolidated and affiliated companies		6,094	0	0	6,093	0	1
Foreign currency translation, net of tax		16	0	0	0	16	0
Pension and other postretirement benefits, net of tax		(34)	0	0	0	(34)	0
Derivative financial instruments, net of tax		(8)	0	0	0	(8)	0
Available-for-sale securities, net of tax		35	0	0	0	35	0
Dividends declared	[3]	(2,210)	0	0	(2,210)	0	0
Distribution to noncontrolling interests		(3)	0	0	0	0	(3)
Common shares issued from treasury stock for stock-based compensation: 5,126,379, 5,590,641, and 11,139,748 for the years ended December 31, 2019, 2018 and 2017 respectively		238	(4)	242	0	0	0
Stock-based compensation expense		205	205	0	0	0	0
Common shares repurchased: 30,586, 507, 27,673,675 and 0 shares for years ended December 31, 2019, 2018 and 2017, respectively	[1]	(3,928)	0	(3,928)	0	0	0
Other		91	(93)	0	0	0	2
Balance at Dec. 31, 2019		$ 14,629	$ 5,935	$ (24,217)	$ 34,437	$ (1,567)	$ 41
[1]	See Note 16 regarding shares repurchased.
[2]	See Note 1J regarding new accounting guidance.
[3]	Dividends per share of common stock of $3.95 , $3.36 and $3.11 were declared in the years ended December 31, 2019, 2018 and 2017, respectively.

Changes in Consolidated Share_2

Changes in Consolidated Shareholders' Equity (Parenthetical) (Parentheticals) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Common shares issued from treasury stock for stock-based compensation (in shares)	5,126,379	5,590,641	11,139,748
Common shares repurchased (in shares)	30,586,507	27,673,675	0

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flow from operating activities:
Profit (loss) of consolidated and affiliated companies	$ 6,094	$ 6,148	$ 759
Adjustments for non-cash items:
Depreciation and amortization	2,577	2,766	2,877
Actuarial (gain) loss on pension and postretirement benefits	468	495	301
Provision (benefit) for deferred income taxes	28	220	1,213
Other	675	1,006	750
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other	171	(1,619)	(1,151)
Inventories	274	(1,579)	(1,295)
Accounts payable	(1,025)	709	1,478
Accrued expenses	172	101	175
Accrued wages, salaries and employee benefits	(757)	(162)	1,187
Customer advances	(10)	(183)	(8)
Other assets - net	(93)	41	(192)
Other liabilities - net	(1,662)	(1,385)	(388)
Net Cash Provided by (Used in) Operating Activities	6,912	6,558	5,706
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others	(1,056)	(1,276)	(898)
Expenditures for equipment leased to others	(1,613)	(1,640)	(1,438)
Proceeds from disposals of leased assets and property, plant and equipment	1,153	936	1,164
Additions to finance receivables	(12,777)	(12,183)	(11,953)
Collections of finance receivables	12,183	10,901	12,018
Proceeds from sale of finance receivables	235	477	127
Investments and acquisitions (net of cash acquired)	(47)	(392)	(59)
Proceeds from sale of businesses and investments (net of cash sold)	41	16	100
Proceeds from sale of securities	529	442	932
Investments in securities	(552)	(506)	(1,048)
Other - net	(24)	13	89
Net Cash Provided by (Used in) Investing Activities	(1,928)	(3,212)	(966)
Cash flow from financing activities:
Dividends paid	(2,132)	(1,951)	(1,831)
Common stock issued, including treasury shares reissued	238	313	566
Common shares repurchased	(4,047)	(3,798)	0
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	1,479	57	361
Financial Products	8,362	8,850	8,702
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(12)	(7)	(1,465)
Financial Products	(8,285)	(7,822)	(6,923)
Short-term borrowings - net (original maturities three months or less)	(138)	762	(3,058)
Other - net	(3)	(54)	(9)
Net Cash Provided by (Used in) Financing Activities	(4,538)	(3,650)	(3,657)
Effect of exchange rate changes on cash	(44)	(126)	38
Increase (decrease) in cash and short-term investments and restricted cash	402	(430)	1,121
Cash and short- term investments and restricted cash at beginning of period	7,890	8,320	7,199
Cash and short- term investments and restricted cash at end of period	$ 8,292	$ 7,890	$ 8,320

Operations and summary of signi

Operations and summary of significant accounting policies	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operations and summary of significant accounting policies	Operations and summary of significant accounting policies A. Nature of operations Information in our financial statements and related commentary are presented in the following categories: Machinery, Energy & Transportation (ME&T) – Represents the aggregate total of Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment 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 Insurance Holdings Inc. (Insurance Services) and their respective subsidiaries. Our products are sold primarily under the brands “Caterpillar,” “CAT,” design versions of “CAT” and “Caterpillar,” “EMD,” “FG Wilson,” “MaK,” “MWM,” “Perkins,” “Progress Rail,” “SEM” and “Solar Turbines”. We conduct operations in our ME&T lines of business under highly competitive conditions, including intense price competition. We place great emphasis on the high quality and performance of our products and our dealers’ service support. Although no one competitor is believed to produce all of the same types of equipment that we do, there are numerous companies, large and small, which compete with us in the sale of each of our products. Our machines are distributed principally through a worldwide organization of dealers (dealer network), 46 located in the United States and 119 located outside the United States, serving 191 countries. Reciprocating engines are sold principally through the dealer network and to other manufacturers for use in products. Some of the reciprocating engines manufactured by our subsidiary Perkins Engines Company Limited, are also sold through its worldwide network of 67 distributors covering 178 countries. The FG Wilson branded electric power generation systems primarily manufactured by our subsidiary Caterpillar Northern Ireland Limited are sold through its worldwide network of 150 distributors covering 109 countries. Some of the large, medium speed reciprocating engines are also sold under the MaK brand through a worldwide network of 20 distributors covering 130 countries. Our dealers do not deal exclusively with our products; however, in most cases sales and servicing of our products are the dealers’ principal business. Some products, primarily turbines and locomotives, are sold directly to end customers through sales forces employed by the company. At times, these employees are assisted by independent sales representatives. The Financial Products line of business also conducts operations under highly competitive conditions. Financing for users of Caterpillar products is available through a variety of competitive sources, principally commercial banks and finance and leasing companies. We offer various financing plans designed to increase the opportunity for sales of our products and generate financing income for our company. A significant portion of Financial Products activity is conducted in North America, with additional offices in Latin America, Asia/Pacific, Europe, Africa and the Middle East. B. Basis of presentation The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method. We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE. We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the economic performance of each entity. Our maximum exposure to loss from these VIEs for which we are not the primary beneficiary was $133 million and $131 million as of December 31, 2019 and 2018 , respectively. 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. Shipping and handling costs are included in Cost of goods sold in Statement 1. Other operating (income) expenses primarily include Cat Financial’s depreciation of equipment leased to others, Insurance Services’ underwriting expenses, (gains) losses on disposal of long-lived assets, long-lived asset impairment charges, legal settlements and accruals, contract termination costs and employee separation charges. Prepaid expenses and other current assets in Statement 3 primarily include prepaid insurance, contract assets, right of return assets, prepaid and refundable income taxes, assets held for sale, core to be returned for remanufacturing, restricted cash and other short-term investments. C. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent and 65 percent of total inventories at December 31, 2019 and 2018 , respectively. If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,086 million and $2,009 million higher than reported at December 31, 2019 and 2018 , respectively. D. Depreciation and amortization Depreciation of plant and equipment is computed principally using accelerated methods. Depreciation on equipment leased to others, primarily for Financial Products, is computed using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2019 , 2018 and 2017 , Cat Financial depreciation on equipment leased to others was $813 million , $819 million and $810 million , respectively, and was included in Other operating (income) expenses in Statement 1. In 2019 , 2018 and 2017 , consolidated depreciation expense was $2,253 million , $2,435 million and $2,555 million , respectively. Amortization of purchased finite-lived intangibles is computed principally using the straight-line method, generally not to exceed a period of 20 years . E. Foreign currency translation The functional currency for most of our ME&T consolidated companies is the U.S. dollar. The functional currency for most of our Financial Products and affiliates accounted for under the equity method is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in Statement 1. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income (loss) in Statement 3. F. Derivative financial instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts and commodity forward and option contracts. All derivatives are recorded at fair value. See Note 4 for more information. G. Income taxes The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 6 for further discussion. H. Goodwill For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances make it more likely than not that an impairment may have occurred. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition. Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units. When changes occur in the composition of our operating segments or reporting units, goodwill is reassigned to the affected reporting units based on their relative fair values. We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis. Goodwill is reviewed for impairment utilizing either a qualitative assessment or a quantitative goodwill impairment test. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the quantitative goodwill impairment test, we compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, the difference would be recognized as an impairment loss. See Note 10 for further details. I. Estimates in financial statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets; fair values for goodwill impairment tests; warranty liability and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes. J. New accounting guidance Adoption of new accounting standards Lease accounting - (Accounting Standards Update (ASU) 2016-02) - In February 2016, the Financial Accounting Standards Board (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 substantially all leases. The new guidance continues 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 is substantially equivalent to prior lease accounting guidance. The new guidance was effective January 1, 2019 and was applied using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of January 1, 2019. The prior period comparative information has not been recast and continues to be reported under the accounting guidance in effect for those periods. The new guidance provides a number of optional practical expedients in transition. We elected the “package of practical expedients,” which allows us not to reassess under the new guidance our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight practical expedient. In addition, the new guidance provides practical expedients for an entity’s ongoing lessee accounting. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected not to separate lease and non-lease components. We have elected the short-term lease recognition exemption for all leases that qualify, which means we have not recognized right-of-use assets or lease liabilities for these leases with a term of twelve months or less. The most significant effects of adoption relate to the recognition of right-of-use assets and lease liabilities on our balance sheet for operating leases and providing new disclosures about our leasing activities. In addition, we derecognized existing assets and debt obligations for a sale-leaseback transaction that qualified for sale accounting under the new guidance. The gain associated with this change in accounting was recognized through opening retained earnings as of January 1, 2019. The adoption did not have a material impact on our financial statements. In March 2019, the FASB issued Leases - Codification improvements (ASU 2019-01) which amended the new leasing guidance. Under these amendments, lessors that are not manufacturers or dealers will use their cost, less any discounts that may apply, as the fair value of the underlying asset, and lessors within the scope of Financial Services-Depository and Lending guidance will present all principal payments received under leases within investment activities on the statement of cash flows. We adopted the new guidance effective January 1, 2019, and the adoption did not have a material impact to our financial statements. See Note 20 for additional information. The cumulative effect of initially applying the new lease guidance to our consolidated financial statements on January 1, 2019 was as follows: Consolidated Statement of Financial Position (Millions of dollars) Balance as of December 31, 2018 Cumulative Impact from Adopting New Lease Guidance Balance as of January 1, 2019 Assets Prepaid expenses and other current assets $ 1,765 $ (17 ) $ 1,748 Property, plant and equipment - net $ 13,574 $ (26 ) $ 13,548 Noncurrent deferred and refundable income taxes $ 1,439 $ (77 ) $ 1,362 Other assets $ 2,332 $ 713 $ 3,045 Liabilities Accrued expenses $ 3,573 $ (27 ) $ 3,546 Other current liabilities $ 1,919 $ 209 $ 2,128 Long-term debt due after one year Machinery, Energy & Transportation $ 8,005 $ (362 ) $ 7,643 Other liabilities $ 3,756 $ 538 $ 4,294 Shareholders ’ equity Profit employed in the business $ 30,427 $ 235 $ 30,662 We adopted the following ASUs effective January 1, 2019, none of which had a material impact on our financial statements: ASU Description 2017-08 Premium amortization on purchased callable debt securities 2017-12 Derivatives and hedging - Targeted improvements 2018-02 Reclassification of certain tax effects from accumulated other comprehensive income Accounting standards issued but not yet adopted Credit losses (ASU 2016-13) – 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 was effective January 1, 2020. We do not expect the adoption to have a material impact on our financial statements. We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and either determined to be not applicable or not expected to have a material impact on our financial statements.

Sales and revenue recognition S

Sales and revenue recognition Sales and revenue recognition (Notes)	12 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	Sales and revenue recognition A. Sales of Machinery, Energy & Transportation Sales of ME&T are recognized when all the following criteria are satisfied: (i) a contract with an independently owned and operated dealer or an end user exists which has commercial substance; (ii) it is probable we will collect the amount charged to the dealer or end user; and (iii) we have completed our performance obligation whereby the dealer or end user has obtained control of the product. A contract with commercial substance exists once we receive and accept a purchase order under a dealer sales agreement, or once we enter into a contract with an end user. If collectibility is not probable, the sale is deferred and not recognized until collection is probable or payment is received. Control of our products typically transfers when title and risk of ownership of the product has transferred to the dealer or end user. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when the product is shipped. Products that are exported from a country for sale typically transfer title and risk of ownership at the border of the destination country. Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, used engines and related components (core) are inspected, cleaned and remanufactured. In connection with the sale of our remanufactured product to dealers, we collect a deposit that is repaid if the dealer returns an acceptable core within a specified time period. Caterpillar owns and has title to the cores when they are returned from dealers. The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and end users. Revenue is recognized pursuant to the same transfer of control criteria as ME&T sales noted above. At the time of sale, the deposit is recognized in Other current liabilities in Statement 3, and the core to be returned is recognized as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with usable cores). Upon receipt of an acceptable core, we repay the deposit and relieve the liability. The returned core asset is then transferred into inventory. In the event that the deposit is forfeited (i.e., upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. Generally, the cost of these discounts is estimated for each product by model by geographic region based on historical experience and known changes in merchandising programs. The cost of these discounts is reported as a reduction to the transaction price when the product sale is recognized. A corresponding post-sale discount reserve is accrued in Statement 3, which represents discounts we expect to pay on units sold. If discounts paid differ from those estimated, the difference is reported as a change in the transaction price. Except for replacement parts, no right of return exists on the sale of our products. We estimate replacement part returns based on historical experience and recognize a parts return asset in Prepaid expenses and other current assets in Statement 3, which represents our right to recover replacement parts we expect will be returned. We also recognize a refund liability in Other current liabilities in Statement 3 for the refund we expect to pay for returned parts. If actual replacement part returns differ from those estimated, the difference in the estimated replacement part return asset and refund liability is recognized in Cost of goods sold and Sales, respectively. Our standard dealer invoice terms are established by marketing region. Our invoice terms for end user sales are established by the responsible business unit. Payments from dealers are due shortly after the time of sale. When a sale is made to a dealer, the dealer is responsible for payment even if the product is not sold to an end user. Dealers and end users must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. In addition, Cat Financial provides wholesale inventory financing for a dealer’s purchase of inventory. Wholesale inventory receivables have varying payment terms and are included in Receivables – trade and other and Long-term receivables – trade and other in Statement 3. See Note 7 for further information. Trade receivables from dealers and end users were $7,648 million , $7,743 million and $6,399 million as of December 31, 2019 , December 31, 2018 and January 1, 2018 , respectively, and are recognized in Receivables – trade and other in Statement 3. Long-term trade receivables from dealers and end users were $693 million , $674 million and $639 million as of December 31, 2019 , December 31, 2018 and January 1, 2018 , respectively, and are recognized in Long-term receivables – trade and other in Statement 3. We establish a bad debt allowance for ME&T receivables when it becomes probable that the receivable will not be collected. Our allowance for bad debts is not significant. We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in Statement 3. Contract liabilities were $1,654 million , $1,680 million and $1,868 million as of December 31, 2019 , December 31, 2018 and January 1, 2018 , respectively. We reduce the contract liability when revenue is recognized. During 2019 , we recognized $1,171 million of revenue that was recorded as a contract liability at the beginning of 2019 . During 2018 , we recognized $1,294 million of revenue that was recorded as a contract liability at the beginning of 2018 . We have elected the practical expedient to not adjust the amount of revenue to be recognized under a contract with a dealer or end user for the effects of time value of money when the timing difference between receipt of payment and recognition of revenue is less than one year. As of December 31, 2019 , we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products. The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $6.2 billion , of which $2.4 billion is expected to be completed and revenue recognized in the twelve months following December 31, 2019 . We have elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts. Sales and other related taxes are excluded from the transaction price. Shipping and handling costs associated with outbound freight after control over a product has transferred are accounted for as a fulfillment cost and are included in Cost of goods sold. We provide a standard manufacturer’s warranty of our products at no additional cost. At the time a sale is recognized, we record estimated future warranty costs. See Note 21 for further discussion of our product warranty liabilities. See Note 23 for further disaggregated sales and revenues information. B. Revenues of Financial Products Revenues of Financial Products are generated primarily from finance revenue on finance receivables and rental payments on operating leases. Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and rental revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed, and previously suspended income is recognized, when the account becomes current and collection of remaining amounts is considered probable. See Note 7 for more information.

Stock-based compensation

Stock-based compensation	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Stock-based compensation	Stock-based compensation Our stock-based compensation plans primarily provide for the granting of stock options, stock-settled stock appreciation rights (SARs), restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) to Officers and other key employees, as well as non-employee Directors. Stock options permit a holder to buy Caterpillar stock at the stock’s price when the option was granted. SARs permit a holder the right to receive the value in shares of the appreciation in Caterpillar stock that occurred from the date the right was granted up to the date of exercise. RSUs are agreements to issue shares of Caterpillar stock at the time of vesting. PRSUs are similar to RSUs and include performance conditions in the vesting terms of the award. Our long-standing practices and policies specify that all stock-based compensation awards are approved by the Compensation Committee (the Committee) of the Board of Directors. The award approval process specifies the grant date, value and terms of the award. The same terms and conditions are consistently applied to all employee grants, including Officers. The Committee approves all individual Officer grants. The number of stock-based compensation award units included in an individual’s award is determined based on the methodology approved by the Committee. The exercise price methodology approved by the Committee is the closing price of the Company stock on the date of the grant. In June of 2014, shareholders approved the Caterpillar Inc. 2014 Long-Term Incentive Plan (the Plan) under which all new stock-based compensation awards are granted. In June of 2017, the Plan was amended and restated. The Plan initially provided that up to 38,800,000 Common Shares would be reserved for future issuance under the Plan, subject to adjustment in certain events. Subsequent to the shareholder approval of the amendment and restatement of the Plan, an additional 36,000,000 Common Shares became available for all awards under the Plan. Common stock issued from Treasury stock under the plans totaled 5,126,379 for 2019 , 5,590,641 for 2018 and 11,139,748 for 2017 . The total number of shares authorized for equity awards under the amended and restated Caterpillar Inc. 2014 Long-Term Incentive Plan is 74,800,000 , of which 40,754,720 shares remained available for issuance as of December 31, 2019. Stock option and RSU awards generally vest according to a three -year graded vesting schedule. One-third of the award will become vested on the first anniversary of the grant date, one-third of the award will become vested on the second anniversary of the grant date and one-third of the award will become vested on the third anniversary of the grant date. PRSU awards generally have a three -year performance period and cliff vest at the end of the period based upon achievement of performance targets established at the time of grant. Upon separation from service, if the participant is 55 years of age or older with more than five years of service, the participant meets the criteria for a “Long Service Separation.” Award terms for stock option and RSU grants 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 grants was 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. For PRSU awards granted in 2018 and 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 2018 and 2017. Compensation expense for the 2018 and 2017 PRSU grants is being recognized on a straight-line basis over the three-year performance period for all participants. Award terms for the 2019 PRSU grant allowed for continued vesting upon achievement of the performance target 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 the 2019 PRSU grant with respect to employees who have met the criteria for a “Long Service Separation” is recognized over the period from the grant date to the end 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. At grant, option awards and SARs have a term life of ten years . For awards granted prior to 2016, if the “Long Service Separation” criteria are met, the vested options/SARs have a life that is the lesser of ten years from the original grant date or five years from the separation date. For awards granted beginning in 2016, the vested options have a life equal to ten years from the original grant date. Accounting guidance on share-based payments requires companies to estimate the fair value of options/SARs on the date of grant using an option-pricing model. The fair value of our option/SAR grants was estimated using a lattice-based option-pricing model. The lattice-based option-pricing model considers a range of assumptions related to volatility, risk-free interest rate and historical employee behavior. Expected volatility was based on historical Caterpillar stock price movement and current implied volatilities from traded options on Caterpillar stock. The risk-free interest rate was based on U.S. Treasury security yields at the time of grant. The weighted-average dividend yield was based on historical information. The expected life was determined from the lattice-based model. The lattice-based model incorporated exercise and post vesting forfeiture assumptions based on analysis of historical data. The following table provides the assumptions used in determining the fair value of the Option awards for the years ended December 31, 2019 , 2018 and 2017 , respectively. Grant Year 2019 2018 2017 Weighted-average dividend yield 2.6 % 2.7 % 3.4 % Weighted-average volatility 29.1 % 30.2 % 29.2 % Range of volatilities 25.1-38.7% 21.5-33.0% 22.1-33.0% Range of risk-free interest rates 2.48-2.68% 2.02-2.87% 0.81-2.35% Weighted-average expected lives 7 years 8 years 8 years Beginning with the 2018 grant, RSU and PRSU awards are credited with dividend equivalent units on each date that a cash dividend is paid to holders of Common Stock. The fair value of the RSU and PRSU awards granted in 2019 and 2018 was determined as the closing stock price on the date of the grant. Prior to 2018, RSU and PRSU awards were not credited with dividend equivalent units and the fair value was determined by reducing the stock price on the date of the grant by the present value of the estimated dividends to be paid during the vesting period. The estimated dividends were based on Caterpillar’s quarterly divided per share at the time of the grant. Please refer to Tables I and II below for additional information on our stock-based compensation awards. TABLE I — Financial Information Related to Stock-based Compensation Stock options / SARs RSUs PRSUs Shares Weighted- Average Exercise Price Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2019 17,841,669 $ 91.93 1,566,070 $ 112.99 735,299 $ 115.18 Granted to officers and key employees 1 1,499,524 $ 138.35 687,294 $ 138.61 359,122 $ 138.67 Exercised (4,808,237 ) $ 83.81 — $ — — $ — Vested — $ — (820,927 ) $ 99.76 (399,811 ) $ 95.66 Forfeited / expired (67,962 ) $ 123.36 (63,234 ) $ 133.39 (24,495 ) $ 125.89 Outstanding at December 31, 2019 14,464,994 $ 99.29 1,369,203 $ 132.88 670,115 $ 144.46 Exercisable at December 31, 2019 11,154,215 $ 89.84 Stock options/SARs outstanding and exercisable as of December 31, 2019: Outstanding Exercisable Exercise Prices Shares Outstanding at 12/31/19 Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Aggregate Intrinsic Value 2 Shares Outstanding at 12/31/19 Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Aggregate Intrinsic Value 2 $57.85-83.00 5,775,829 5.52 $ 78.64 $ 399 5,775,829 5.52 $ 78.64 $ 399 $89.75-96.31 4,680,238 5.38 $ 94.56 249 3,833,786 4.96 $ 94.31 205 $102.13-110.09 1,052,650 1.75 $ 106.48 43 1,052,650 1.75 $ 106.48 43 $138.35-138.51 1,496,071 9.29 $ 138.35 14 5,119 8.71 $ 138.51 — $141.32-151.12 1,460,206 8.30 $ 150.97 — 486,831 8.30 $ 150.97 — 14,464,994 $ 99.29 $ 705 11,154,215 $ 89.84 $ 647 1 No SARs were granted during the year ended December 31, 2019 . 2 The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2019 , for awards with market price greater than the exercise price. Amounts are in millions of dollars. The computations of weighted-average exercise prices and aggregate intrinsic values are not applicable to RSUs or PRSUs since these awards represent an agreement to issue shares of stock at the time of vesting. At December 31, 2019 , there were 1,369,203 outstanding RSUs with a weighted average remaining contractual life of 1.5 years and 670,115 outstanding PRSUs with a weighted-average remaining contractual life of 1.5 years . TABLE II— Additional Stock-based Award Information (Dollars in millions except per share data) 2019 2018 2017 Stock options/SARs activity: Weighted-average fair value per share of stock awards granted $ 40.98 $ 46.09 $ 25.01 Intrinsic value of stock awards exercised $ 264 $ 348 $ 504 Fair value of stock awards vested 1 $ 100 $ 86 $ 191 Cash received from stock awards exercised $ 298 $ 370 $ 629 RSUs activity: Weighted-average fair value per share of stock awards granted $ 138.61 $ 150.58 $ 90.11 Fair value of stock awards vested 2 $ 110 $ 180 $ 189 PRSUs activity: Weighted-average fair value per share of stock awards granted $ 138.67 $ 150.98 $ 86.78 Fair value of stock awards vested 2 $ 59 $ 70 $ 20 1 Based on the grant date fair value. 2 Based on the underlying stock’s closing market price on the vesting date. In accordance with guidance on share-based payments, stock-based compensation expense is based on the grant date fair value and is classified within Cost of goods sold, Selling, general and administrative expenses and Research and development expenses corresponding to the same line item as the cash compensation paid to respective employees, officers and non-employee directors. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for awards with terms that specify cliff or graded vesting and contain only service conditions. Stock-based compensation expense for PRSUs is based on the probable number of shares expected to vest and is recognized primarily on a straight-line basis. Before tax, stock-based compensation expense for 2019 , 2018 and 2017 was $205 million , $197 million and $206 million , respectively, with a corresponding income tax benefit of $35 million , $36 million and $40 million , respectively. The amount of stock-based compensation expense capitalized for the years ended December 31, 2019 , 2018 and 2017 did not have a significant impact on our financial statements. At December 31, 2019 , there was $161 million of total unrecognized compensation cost from stock-based compensation arrangements granted under the plans, which is related to non-vested stock-based awards. The compensation expense is expected to be recognized over a weighted-average period of approximately 1.6 years . We currently use shares in treasury stock to satisfy share award exercises. The cash tax benefits realized from stock awards exercised for 2019 , 2018 and 2017 were $89 million , $103 million and $205 million

Derivative financial instrument

Derivative financial instruments and risk management	12 Months Ended
	Dec. 31, 2019
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 in Statement 3 at their fair value. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow (cash flow hedge) or (3) an undesignated instrument. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in Accumulated other comprehensive income (loss) (AOCI), to the extent effective, in Statement 3 until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments are reported in current earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged on Statement 5. Cash flows from undesignated derivative financial instruments are included in the investing category on Statement 5. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in Statement 3 and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. A. Foreign currency exchange rate risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our ME&T 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 approximately five years . As of December 31, 2019 , the maximum term of these outstanding contracts was approximately 60 months . We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, 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 ME&T foreign currency contracts are undesignated. As of December 31, 2019 , $1 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), are expected to be reclassified to current earnings (Other income (expense) in Statement 1) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option 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. B. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. Our ME&T 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 and duration) of Cat Financial’s debt portfolio with the interest rate profile of our 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 ME&T 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. C. Commodity price risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw materials. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our ME&T operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five -year horizon. All such commodity forward and option contracts are undesignated. The location and fair value of derivative instruments reported in Statement 3 are as follows: Consolidated Statement of Financial Position Location Asset (Liability) Fair Value (Millions of dollars) Years ended December 31, 2019 2018 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 18 $ 16 Machinery, Energy & Transportation Long-term receivables — trade and other 9 — Machinery, Energy & Transportation Accrued expenses (20 ) (26 ) Machinery, Energy & Transportation Other liabilities — (9 ) Financial Products Receivables — trade and other 54 53 Financial Products Long-term receivables — trade and other 13 35 Financial Products Accrued expenses (3 ) (9 ) Interest rate contracts Financial Products Receivables — trade and other — 1 Financial Products Long-term receivables — trade and other 5 3 Financial Products Accrued expenses (25 ) (40 ) $ 51 $ 24 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 1 $ 2 Machinery, Energy & Transportation Accrued expenses — (21 ) Financial Products Receivables — trade and other 7 15 Financial Products Long-term receivables — trade and other 5 5 Financial Products Accrued expenses (22 ) (14 ) Commodity contracts Machinery, Energy & Transportation Receivables — trade and other 4 1 Machinery, Energy & Transportation Accrued expenses (1 ) (31 ) $ (6 ) $ (43 ) The total notional amounts of the derivative instruments are as follows: Years ended December 31, (Millions of dollars) 2019 2018 Machinery, Energy & Transportation $ 2,563 $ 1,834 Financial Products $ 8,931 $ 10,210 The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties. The amounts exchanged by the parties are calculated by reference to the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates or commodity prices. The effect of derivatives designated as hedging instruments on Statement 1 is as follows: Cash Flow Hedges (Millions of dollars) Year ended December 31, 2019 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI Amount of the line items in Statement 1 Foreign exchange contracts Machinery, Energy & Transportation $ 34 Sales of Machinery, Energy & Transportation $ 11 $ 50,755 Cost of goods sold (3 ) 36,630 Financial Products 93 Interest expense of Financial Products 33 754 Other income (expense) 37 (57 ) Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (4 ) 421 Financial Products (70 ) Interest expense of Financial Products (8 ) 754 $ 57 $ 66 Year ended December 31, 2018 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (47 ) Other income (expense) $ (33 ) $ — Financial Products 165 Other income (expense) 148 — Interest expense of Financial Products 19 — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (3 ) — Financial Products (38 ) Interest expense of Financial Products — — $ 80 $ 131 $ — Year ended December 31, 2017 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ 72 Other income (expense) $ (40 ) $ — Financial Products (77 ) Other income (expense) (81 ) — Interest expense of Financial Products 6 — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (9 ) — Financial Products — Interest expense of Financial Products 3 — $ (5 ) $ (121 ) $ — The effect of derivatives not designated as hedging instruments on Statement 1 is as follows: Years ended December 31, (Millions of dollars) Classification of Gains (Losses) 2019 2018 2017 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 13 $ (54 ) $ 72 Financial Products Other income (expense) (37 ) 19 9 Commodity contracts Machinery, Energy & Transportation Other income (expense) 18 (39 ) 30 $ (6 ) $ (74 ) $ 111 We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within ME&T and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or of our company under the master netting agreements. As of December 31, 2019 and 2018 , no cash collateral was received or pledged under the master netting agreements. The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event is as follows: December 31, 2019 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 $ 32 $ — $ 32 $ (13 ) $ — $ 19 Financial Products 84 — 84 (21 ) — 63 Total $ 116 $ — $ 116 $ (34 ) $ — $ 82 December 31, 2019 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 $ (21 ) $ — $ (21 ) $ 13 $ — $ (8 ) Financial Products (50 ) — (50 ) 21 — (29 ) Total $ (71 ) $ — $ (71 ) $ 34 $ — $ (37 ) December 31, 2018 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 $ 19 $ — $ 19 $ (19 ) $ — $ — Financial Products 112 — 112 (34 ) — 78 Total $ 131 $ — $ 131 $ (53 ) $ — $ 78 December 31, 2018 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 $ (87 ) $ — $ (87 ) $ 19 $ — $ (68 ) Financial Products (63 ) — (63 ) 34 — (29 ) Total $ (150 ) $ — $ (150 ) $ 53 $ — $ (97 )

Other income (expense)

Other income (expense)	12 Months Ended
	Dec. 31, 2019
Other Income and Expenses [Abstract]
Other income (expense)	5. Other income (expense) Years ended December 31, (Millions of dollars) 2019 2018 2017 Investment and interest income $ 202 $ 195 $ 122 Foreign exchange gains (losses) 1 (67 ) (201 ) (213 ) License fee income 121 125 100 Gains (losses) on sale of securities and affiliated companies 30 4 187 2 Net periodic pension and OPEB income (cost), excluding service cost (363 ) (118 ) (54 ) Gains (losses) on equity securities measured at fair value 3 35 (33 ) — Miscellaneous income (loss) (15 ) (39 ) 11 Total $ (57 ) $ (67 ) $ 153 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 4 for further details. 2 Includes pretax gain of $85 million related to the sale of Caterpillar ’ s equity interest in Iron Planet Holdings Inc. 3 Beginning January 1, 2018, the unrealized gains and losses arising from the revaluation of equity securities are included in Other income (expense) in Statement 1.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income taxes	6. Income taxes Reconciliation of the U.S. federal statutory rate to effective rate: Years ended December 31, (Millions of dollars) 2019 2018 2017 Taxes at U.S. statutory rate $ 1,641 21.0 % $ 1,643 21.0 % $ 1,429 35.0 % (Decreases) increases resulting from: Non-U.S. subsidiaries taxed at other than the U.S. rate 365 4.7 % 282 3.6 % (282 ) (6.9 )% State and local taxes, net of federal 1 59 0.8 % 22 0.3 % 27 0.7 % Interest and penalties, net of tax 34 0.4 % 33 0.4 % 28 0.7 % U.S. tax incentives (149 ) (1.9 )% (106 ) (1.3 )% (52 ) (1.3 )% Net excess tax benefits from stock-based compensation (41 ) (0.5 )% (56 ) (0.7 )% (64 ) (1.6 )% Mandatory deemed repatriation of non-U.S. earnings (178 ) (2.3 )% 50 0.7 % 1,775 43.5 % U.S. deferred tax rate change — — % (154 ) (2.0 )% 596 14.6 % Valuation allowances — — % (29 ) (0.4 )% (111 ) (2.7 )% Other—net 15 0.2 % 13 0.1 % (7 ) (0.2 )% Provision (benefit) for income taxes $ 1,746 22.4 % $ 1,698 21.7 % $ 3,339 81.8 % 1 Excludes amounts included in valuation allowances and mandatory deemed repatriation of non-U.S. earnings. Included in the line item above labeled “Non-U.S. subsidiaries taxed at other than the U.S. rate” are the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances and other permanent differences between tax and U.S. GAAP results. Although not individually significant by jurisdiction, pre-tax permanent differences due to nondeductible net foreign exchange gains/losses of non-U.S. subsidiaries were approximately $36 million of net losses in 2019 , $180 million of net losses in 2018 and $160 million of net gains in 2017 . Included in the line item above labeled “Valuation allowances” are decreases in the valuation allowance for U.S. state deferred tax assets resulting in a $63 million non-cash benefit in 2018, net of federal deferred tax adjustment at 21 percent , compared to a $111 million non-cash benefit in 2017, net of federal deferred tax adjustment at 35 percent . The primary driver of the decreases in the U.S. state valuation allowance was improved U.S. GAAP profits expected to recur in certain state jurisdictions. Also included in 2018 was a decrease in the valuation allowance for a non-U.S. subsidiary of $25 million offset by a charge of $59 million to correct for an error which resulted in an understatement of the valuation allowance offsetting deferred tax assets for prior years. This error had the effect of overstating profit by $17 million for the year ended December 31, 2017. Management has concluded that the error was not material to any period presented. On December 22, 2017, U.S. tax legislation was enacted containing a broad range of tax reform provisions including a corporate tax rate reduction and changes in the U.S. taxation of non-U.S. earnings. In 2018, measurement period adjustments of $104 million reduced the provisionally estimated charge of $ 2.371 billion recognized during the fourth quarter of 2017. A $154 million benefit revised the estimated impact of the write-down of U.S. net deferred tax assets to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent . This benefit primarily related to the decision to make an additional discretionary pension contribution of $1.0 billion to U.S. pension plans in 2018 which was treated as deductible on the 2017 U.S. tax return. A $50 million charge revised the estimated cost of a mandatory deemed repatriation of non-U.S. earnings, including changes in the deferred tax liability related to the amount of earnings considered not indefinitely reinvested as well as the amount of unrecognized tax benefits and state tax liabilities associated with these tax positions. During 2019, a $178 million tax benefit was recorded to adjust previously unrecognized tax benefits as a result of receipt of additional guidance related to the calculation of the mandatory deemed repatriation of non-U.S. earnings. As a result of U.S. tax reform legislation, distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. Undistributed profits of non-U.S. subsidiaries of approximately $14 billion are considered indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible primarily due to our legal entity structure and the complexity of U.S. and local tax laws. The components of profit (loss) before taxes were: Years ended December 31, (Millions of dollars) 2019 2018 2017 U.S. $ 2,888 $ 2,131 $ 240 Non-U.S. 4,924 5,691 3,842 $ 7,812 $ 7,822 $ 4,082 Profit before taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above. The components of the provision (benefit) for income taxes were: Years ended December 31, (Millions of dollars) 2019 2018 2017 Current tax provision (benefit): U.S. 1 $ 405 $ 179 $ 963 Non-U.S. 1,261 1,291 1,124 State (U.S.) 52 8 39 1,718 1,478 2,126 Deferred tax provision (benefit): U.S. 1 17 298 1,385 Non-U.S. (7 ) 4 (17 ) State (U.S.) 18 (82 ) (155 ) 28 220 1,213 Total provision (benefit) for income taxes $ 1,746 $ 1,698 $ 3,339 1 Includes U.S. taxes related to non-U.S. earnings. We account for U.S. taxes on global intangible low-taxed income as a period cost. We paid net income tax and related interest of $1,847 million , $1,429 million and $1,404 million in 2019 , 2018 and 2017 , respectively. Accounting for income taxes under U.S. GAAP requires that individual tax-paying entities of the company offset all deferred tax liabilities and assets within each particular tax jurisdiction and present them as a noncurrent deferred tax liability or asset in the Consolidated Financial Position. Amounts in different tax jurisdictions cannot be offset against each other. The amount of deferred income taxes at December 31, included on the following lines in Statement 3, are as follows: December 31, (Millions of dollars) 2019 2018 Assets: Noncurrent deferred and refundable income taxes $ 1,324 $ 1,363 Liabilities: Other liabilities 414 331 Deferred income taxes—net $ 910 $ 1,032 The components of deferred tax assets and liabilities were: December 31, (Millions of dollars) 2019 2018 Deferred income tax assets: Tax carryforwards $ 1,218 $ 1,312 Postemployment benefits other than pensions 876 793 Pension 445 785 Warranty reserves 263 237 Research expenditures 219 — Allowance for credit losses 171 155 Post sale discounts 200 158 Other employee compensation and benefits 197 186 Lease obligations 157 — Stock-based compensation 107 121 Other—net 250 298 4,103 4,045 Deferred income tax liabilities: Capital and intangible assets, including lease basis differences (1,574 ) (1,381 ) Bond discount (122 ) (127 ) Translation (194 ) (190 ) Other outside basis differences (257 ) (271 ) Undistributed profits of non-U.S. subsidiaries (118 ) (129 ) (2,265 ) (2,098 ) Valuation allowance for deferred tax assets (928 ) (915 ) Deferred income taxes—net $ 910 $ 1,032 At December 31, 2019 , approximately $1,320 million of U.S. state tax net operating losses (NOLs) and $125 million of U.S. state tax credit carryforwards were available. The state NOLs primarily expire over the next twenty years . The state tax credit carryforwards primarily expire over the next fifteen years , with some credits having an unlimited carryforward period. In total, we have established a valuation allowance of $172 million related to certain of these carryforwards. At December 31, 2019, approximately $264 million of U.S. foreign tax credits were available for carryforward. These credits expire in 2028. At December 31, 2019 , amounts and expiration dates of net operating loss and interest carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2020 2021 2022 2023-2025 2026-2040 Unlimited Total $ 104 $ 53 $ 81 $ 59 $ 451 $ 3,627 $ 4,375 At December 31, 2019 , non-U.S. entities that have not yet demonstrated consistent and/or sustainable profitability to support the realization of net deferred tax assets have recorded valuation allowances of $750 million , including certain entities in Luxembourg. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, follows. Reconciliation of unrecognized tax benefits: 1 Years ended December 31, (Millions of dollars) 2019 2018 2017 Balance at January 1, $ 1,796 $ 1,286 $ 1,032 Additions for tax positions related to current year 72 61 270 Additions for tax positions related to prior years 112 461 20 Reductions for tax positions related to prior years (201 ) (5 ) (27 ) Reductions for settlements 2 — (6 ) (9 ) Reductions for expiration of statute of limitations (1 ) (1 ) — Balance at December 31, $ 1,778 $ 1,796 $ 1,286 Amount that, if recognized, would impact the effective tax rate $ 1,616 $ 1,716 $ 1,209 1 Foreign currency impacts are included within each line as applicable. 2 Includes cash payment or other reduction of assets to settle liability. We classify interest and penalties on income taxes as a component of the provision for income taxes. We recognized a net provision for interest and penalties of $43 million , $42 million and $38 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. The total amount of interest and penalties accrued was $233 million and $190 million as of December 31, 2019 and 2018 , respectively. On January 31, 2018, we received a Revenue Agent ’ s Report from the IRS indicating the end of the field examination of our U.S. income tax returns for 2010 to 2012. In the audits of 2007 to 2012 including the impact of a loss carryback to 2005, the IRS has proposed to tax in the United States profits earned from certain parts transactions by Caterpillar SARL (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 $2.3 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 change to our unrecognized tax benefits for this position 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. With the exception of a loss carryback to 2005, tax years prior to 2007 are generally no longer subject to U.S. tax assessment. In our major non-U.S. jurisdictions including Australia, Brazil, China, Germany, India, Japan, Mexico, Switzerland, Singapore and the U.K., tax years are typically subject to examination for three to ten years

Cat Financial Financing Activit

Cat Financial Financing Activities	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Cat Financial Financing Activities	Cat Financial Financing Activities A. Wholesale inventory receivables Wholesale inventory receivables are receivables of Cat Financial that arise when Cat Financial provides financing for a dealer’s purchase of inventory. These receivables are included in Receivables—trade and other and Long-term receivables—trade and other in Statement 3 and were $1,401 million and $1,308 million , at December 31, 2019 and 2018 , respectively. Contractual maturities of outstanding wholesale inventory receivables: (Millions of dollars) December 31, 2019 Amounts Due In Wholesale Loans Wholesale Leases Total 2020 $ 630 $ 65 $ 695 2021 235 48 283 2022 166 32 198 2023 61 22 83 2024 27 14 41 Thereafter 21 16 37 Total 1,140 197 1,337 Guaranteed residual value 1 25 50 75 Unguaranteed residual value — 33 33 Less: Unearned income (10 ) (34 ) (44 ) Total $ 1,155 $ 246 $ 1,401 1 For Wholesale loans, represents residual value on failed sale leasebacks. Cat Financial’s wholesale inventory receivables generally may be repaid or refinanced without penalty prior to contractual maturity. Accordingly, this presentation should not be regarded as a forecast of future cash collections. Please refer to Note 18 and Table III for fair value information. B. Finance receivables Finance receivables are receivables of Cat Financial and are reported in Statement 3 net of an allowance for credit losses. Contractual maturities of outstanding finance receivables: (Millions of dollars) December 31, 2019 Amounts Due In Retail Loans Retail Leases Total 2020 $ 6,280 $ 3,134 $ 9,414 2021 3,582 2,005 5,587 2022 2,610 1,076 3,686 2023 1,634 472 2,106 2024 622 182 804 Thereafter 417 62 479 Total 15,145 6,931 22,076 Guaranteed residual value 1 53 390 443 Unguaranteed residual value — 798 798 Less: Unearned income (265 ) (655 ) (920 ) Total $ 14,933 $ 7,464 $ 22,397 1 For Retail loans, represents residual value on failed sale leasebacks. Cat Financial’s finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity. Accordingly, this presentation should not be regarded as a forecast of future cash collections. Please refer to Note 18 and Table III for fair value information. C. Allowance for credit losses The allowance for credit losses is an estimate of the losses inherent in Cat Financial’s finance receivable portfolio and includes consideration of accounts that have been individually identified as impaired, as well as pools of finance receivables where it is probable that certain receivables in the pool are impaired but the individual accounts cannot yet be identified. In identifying and measuring impairment, management takes into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions. Accounts are identified for individual review based on past-due status and 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 on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. 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 end-user customers. • Dealer - Finance receivables with Caterpillar dealers. A portfolio segment is the level at which the Company develops a systematic methodology for determining its allowance for credit losses. Cat Financial further evaluates portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Typically, Cat Financial’s finance receivables within a geographic area have similar credit risk profiles and methods for assessing and monitoring credit risk. Cat Financial’s classes, which align with management reporting for credit losses, are as follows: • North America - Finance receivables originated in the United States and Canada. • EAME - Finance receivables originated in Europe, Africa, Middle East and the Commonwealth of Independent States. • Asia Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India. • Mining - Finance receivables related to large mining customers worldwide. • Latin America - Finance receivables originated in Mexico and Central and South American countries. • Caterpillar Power Finance - Finance receivables originated worldwide related to marine vessels with Caterpillar engines and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2019 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 486 $ 21 $ 507 Receivables written off (281 ) — (281 ) Recoveries on receivables previously written off 44 — 44 Provision for credit losses 138 24 162 Other (12 ) — (12 ) Balance at end of year $ 375 $ 45 $ 420 Individually evaluated for impairment $ 178 $ 39 $ 217 Collectively evaluated for impairment 197 6 203 Ending Balance $ 375 $ 45 $ 420 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 594 $ 78 $ 672 Collectively evaluated for impairment 18,093 3,632 21,725 Ending Balance $ 18,687 $ 3,710 $ 22,397 (Millions of dollars) December 31, 2018 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 353 $ 9 $ 362 Receivables written off (235 ) — (235 ) Recoveries on receivables previously written off 46 — 46 Provision for credit losses 337 12 349 Other (15 ) — (15 ) Balance at end of year $ 486 $ 21 $ 507 Individually evaluated for impairment $ 288 $ 14 $ 302 Collectively evaluated for impairment 198 7 205 Ending Balance $ 486 $ 21 $ 507 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 858 $ 78 $ 936 Collectively evaluated for impairment 18,152 3,338 21,490 Ending Balance $ 19,010 $ 3,416 $ 22,426 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 receivable past due when any installment is over 30 days past due. The tables below summarize the recorded investment of finance receivables by aging category. (Millions of dollars) December 31, 2019 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 72 $ 23 $ 55 $ 150 $ 8,038 $ 8,188 $ 15 EAME 30 31 141 202 2,955 3,157 4 Asia Pacific 40 14 29 83 2,440 2,523 8 Mining 5 — 19 24 1,851 1,875 — Latin America 41 23 80 144 1,136 1,280 2 Caterpillar Power Finance 10 10 225 245 1,419 1,664 — Dealer North America — — — — 2,136 2,136 — EAME — — — — 342 342 — Asia Pacific — — — — 437 437 — Mining — — — — 4 4 — Latin America — — 78 78 712 790 — Caterpillar Power Finance — — — — 1 1 — Total $ 198 $ 101 $ 627 $ 926 $ 21,471 $ 22,397 $ 29 (Millions of dollars) December 31, 2018 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 65 $ 18 $ 84 $ 167 $ 7,825 $ 7,992 $ 14 EAME 19 9 153 181 2,850 3,031 5 Asia Pacific 24 9 8 41 2,409 2,450 5 Mining 28 1 9 38 1,642 1,680 — Latin America 38 29 71 138 1,421 1,559 — Caterpillar Power Finance 10 1 384 395 1,903 2,298 — Dealer North America — — — — 1,895 1,895 — EAME — — — — 333 333 — Asia Pacific — — — — 466 466 — Mining — — — — 4 4 — Latin America — — 78 78 638 716 — Caterpillar Power Finance — — — — 2 2 — Total $ 184 $ 67 $ 787 $ 1,038 $ 21,388 $ 22,426 $ 24 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 $78 million of impaired finance receivables with a related allowance of $39 million and $14 million as of December 31, 2019 and 2018 , respectively, for the Dealer portfolio segment, all of which was in Latin America. There were no impaired finance receivables as of December 31, 2017 for the Dealer portfolio segment. Cat Financial’s recorded investment in impaired finance receivables and the related unpaid principal balances and allowances for the Customer portfolio segment were as follows: December 31, 2019 December 31, 2018 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Unpaid Principal Balance Related Impaired Finance Receivables With No Allowance Recorded North America $ 6 $ 6 $ — $ 10 $ 10 $ — EAME — — — 1 1 — Asia Pacific — — — — — — Mining 22 22 — 33 33 — Latin America 8 8 — 29 29 — Caterpillar Power Finance 58 58 — 69 83 — Total $ 94 $ 94 $ — $ 142 $ 156 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 30 $ 30 $ 11 $ 40 $ 41 $ 14 EAME 61 61 29 92 92 57 Asia Pacific 8 8 2 4 4 2 Mining 37 36 9 56 55 26 Latin America 58 58 20 75 75 25 Caterpillar Power Finance 306 319 107 449 455 164 Total $ 500 $ 512 $ 178 $ 716 $ 722 $ 288 Total Impaired Finance Receivables North America $ 36 $ 36 $ 11 $ 50 $ 51 $ 14 EAME 61 61 29 93 93 57 Asia Pacific 8 8 2 4 4 2 Mining 59 58 9 89 88 26 Latin America 66 66 20 104 104 25 Caterpillar Power Finance 364 377 107 518 538 164 Total $ 594 $ 606 $ 178 $ 858 $ 878 $ 288 Years ended December 31, 2019 2018 2017 (Millions of dollars) Average Recorded Investment Interest Average Recorded Investment Interest Average Recorded Investment Interest Impaired Finance Receivables With No Allowance Recorded North America $ 9 $ — $ 16 $ 1 $ 13 $ 1 EAME 6 — 14 — 48 1 Asia Pacific — — 27 3 24 2 Mining 27 1 57 2 126 7 Latin America 21 1 38 2 64 3 Caterpillar Power Finance 54 3 130 7 221 9 Total $ 117 $ 5 $ 282 $ 15 $ 496 $ 23 Impaired Finance Receivables With An Allowance Recorded North America $ 34 $ 2 $ 49 $ 2 $ 49 $ 1 EAME 81 2 53 2 6 — Asia Pacific 9 1 4 — 31 2 Mining 48 2 46 3 — — Latin America 72 5 67 3 99 4 Caterpillar Power Finance 396 11 378 12 180 6 Total $ 640 $ 23 $ 597 $ 22 $ 365 $ 13 Total Impaired Finance Receivables North America $ 43 $ 2 $ 65 $ 3 $ 62 $ 2 EAME 87 2 67 2 54 1 Asia Pacific 9 1 31 3 55 4 Mining 75 3 103 5 126 7 Latin America 93 6 105 5 163 7 Caterpillar Power Finance 450 14 508 19 401 15 Total $ 757 $ 28 $ 879 $ 37 $ 861 $ 36 Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. As of December 31, 2019 and 2018, there were $78 million in finance receivables on non-accrual status for the Dealer portfolio segment, all of which was in Latin America. The recorded investment in Customer finance receivables on non-accrual status was as follows: December 31, (Millions of dollars) 2019 2018 North America $ 44 $ 77 EAME 165 154 Asia Pacific 21 4 Mining 47 50 Latin America 89 106 Caterpillar Power Finance 361 416 Total $ 727 $ 807 Troubled Debt Restructurings A restructuring of a finance receivable constitutes a troubled debt restructuring (TDR) when the lender grants a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest. There were no finance receivables modified as TDRs during the years ended December 31, 2019 , 2018 or 2017 for the Dealer portfolio segment. Cat Financial’s recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2019 , 2018 and 2017 were as follows: (Millions of dollars) Year ended December 31, 2019 Number of Contracts Pre-TDR Post-TDR North America 15 $ 11 $ 11 EAME 19 17 17 Asia Pacific — — — Mining 2 8 8 Latin America 5 5 3 Caterpillar Power Finance 21 168 165 Total 62 $ 209 $ 204 Year ended December 31, 2018 Number of Contracts Pre-TDR Post-TDR North America 38 $ 21 $ 21 EAME — — — Asia Pacific — — — Mining 1 29 29 Latin America 1 3 3 Caterpillar Power Finance 12 133 99 Total 52 $ 186 $ 152 Year ended December 31, 2017 Number of Contracts Pre-TDR Post-TDR North America 43 $ 34 $ 35 EAME 4 1 1 Asia Pacific 10 39 31 Mining 2 57 56 Latin America 17 26 27 Caterpillar Power Finance 1 68 422 407 Total 144 $ 579 $ 557 1 In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2019 , 2018 and 2017 which had been modified within twelve months prior to the default date, were as follows: (Millions of dollars) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Number Post-TDR Number Post-TDR Number Post-TDR North America 11 $ 5 10 $ 10 4 $ 3 EAME — — — — 1 — Asia Pacific — — — — 4 1 Latin America 1 — — 3 1 243 17 Caterpillar Power Finance 1 10 3 33 — — Total 12 $ 15 16 $ 44 252 $ 21 1 In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories (principally using the LIFO method) are comprised of the following: December 31, (Millions of dollars) 2019 2018 Raw materials $ 4,263 $ 4,477 Work-in-process 1,147 1,259 Finished goods 5,598 5,562 Supplies 258 231 Total inventories $ 11,266 $ 11,529 During the third quarter of 2019, changes were made to the classification of inventories primarily related to purchased parts between Raw materials, Work-in-process and Finished goods. The prior year amounts have been retrospectively adjusted to conform to the current-year classification. During 2017, closure of our facility in Gosselies, Belgium resulted in a liquidation of LIFO inventory. The liquidated inventory was carried at lower costs prevailing in prior years as compared with current costs. The effect of this reduction in inventory decreased Cost of goods sold by approximately $66 million and increased Profit by approximately $49 million or $0.08 per share. The impact of LIFO liquidations during 2019 and 2018 was not significant to Statement 1. We had long-term material purchase obligations of approximately $270 million at December 31, 2019 .

Property, plant and equipment

Property, plant and equipment	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Property, plant and equipment	Property, plant and equipment December 31, (Millions of dollars) Useful Lives (Years) 2019 2018 Land — $ 664 $ 671 Buildings and land improvements 20-45 6,710 6,977 Machinery, equipment and other 2-10 13,287 13,733 Software 3-7 1,728 1,703 Equipment leased to others 1-7 6,208 6,015 Construction-in-process — 620 682 Total property, plant and equipment, at cost 29,217 29,781 Less: Accumulated depreciation (16,313 ) (16,207 ) Property, plant and equipment–net $ 12,904 $ 13,574

Intangible assets and goodwill

Intangible assets and goodwill	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets and goodwill	Intangible assets and goodwill A. Intangible assets Intangible assets are comprised of the following: December 31, 2019 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,450 $ (1,406 ) $ 1,044 Intellectual property 12 1,510 (1,055 ) 455 Other 13 191 (125 ) 66 Total finite-lived intangible assets 14 $ 4,151 $ (2,586 ) $ 1,565 December 31, 2018 Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,463 $ (1,249 ) $ 1,214 Intellectual property 11 1,557 (965 ) 592 Other 13 199 (108 ) 91 Total finite-lived intangible assets 14 $ 4,219 $ (2,322 ) $ 1,897 During 2018, we acquired finite-lived intangible assets of $112 million and $6 million due to the purchase of ECM S.p.A. and Downer Freight Rail, respectively. See Note 24 for details on these acquisitions. Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired. Amortization expense related to intangible assets was $324 million , $331 million and $323 million for 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , amortization expense related to intangible assets is expected to be: (Millions of dollars) 2020 2021 2022 2023 2024 Thereafter $310 $292 $273 $215 $158 $317 B. Goodwill In 2018, we acquired net assets with related goodwill of $127 million in the Energy & Transportation segment. We recorded goodwill of $109 million related to the acquisition of ECM S.p.A. and $18 million related to the acquisition of Downer Freight Rail. See Note 24 for details on these acquisitions. There were no goodwill impairments during 2019 , 2018 or 2017 . The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2019 and 2018 were as follows: (Millions of dollars) December 31, 2018 Acquisitions Other Adjustments 1 December 31, 2019 Construction Industries Goodwill $ 304 $ — $ 2 $ 306 Impairments (22 ) — — (22 ) Net goodwill 282 — 2 284 Resource Industries Goodwill 4,172 — (16 ) 4,156 Impairments (1,175 ) — — (1,175 ) Net goodwill 2,997 — (16 ) 2,981 Energy & Transportation Goodwill 2,882 — (7 ) 2,875 All Other 2 Goodwill 56 — — 56 Consolidated total Goodwill 7,414 — (21 ) 7,393 Impairments (1,197 ) — — (1,197 ) Net goodwill $ 6,217 $ — $ (21 ) $ 6,196 December 31, 2017 Acquisitions Other Adjustments 1 December 31, 2018 Construction Industries Goodwill $ 305 $ — $ (1 ) $ 304 Impairments (22 ) — — (22 ) Net goodwill 283 — (1 ) 282 Resource Industries Goodwill 4,232 — (60 ) 4,172 Impairments (1,175 ) — — (1,175 ) Net goodwill 3,057 — (60 ) 2,997 Energy & Transportation Goodwill 2,806 127 (51 ) 2,882 All Other 2 Goodwill 54 — 2 56 Consolidated total Goodwill 7,397 127 (110 ) 7,414 Impairments (1,197 ) — — (1,197 ) Net goodwill $ 6,200 $ 127 $ (110 ) $ 6,217 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segment (See Note 23).

Investments in debt and equity

Investments in debt and equity securities	12 Months Ended
	Dec. 31, 2019
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, which are recorded at fair value and are primarily included in Other assets in Statement 3. Debt securities have been classified as available-for-sale, and the unrealized gains and losses arising from the revaluation of these debt securities are included, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in Statement 3). The unrealized gains and losses arising from the revaluation of the equity securities are included in Other income (expense) in Statement 1. Realized gains and losses on sales of investments are generally determined using the specific identification method for debt and equity securities and are included in Other income (expense) in Statement 1. The cost basis and fair value of debt securities with unrealized gains and losses included in equity (Accumulated other comprehensive income (loss) in Statement 3) were as follows: December 31, 2019 December 31, 2018 (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 54 — 54 42 — 42 Corporate bonds Corporate bonds 836 20 856 735 (15 ) 720 Asset-backed securities 62 — 62 63 — 63 Mortgage-backed debt securities U.S. governmental agency 327 4 331 301 (4 ) 297 Residential 6 — 6 7 — 7 Commercial 46 1 47 14 (1 ) 13 Total debt securities $ 1,340 $ 25 $ 1,365 $ 1,171 $ (20 ) $ 1,151 As of December 31 2019 and 2018, the total unrealized loss for available -for-sale investments in an unrealized loss position that are not other-than-temporarily impaired was $1 million and $21 million , respectively. The cost basis and fair value of the available-for-sale debt securities at December 31, 2019 , by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. December 31, 2019 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 80 $ 80 Due after one year through five years 701 715 Due after five years through ten years 148 153 Due after ten years 32 33 U.S. governmental agency mortgage-backed securities 327 331 Residential mortgage-backed securities 6 6 Commercial mortgage-backed securities 46 47 Total debt securities – available-for-sale $ 1,340 $ 1,365 Sales of Securities: Years Ended December 31, (Millions of dollars) 2019 1 2018 1 2017 Proceeds from the sale of available-for-sale securities $ 260 $ 247 $ 930 Gross gains from the sale of available-for-sale securities $ 1 $ — $ 109 Gross losses from the sale of available-for-sale securities $ 1 $ — $ 5 1 Beginning January 1, 2018, equity securities are no longer classified as available-for-sale securities. For the years ended December 31 2019 and 2018, the net unrealized gains (losses) for equity securities held at December 31, 2019 and 2018 were $29 million and $(25) million

Postemployment benefit plans

Postemployment benefit plans	12 Months Ended
	Dec. 31, 2019
Retirement Benefits [Abstract]
Postemployment benefit plans	Postemployment benefit plans We provide defined benefit pension plans, defined contribution plans and/or other postretirement benefit plans (retirement health care and life insurance) to employees in many of our locations throughout the world. Our defined benefit pension plans provide a benefit based on years of service and/or the employee’s average earnings near retirement. Our defined contribution plans allow employees to contribute a portion of their salary to help save for retirement, and in most cases, we provide a matching contribution. The benefit obligation related to our non-U.S. defined benefit pension plans are for employees located primarily in Europe, Japan and Brazil. For other postretirement benefits (OPEB), substantially all of our benefit obligation is for employees located in the United States. Our U.S. defined benefit pension plans for support and management employees were frozen for certain employees on December 31, 2010 and were frozen for the remaining employees on December 31, 2019. On the respective transition dates employees move to a retirement benefit that provides a frozen pension benefit and a 401(k) plan that will include a matching contribution and a new annual employer contribution. In the first quarter of 2017, we announced the closure of our Gosselies, Belgium facility. This announcement impacted certain employees that participated in a defined benefit pension plan and resulted in a net loss of $20 million in the first quarter of 2017 for curtailment and termination benefits. U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits 2019 2018 2019 2018 2019 2018 Weighted-average assumptions used to determine benefit obligation, end of year: Discount rate 3.2 % 4.2 % 1.9 % 2.5 % 3.2 % 4.2 % Rate of compensation increase 1 — % 4.0 % 2.0 % 3.0 % 4.0 % 4.0 % 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly this assumption is no longer applicable. The assumed discount rate is used to discount future benefit obligations back to today’s dollars. The U.S. discount rate is based on a benefit cash flow-matching approach and represents the rate at which our benefit obligations could effectively be settled as of our measurement date, December 31. The benefit cash flow-matching approach involves analyzing Caterpillar’s projected cash flows against a high quality bond yield curve, calculated using a wide population of corporate Aa bonds available on the measurement date. A similar process is used to determine the assumed discount rate for our most significant non-U.S. plans. This rate is sensitive to changes in interest rates. A decrease in the discount rate would increase our obligation and future expense. U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2019 2018 2019 2018 2019 2018 Accumulated benefit obligation, end of year $ 17,773 $ 15,877 $ 4,502 $ 4,038 Change in benefit obligation: Benefit obligation, beginning of year $ 15,953 $ 17,326 $ 4,215 $ 4,606 $ 3,649 $ 4,002 Service cost 115 125 80 89 80 83 Interest cost 600 534 94 96 136 125 Plan amendments — — (5 ) 26 8 (25 ) Actuarial losses (gains) 2,090 (1,058 ) 424 (88 ) 350 (195 ) Foreign currency exchange rates — — 95 (205 ) (1 ) (28 ) Participant contributions — — 7 6 46 51 Benefits paid - gross (982 ) (971 ) (237 ) (277 ) (316 ) (369 ) Less: federal subsidy on benefits paid — — — — 9 7 Curtailments, settlements and termination benefits (3 ) (3 ) (7 ) (38 ) (1 ) (2 ) Benefit obligation, end of year $ 17,773 $ 15,953 $ 4,666 $ 4,215 $ 3,960 $ 3,649 Change in plan assets: Fair value of plan assets, beginning of year $ 12,697 $ 13,416 $ 4,025 $ 4,305 $ 328 $ 504 Actual return on plan assets 2,740 (784 ) 482 13 71 (5 ) Foreign currency exchange rates — — 105 (187 ) — — Company contributions 1,542 1,039 143 165 127 147 Participant contributions — — 7 6 46 51 Benefits paid (982 ) (971 ) (237 ) (277 ) (316 ) (369 ) Settlements and termination benefits (3 ) (3 ) — — (1 ) — Fair value of plan assets, end of year $ 15,994 $ 12,697 $ 4,525 $ 4,025 $ 255 $ 328 Over (under) funded status $ (1,779 ) $ (3,256 ) $ (141 ) $ (190 ) $ (3,705 ) $ (3,321 ) Components of net amount recognized in financial position: Other assets (non-current asset) $ 219 $ 9 $ 485 $ 442 $ — $ — Accrued wages, salaries and employee benefits (current liability) (42 ) (40 ) (19 ) (20 ) (161 ) (173 ) Liability for postemployment benefits (non-current liability) 1 (1,956 ) (3,225 ) (607 ) (612 ) (3,544 ) (3,148 ) Net liability recognized $ (1,779 ) $ (3,256 ) $ (141 ) $ (190 ) $ (3,705 ) $ (3,321 ) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Prior service cost (credit) $ — $ — $ 16 $ 20 $ (78 ) $ (126 ) 1 The Liability for postemployment benefits reported in Statement 3 includes our liability for other postemployment benefits and our liability for non-qualified deferred compensation plans. For 2019, these liabilities were $60 million and $432 million , respectively. For 2018, these liabilities were $119 million and $351 million , respectively. U.S. Pension Benefits Non-U.S. Pension Benefits (Millions of dollars) 2019 2018 2019 2018 Pension plans with projected benefit obligation in excess of plan assets: Projected benefit obligation $ 14,037 $ 15,614 $ 2,010 $ 1,821 Accumulated benefit obligation $ 14,037 $ 15,541 $ 1,896 $ 1,723 Fair value of plan assets $ 12,039 $ 12,349 $ 1,384 $ 1,189 Pension plans with accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 14,037 $ 15,614 $ 1,875 $ 1,655 Accumulated benefit obligation $ 14,037 $ 15,541 $ 1,799 $ 1,603 Fair value of plan assets $ 12,039 $ 12,349 $ 1,269 $ 1,047 The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented. U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 115 $ 125 $ 115 $ 80 $ 89 $ 95 $ 80 $ 83 $ 78 Interest cost 600 534 525 94 96 101 136 125 130 Expected return on plan assets (721 ) (808 ) (734 ) (148 ) (221 ) (231 ) (18 ) (32 ) (37 ) Curtailments, settlements and termination benefits (1 ) — 9 (7 ) (33 ) 15 — (2 ) — Amortization of prior service cost (credit) 1 — — — — — (2 ) (40 ) (36 ) (23 ) Actuarial loss (gain) 2 72 534 481 90 111 (195 ) 306 (150 ) 15 Net Periodic benefit cost (benefit) 3 $ 65 $ 385 $ 396 $ 109 $ 42 $ (217 ) $ 464 $ (12 ) $ 163 Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): Current year prior service cost (credit) $ — $ — $ — $ (4 ) $ 20 $ 3 $ 8 $ (20 ) $ (77 ) Amortization of prior service (cost) credit 1 — — — — — 2 40 36 23 Total recognized in other comprehensive income — — — (4 ) 20 5 48 16 (54 ) Total recognized in net periodic cost and other comprehensive income $ 65 $ 385 $ 396 $ 105 $ 62 $ (212 ) $ 512 $ 4 $ 109 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate used to measure service cost 4.3 % 3.7 % 4.2 % 2.5 % 2.3 % 2.4 % 4.1 % 3.5 % 3.9 % Discount rate used to measure interest cost 3.9 % 3.2 % 3.3 % 2.3 % 2.2 % 2.3 % 3.9 % 3.2 % 3.3 % Expected rate of return on plan assets 4 5.9 % 6.3 % 6.7 % 3.8 % 5.2 % 5.9 % 7.2 % 7.5 % 7.5 % Rate of compensation increase 4.0 % 4.0 % 4.0 % 3.0 % 4.0 % 4.0 % 4.1 % 4.0 % 4.0 % 1 The estimated amount of prior service cost (credit) that will be amortized from Accumulated other comprehensive income (loss) at December 31, 2019 into net periodic benefit cost (pre-tax) in 2020 is a credit of $38 million for Other Postretirement Benefits. 2 Actuarial loss (gain) represents the effects of actual results differing from our assumptions and the effects of changing assumptions. We recognize actuarial loss (gain) immediately through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. 3 The service cost component is included in Operating costs and all other components are included in Other income (expense) in Statement 1. 4 The weighted-average rates for 2020 are 5.1 percent and 3.2 percent for U.S. and non-U.S. pension plans, respectively. The discount rates used in the determination of our service and interest cost components are determined by utilizing a full yield curve approach which applies specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. Our U.S. expected long-term rate of return on plan assets is based on our estimate of long-term passive returns for equities and fixed income securities weighted by the allocation of our pension assets. Based on historical performance, we increase the passive returns due to our active management of the plan assets. To arrive at our expected long-term return, the amount added for active management was 0.40 percent for 2019 , 0.75 percent for 2018 and 0.80 percent for 2017 . A similar process is used to determine this rate for our non-U.S. plans. The assumed health care trend rate represents the rate at which health care costs are assumed to increase. We assumed a weighted-average increase of 6.1 percent in our calculation of 2019 benefit expense. We expect a weighted-average increase of 6.1 percent during 2020. The 2020 rates are assumed to decrease gradually to the ultimate health care trend rate of 5 percent in 2025 . This rate represents 3 percent general inflation plus 2 percent additional health care inflation. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have had the following effects: (Millions of dollars) One-percentage- point increase One-percentage- point decrease Effect on 2019 service and interest cost components of other postretirement benefit cost $ 13 $ (11 ) Effect on accumulated postretirement benefit obligation $ 158 $ (133 ) Information about expected contributions and benefit payments for pension and other postretirement benefit plans is as follows: (Millions of dollars) 2020 Expected employer contributions: U.S. Pension Benefits $ 40 Non-U.S. Pension Benefits $ 105 Other Postretirement Benefits $ 135 Expected benefit payments: 2020 2021 2022 2023 2024 2025- 2029 Total U.S. Pension Benefits $ 1,020 $ 1,010 $ 1,010 $ 1,010 $ 1,010 $ 5,005 $ 10,065 Non-U.S. Pension Benefits $ 280 $ 175 $ 180 $ 185 $ 190 $ 1,055 $ 2,065 Other Postretirement Benefits $ 290 $ 285 $ 280 $ 275 $ 270 $ 1,340 $ 2,740 Expected Medicare Part D subsidy: $ 9 $ 9 $ 9 $ 8 $ 8 $ 35 $ 78 The above table reflects the total expected employer contributions and expected benefits to be paid from the plan or from company assets and does not include the participants’ share of the cost. The expected benefit payments for our other postretirement benefits include payments for prescription drug benefits. The above table also includes Medicare Part D subsidy amounts expected to be received by the company which will offset other postretirement benefit payments. In general, our strategy for both the U.S. and non-U.S. pensions includes ongoing alignment of our investments to our liabilities, while reducing risk in our portfolio. The current U.S. pension target asset allocation is 70 percent fixed income and 30 percent equities. This target allocation will be revisited periodically to ensure it reflects our overall objectives. The non-U.S. pension weighted-average target allocations are 79 percent fixed income, 12 percent equities, 5 percent real estate and 4 percent other. The target allocations for each plan vary based upon local statutory requirements, demographics of plan participants and funded status. The non-U.S. plan assets are primarily invested in non-U.S. securities. Our target allocation for the other postretirement benefit plans is 70 percent equities and 30 percent fixed income. The U.S. plans are rebalanced to within the appropriate target asset allocation ranges on a monthly basis. The frequency of rebalancing for the non-U.S. plans varies depending on the plan. As a result of our diversification strategies, there are no significant concentrations of risk within the portfolio of investments. The use of certain derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. The plans do not use derivative contracts for speculative purposes. The accounting guidance on fair value measurements specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques (Level 1, 2 and 3). See Note 18 for a discussion of the fair value hierarchy. Fair values are determined as follows: • Equity securities are primarily based on valuations for identical instruments in active markets. • Fixed income securities are primarily based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds. • Real estate is stated at the fund’s net asset value or at appraised value. • Cash, short-term instruments and other are based on the carrying amount, which approximates fair value, or the fund’s net asset value. The fair value of the pension and other postretirement benefit plan assets by category is summarized below: December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value U.S. Pension Equity securities: U.S. equities $ 2,578 $ — $ 23 $ 133 $ 2,734 Non-U.S. equities 2,068 — — — 2,068 Fixed income securities: U.S. corporate bonds — 6,577 57 — 6,634 Non-U.S. corporate bonds — 1,414 — — 1,414 U.S. government bonds — 2,220 — — 2,220 U.S. governmental agency mortgage-backed securities — 63 — — 63 Non-U.S. government bonds — 96 — — 96 Real estate — — 10 — 10 Cash, short-term instruments and other 230 10 — 515 755 Total U.S. pension assets $ 4,876 $ 10,380 $ 90 $ 648 $ 15,994 December 31, 2018 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value U.S. Pension Equity securities: U.S. equities $ 1,971 $ — $ 35 $ 155 $ 2,161 Non-U.S. equities 1,279 — 1 — 1,280 Fixed income securities: U.S. corporate bonds — 6,371 61 52 6,484 Non-U.S. corporate bonds — 1,332 — — 1,332 U.S. government bonds — 590 — — 590 U.S. governmental agency mortgage-backed securities — 384 — — 384 Non-U.S. government bonds — 79 — — 79 Real estate — — 10 — 10 Cash, short-term instruments and other 202 9 — 166 377 Total U.S. pension assets $ 3,452 $ 8,765 $ 107 $ 373 $ 12,697 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 58 $ — $ — $ — $ 58 Non-U.S. equities 346 29 — 65 440 Global equities 1 26 16 — 111 153 Fixed income securities: U.S. corporate bonds — 253 — — 253 Non-U.S. corporate bonds — 808 — 7 815 U.S. government bonds — 65 — — 65 Non-U.S. government bonds — 1,952 — — 1,952 Global fixed income 1 — 182 — 208 390 Real estate — 211 — — 211 Cash, short-term instruments and other 2 68 120 — — 188 Total non-U.S. pension assets $ 498 $ 3,636 $ — $ 391 $ 4,525 December 31, 2018 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 43 $ — $ — $ — $ 43 Non-U.S. equities 259 28 — 53 340 Global equities 1 23 23 — 90 136 Fixed income securities: U.S. corporate bonds — 206 — — 206 Non-U.S. corporate bonds — 690 — 6 696 U.S. government bonds — 74 — — 74 Non-U.S. government bonds — 1,721 — — 1,721 Global fixed income 1 — 261 — 215 476 Real estate — 185 — — 185 Cash, short-term instruments and other 2 66 82 — — 148 Total non-U.S. pension assets $ 391 $ 3,270 $ — $ 364 $ 4,025 1 Includes funds that invest in both U.S. and non-U.S. securities. 2 Includes funds that invest in multiple asset classes, hedge funds and other. We have reclassified $143 million from Level 1 to measured at net assets value for 2018. The reclassification did not impact total assets. December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 119 $ — $ — $ — $ 119 Non-U.S. equities 56 — — — 56 Fixed income securities: U.S. corporate bonds — 33 — — 33 Non-U.S. corporate bonds — 6 — — 6 U.S. government bonds — 9 — — 9 U.S. governmental agency mortgage-backed securities — 16 — — 16 Non-U.S. government bonds — 3 — — 3 Cash, short-term instruments and other 2 1 — 10 13 Total other postretirement benefit assets $ 177 $ 68 $ — $ 10 $ 255 December 31, 2018 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 151 $ 1 $ — $ — $ 152 Non-U.S. equities 64 — — — 64 Fixed income securities: U.S. corporate bonds — 45 — — 45 Non-U.S. corporate bonds — 11 — — 11 U.S. government bonds — 8 — — 8 U.S. governmental agency mortgage-backed securities — 25 — — 25 Non-U.S. government bonds — 3 — — 3 Cash, short-term instruments and other 3 1 — 16 20 Total other postretirement benefit assets $ 218 $ 94 $ — $ 16 $ 328 Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2019 and 2018 . These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions a market participant would use. (Millions of dollars) Equities Fixed Income Real Estate U.S. Pension Balance at December 31, 2017 $ 20 $ 60 $ 10 Unrealized gains (losses) (6 ) (12 ) — Realized gains (losses) — — — Purchases, issuances and settlements, net 21 11 — Transfers in and/or out of Level 3 1 2 — Balance at December 31, 2018 $ 36 $ 61 $ 10 Unrealized gains (losses) (9 ) — — Realized gains (losses) 7 — — Purchases, issuances and settlements, net (10 ) (4 ) — Transfers in and/or out of Level 3 (1 ) — — Balance at December 31, 2019 $ 23 $ 57 $ 10 We have both U.S. and non-U.S. employee defined contribution plans to help employees save for retirement. Our primary U.S. 401(k) plan allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis. Employees with frozen defined benefit pension accruals are eligible for matching contributions equal to 100 percent of employee contributions to the plan up to 6 percent of cash compensation and an annual employer contribution that ranges from 3 to 5 percent of cash compensation (depending on years of service and age). Employees that were still accruing benefits under a defined benefit pension plan up to December 31, 2019 were eligible for matching contributions equal to 50 percent of employee contributions up to 6 percent of cash compensation. All our U.S. defined benefit pension plans were frozen on December 31, 2019 for remaining employees still accruing a benefit. Starting in 2020, these employees will receive matching contributions equal to 100 percent of employee contributions to the plan up to 6 percent of cash compensation and an annual employer contribution that ranges from 3 to 5 percent of cash compensation (depending on years of service and age). These 401(k) plans include various investment funds, including a non-leveraged employee stock ownership plan (ESOP). As of December 31, 2019 and 2018 , the ESOP held 14.9 million and 17.2 million shares, respectively. All of the shares held by the ESOP were allocated to participant accounts. Dividends paid to participants are automatically reinvested into company shares unless the participant elects to have all or a portion of the dividend paid to the participant. Various other U.S. and non-U.S. defined contribution plans generally allow eligible employees to contribute a portion of their cash compensation to the plans, and in most cases, we provide a matching contribution to the funds. Total company costs related to U.S. and non-U.S. defined contribution plans were as follows: (Millions of dollars) 2019 2018 2017 U.S. plans $ 414 $ 271 $ 375 Non-U.S. plans 83 89 73 $ 497 $ 360 $ 448

Short-term borrowings

Short-term borrowings	12 Months Ended
	Dec. 31, 2019
Short-term Borrowings Disclosure [Abstract]
Short-term borrowings	Short-term borrowings December 31, (Millions of dollars) 2019 2018 Machinery, Energy & Transportation: Notes payable to banks $ 5 $ — 5 — Financial Products: Notes payable to banks 605 526 Commercial paper 4,168 4,759 Demand notes 388 438 5,161 5,723 Total short-term borrowings $ 5,166 $ 5,723 The weighted-average interest rates on short-term borrowings outstanding were: December 31, 2019 2018 Notes payable to banks 5.0 % 5.3 % Commercial paper 1.3 % 2.0 % Demand notes 1.7 % 2.2 % Please refer to Note 18 and Table III for fair value information on short-term borrowings.

Long-term debt

Long-term debt	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Long-term debt	Long-term debt December 31, (Millions of dollars) Effective Yield to Maturity 1 2019 2018 Machinery, Energy & Transportation: Notes—$1,250 million of 3.900% due 2021 2 4.01% $ 1,248 $ 1,247 Notes—$759 million of 5.200% due 2041 2 5.27% 752 751 Debentures—$120 million of 9.375% due 2021 9.41% 120 120 Debentures—$500 million of 2.600% due 2022 2 2.70% 499 498 Debentures—$82 million of 8.000% due 2023 8.06% 82 82 Debentures—$1,000 million of 3.400% due 2024 3.46% 998 997 Debentures—$193 million of 6.625% due 2028 2 6.68% 192 192 Debentures—$500 million of 2.600% due 2029 2 2.64% 497 — Debentures—$242 million of 7.300% due 2031 2 7.38% 240 240 Debentures—$307 million of 5.300% due 2035 2 8.64% 220 218 Debentures—$460 million of 6.050% due 2036 2 6.12% 456 456 Debentures—$65 million of 8.250% due 2038 2 8.38% 64 64 Debentures—$160 million of 6.950% due 2042 2 7.02% 158 158 Debentures—$1,722 million of 3.803% due 2042 2 6.39% 1,277 1,257 Debentures—$500 million of 4.300% due 2044 4.39% 493 493 Debentures—$1,000 million of 3.250% due 2049 2 3.37% 982 — Debentures—$500 million of 4.750% due 2064 4.81% 494 494 Debentures—$246 million of 7.375% due 2097 2 7.51% 241 241 Finance lease obligations & other 3 128 497 Total Machinery, Energy & Transportation 9,141 8,005 Financial Products: Medium-term notes 16,719 16,592 Other 421 403 Total Financial Products 17,140 16,995 Total long-term debt due after one year $ 26,281 $ 25,000 1 Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs. 2 Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures. 3 2018 includes $360 million related to a financing transaction in Japan entered into in 2017 that was removed in 2019 due to the new lease accounting guidance adopted January 1, 2019. See Note 1J for additional information. All outstanding notes and debentures are unsecured and rank equally with one another. On September 19, 2019, we issued $1.0 billion of 3.250% Senior Notes due 2049 and $500 million of 2.600% Senior Notes due 2029. Cat Financial’s medium-term notes are offered by prospectus and are issued through agents at fixed and floating rates. Medium-term notes due after one year have a weighted average interest rate of 2.7% with remaining maturities up to 8 years at December 31, 2019 . The above table includes $28.5 million of medium-term notes that can be called at par. The aggregate amounts of maturities of long-term debt during each of the years 2020 through 2024, including amounts due within one year and classified as current, are: December 31, (Millions of dollars) 2020 2021 2022 2023 2024 Machinery, Energy & Transportation $ 16 $ 1,403 $ 513 $ 93 $ 1,007 Financial Products 6,194 7,732 4,744 2,167 2,157 $ 6,210 $ 9,135 $ 5,257 $ 2,260 $ 3,164 Interest paid on short-term and long-term borrowings for 2019 , 2018 and 2017 was $1,057 million , $1,088 million and $1,131 million , respectively. Interest paid in 2017 includes a prepayment fee of $58 million related to the early retirement of our 7.90% senior notes due December 2018. Medium-term notes of $1.50 billion matured January 10, 2020 and were excluded from Current maturities of long-term debt as of December 31, 2019 due to an issuance on January 9, 2020 of two $750 million medium-term notes, maturing in 2021 and 2022. The table above reflects the maturity dates of the new medium-term notes. Please refer to Note 18 and Table III for fair value information on long-term debt.

Credit commitments

Credit commitments	12 Months Ended
	Dec. 31, 2019
Credit Commitments [Abstract]
Credit commitments	Credit commitments December 31, 2019 (Millions of dollars) Consolidated Machinery, Energy & Transportation Financial Products Credit lines available: Global credit facilities $ 10,500 $ 2,751 $ 7,749 Other external 4,999 194 4,805 Total credit lines available 15,499 2,945 12,554 Less: Commercial paper outstanding (4,168 ) — (4,168 ) Less: Utilized credit (1,247 ) — (1,247 ) Available credit $ 10,084 $ 2,945 $ 7,139 We have three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and Cat Financial for general liquidity purposes. Based on management's allocation decision, which can be revised from time to time, the portion of the Credit Facility available to ME&T as of December 31, 2019 was $2.75 billion . Information on our Credit Facility is as follows: • The 364-day facility of $3.15 billion (of which $0.82 billion is available to ME&T) expires in September 2020. • The three-year facility, as amended and restated in September 2019, of $2.73 billion (of which $0.72 billion is available to ME&T) expires in September 2022. • The five-year facility, as amended and restated in September 2019, of $4.62 billion (of which $1.21 billion is available to ME&T) expires in September 2024. Other consolidated credit lines with banks as of December 31, 2019 totaled $5.00 billion . These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our subsidiaries for local funding requirements. Caterpillar or Cat Financial may guarantee subsidiary borrowings under these lines. At December 31, 2019 , Caterpillar’s consolidated net worth was $14.63 billion , which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined as the consolidated shareholders’ equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income (loss). At December 31, 2019 , Cat Financial’s covenant interest coverage ratio was 1.77 to 1 . This is above the 1.15 to 1 minimum ratio, calculated as (1) profit excluding income taxes, interest expense and net gain/(loss) from interest rate derivatives to (2) interest expense calculated at the end of each calendar quarter for the rolling four quarter period then most recently ended, required by the Credit Facility. In addition, at December 31, 2019 , Cat Financial’s six-month covenant leverage ratio was 7.65 to 1 and year-end covenant leverage ratio was 7.46 to 1 . This is below the maximum ratio of debt to net worth of 10 to 1 , calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility. In the event Caterpillar or Cat Financial does not meet one or more of their respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants. Additionally, in such event, certain of Cat Financial’s other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings. At December 31, 2019 , there were no borrowings under the Credit Facility.

Profit per share

Profit per share	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Profit per share	Profit per share Computations of profit per share: (Dollars in millions except per share data) 2019 2018 2017 Profit for the period (A) 1 $ 6,093 $ 6,147 $ 754 Determination of shares (in millions): Weighted average number of common shares outstanding (B) 561.6 591.4 591.8 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 5.9 8.0 7.5 Average common shares outstanding for fully diluted computation (C) 2 567.5 599.4 599.3 Profit per share of common stock: Assuming no dilution (A/B) $ 10.85 $ 10.39 $ 1.27 Assuming full dilution (A/C) 2 $ 10.74 $ 10.26 $ 1.26 Shares outstanding as of December 31 (in millions) 550.1 575.5 597.6 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. For the year ended December 31, 2019 and 2018, 3.0 million and 1.5 million outstanding stock options, respectively, were excluded from the computation of diluted earnings per share because the effect would have been antidilutive. For 2017, no outstanding SARs and stock options were excluded from the computation of diluted earnings per share because all outstanding SARs and stock options had a dilutive effect. In July 2018, the Board approved a new share repurchase authorization of up to $10.0 billion of Caterpillar common stock effective January 1, 2019, with no expiration. During 2019 and 2018, we repurchased 30.6 million and 27.7 million shares of Caterpillar common stock, respectively, at an aggregate cost of $4.0 billion and $3.8 billion , respectively. These purchases were made through a combination of accelerated stock repurchase agreements with third-party financial institutions and open market transactions. We did not repurchase any Caterpillar common stock during 2017.

Accumulated other comprehensive

Accumulated other comprehensive income (loss)	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income (loss) Comprehensive income and its components are presented in Statement 2. Changes in Accumulated other comprehensive income (loss), net of tax, included in Statement 4, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Balance at December 31, 2016 $ (1,970 ) $ 14 $ (115 ) $ 32 $ (2,039 ) Other comprehensive income (loss) before reclassifications 752 48 (3 ) 41 838 Amounts reclassified from accumulated other comprehensive (income) loss 13 (16 ) 77 (65 ) 9 Other comprehensive income (loss) 765 32 74 (24 ) 847 Balance at December 31, 2017 $ (1,205 ) $ 46 $ (41 ) $ 8 $ (1,192 ) Adjustment to adopt recognition and measurement of financial assets and liabilities guidance — — — (11 ) (11 ) Balance at January 1, 2018 (1,205 ) 46 (41 ) (3 ) (1,203 ) Other comprehensive income (loss) before reclassifications (397 ) (6 ) 61 (12 ) (354 ) Amounts reclassified from accumulated other comprehensive (income) loss 1 (28 ) (100 ) — (127 ) Other comprehensive income (loss) (396 ) (34 ) (39 ) (12 ) (481 ) Balance at December 31, 2018 $ (1,601 ) $ 12 $ (80 ) $ (15 ) $ (1,684 ) Adjustment to adopt new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income 98 19 (9 ) — 108 Balance at January 1, 2019 (1,503 ) 31 (89 ) (15 ) (1,576 ) Other comprehensive income (loss) before reclassifications 16 (4 ) 43 35 90 Amounts reclassified from accumulated other comprehensive (income) loss — (30 ) (51 ) — (81 ) Other comprehensive income (loss) 16 (34 ) (8 ) 35 9 Balance at December 31, 2019 $ (1,487 ) $ (3 ) $ (97 ) $ 20 $ (1,567 ) The effect of the reclassifications out of Accumulated other comprehensive income (loss) on Statement 1 is as follows: Year ended December 31, (Millions of dollars) Classification of income (expense) 2019 2018 2017 Foreign currency translation: Gain (loss) on foreign currency translation Other income (expense) $ — $ (1 ) $ (13 ) Tax (provision) benefit — — — Reclassifications net of tax $ — $ (1 ) $ (13 ) Pension and other postretirement benefits: Amortization of prior service credit (cost) Other income (expense) $ 40 $ 36 $ 25 Tax (provision) benefit (10 ) (8 ) (9 ) Reclassifications net of tax $ 30 $ 28 $ 16 Derivative financial instruments: Foreign exchange contracts Sales of Machinery, Energy & Transportation $ 11 $ — $ — Foreign exchange contracts Cost of goods sold $ (3 ) $ — $ — Foreign exchange contracts Other income (expense) $ 37 $ 115 $ (121 ) Foreign exchange contracts Interest expense of Financial Products 33 19 6 Interest rate contracts Interest expense excluding Financial Products (4 ) (3 ) (9 ) Interest rate contracts Interest expense of Financial Products (8 ) — 3 Reclassifications before tax 66 131 (121 ) Tax (provision) benefit (15 ) (31 ) 44 Reclassifications net of tax $ 51 $ 100 $ (77 ) Available-for-sale securities: Realized gain (loss) on sale of securities Other income (expense) $ — $ — $ 100 Tax (provision) benefit — — (35 ) Reclassifications net of tax $ — $ — $ 65 Total reclassifications from Accumulated other comprehensive income (loss) $ 81 $ 127 $ (9 )

Fair value disclosures

Fair value disclosures	12 Months Ended
	Dec. 31, 2019
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 We have investments in certain debt and equity securities, primarily at Insurance Services, that are 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 and is not classified within the fair value hierarchy. See Note 11 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 Statement 3 as of December 31, 2019 and 2018 are summarized below: December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets / Liabilities, at Fair Value Assets Debt securities Government debt U.S. treasury bonds $ 9 $ — $ — $ — $ 9 Other U.S. and non-U.S. government bonds — 54 — — 54 Corporate bonds Corporate bonds — 856 — — 856 Asset-backed securities — 62 — — 62 Mortgage-backed debt securities U.S. governmental agency — 331 — — 331 Residential — 6 — — 6 Commercial — 47 — — 47 Total debt securities 9 1,356 — — 1,365 Equity securities Large capitalization value 187 — — — 187 Smaller company growth 29 — 4 — 33 REIT — — — 126 126 Total equity securities 216 — 4 126 346 Derivative financial instruments, net — 45 — — 45 Total Assets $ 225 $ 1,401 $ 4 $ 126 $ 1,756 December 31, 2018 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets / Liabilities, at Fair Value Assets Debt securities Government debt U.S. treasury bonds $ 9 $ — $ — $ — $ 9 Other U.S. and non-U.S. government bonds — 42 — — 42 Corporate bonds Corporate bonds — 720 — — 720 Asset-backed securities — 63 — — 63 Mortgage-backed debt securities U.S. governmental agency — 297 — — 297 Residential — 7 — — 7 Commercial — 13 — — 13 Total debt securities 9 1,142 — — 1,151 Equity securities Large capitalization value 260 — — — 260 Smaller company growth 46 — — — 46 REIT — — — 119 119 Total equity securities 306 — — 119 425 Total Assets $ 315 $ 1,142 $ — $ 119 $ 1,576 Liabilities Derivative financial instruments, net $ — $ 19 $ — $ — $ 19 Total Liabilities $ — $ 19 $ — $ — $ 19 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, the fair value of the collateral for collateral-dependent receivables, or the observable market price of the receivable. 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 $343 million and $469 million for the years ended December 31, 2019 and 2018 , respectively. B. Fair values of financial instruments In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair value measurements section above, we used the following methods and assumptions to estimate the fair value of our financial instruments: Cash and short-term investments Carrying amount approximated fair value. Restricted cash and short-term investments Carrying amount approximated fair value. Restricted cash and short-term investments are included in Prepaid expenses and other current assets in Statement 3. Finance receivables Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Wholesale inventory receivables Fair value was estimated by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Short-term borrowings Carrying amount approximated fair value. Long-term debt Fair value for fixed and floating rate debt was estimated based on quoted market prices. Guarantees The fair value of guarantees is based upon our estimate of the premium a market participant would require to issue the same guarantee in a stand-alone arms-length transaction with an unrelated party. If quoted or observable market prices are not available, fair value is based upon internally developed models that utilize current market-based assumptions. Fair values of our financial instruments were as follows: TABLE III—Fair Values of Financial Instruments 2019 2018 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets at December 31, Cash and short-term investments $ 8,284 $ 8,284 $ 7,857 $ 7,857 1 Statement 3 Restricted cash and short-term investments 8 8 33 33 1 Statement 3 Investments in debt and equity securities 1,711 1,711 1,576 1,576 1, 2 & 3 Notes 11 & 19 Finance receivables–net (excluding finance leases 1 ) 14,473 14,613 14,714 14,798 3 Notes 7 & 19 Wholesale inventory receivables–net (excluding finance leases 1 ) 1,105 1,076 1,050 1,025 3 Notes 7 & 19 Foreign currency contracts–net 62 62 47 47 2 Notes 4 & 19 Commodity contracts–net 3 3 — — 2 Notes 4 & 19 Liabilities at December 31, Short-term borrowings 5,166 5,166 5,723 5,723 1 Note 13 Long-term debt (including amounts due within one year): Machinery, Energy & Transportation 9,157 11,216 8,015 9,046 2 Note 14 Financial Products 23,334 23,655 22,815 22,684 2 Note 14 Interest rate swaps–net 20 20 36 36 2 Notes 4 & 19 Commodity contracts–net — — 30 30 2 Notes 4 & 19 Guarantees 5 5 8 8 3 Note 21 1 Represents finance leases and failed sale leasebacks of $7,800 million at December 31, 2019 and finance leases of $7,463 million at December 31, 2018, respectively.

Concentration of credit risk

Concentration of credit risk	12 Months Ended
	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Concentration of credit risk	Concentration of credit risk Financial instruments with potential credit risk consist primarily of trade and finance receivables and short-term and long-term investments. Additionally, to a lesser extent, we have a potential credit risk associated with counterparties to derivative contracts. Trade receivables are primarily short-term receivables from independently owned and operated dealers and customers which arise in the normal course of business. We perform regular credit evaluations of our dealers and customers. Collateral generally is not required, and the majority of our trade receivables are unsecured. We do, however, when deemed necessary, make use of various devices such as security agreements and letters of credit to protect our interests. No single dealer or customer represents a significant concentration of credit risk. Finance receivables and wholesale inventory receivables primarily represent receivables under installment sales contracts, receivables arising from leasing transactions and notes receivable. We generally maintain a secured interest in the equipment financed. No single customer or dealer represents a significant concentration of credit risk. Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited. Long-term investments, primarily included in Other assets in Statement 3, are comprised primarily of available-for-sale debt securities and equity securities at Insurance Services. For derivative contracts, collateral is generally not required of the counterparties or of our company. The company generally enters into International Swaps and Derivatives Association (ISDA) master netting agreements within ME&T and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. The master netting agreements reduce the amount of loss the company would incur should the counterparties fail to meet their obligations. At December 31, 2019 and 2018 , the maximum exposure to credit loss was $116 million and $131 million , respectively, before the application of any master netting agreements. Please refer to Note 18 and Table III above for fair value information.

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
A. Lessee Disclosure	Leases A. Lessee arrangements We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment through operating leases. We recognize a lease liability and corresponding right-of-use asset based on the present value of lease payments. To determine the present value of lease payments for most of our leases, we use our incremental borrowing rate based on information available on the lease commencement date. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected not to separate payments for lease and non-lease components. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we have included the option in the recognition of right-of-use assets and lease liabilities. We have elected not to recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less. Our finance leases are not significant and therefore are not included in the following disclosures. The components of lease costs were as follows: (Millions of dollars) Year ended December 31 2019 Operating lease cost $ 232 Short-term lease cost $ 57 Operating lease right-of-use assets are recognized in Other assets in Statement 3. The operating lease liabilities are recognized in Other current liabilities and Other liabilities. Supplemental information related to leases was as follows: (Millions of dollars) December 31, 2019 January 1, 2019 Operating Leases Other assets $ 624 $ 713 Other current liabilities $ 173 $ 209 Other liabilities $ 461 $ 511 Weighted average remaining lease term Operating leases 7 years 7 years Weighted average discount rates Operating leases 2 % 2 % Maturities of operating lease liabilities at December 31, 2019 and minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year at December 31, 2018 were as follows: (Millions of dollars) December 31, 2019 Amounts Due In 2020 $ 185 2021 139 2022 86 2023 64 2024 46 Thereafter 175 Total lease payments 695 Less: Imputed interest (61 ) Total $ 634 December 31, 2018 Amounts Due In 2019 $ 205 2020 154 2021 111 2022 67 2023 50 Thereafter 185 Total $ 772 Supplemental cash flow information related to leases was as follows: (Millions of dollars) Year ended December 31 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 224 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 122
B. Lessor Disclosure	B. Lessor arrangements We lease Caterpillar machinery, engines and other equipment to customers and dealers around the world, primarily through Cat Financial. Cat Financial leases to customers primarily through sales-type (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease. Cat Financial also offers tax leases that are classified as either operating or direct finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, Cat Financial is considered the owner of the equipment. Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. The residual value of Cat Financial’s leased equipment is determined based on its estimated end-of-term market value. We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends. The following critical factors are also considered in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options. During the term of our leases, we monitor residual values. For operating leases, adjustments to depreciation expense reflecting changes in residual value estimates are recorded prospectively on a straight-line basis. For finance leases, residual value adjustments are recognized through a reduction of finance revenue over the remaining lease term. See Note 7 for contractual maturities of finance lease receivables (sales-type and direct finance leases). The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows: December 31, (Millions of dollars) 2019 2018 Equipment leased to others - at original cost $ 6,208 $ 6,015 Less: Accumulated depreciation (1,960 ) (1,744 ) Equipment leased to others - net $ 4,248 $ 4,271 Payments due for operating leases at December 31, 2019 and scheduled minimum rental payments for operating leases at December 31, 2018 were as follows: (Millions of dollars) December 31, 2019 2020 2021 2022 2023 2024 Thereafter Total $861 $558 $299 $149 $74 $70 $2,011 December 31, 2018 2019 2020 2021 2022 2023 Thereafter Total $896 $574 $314 $158 $71 $69 $2,082 Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows: (Millions of dollars) Year ended December 31 2019 Finance lease revenue $ 521 Operating lease revenue 1,248 Total $ 1,769

Guarantees and product warranty

Guarantees and product warranty	12 Months Ended
	Dec. 31, 2019
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. Supplier consortium performance guarantees We have provided guarantees to a customer in Brazil and a customer in Europe related to the performance of contractual obligations by supplier consortiums to which our Caterpillar subsidiaries are members. The guarantees cover potential damages incurred by the customers resulting from the supplier consortiums’ non-performance. The damages are capped except for failure of the consortiums to meet certain obligations outlined in the contract in the normal course of business. The guarantee for the customer in Europe will expire when the supplier consortium performs all of its contractual obligations, which are expected to be completed in 2022. The agreement with the customer in Brazil was terminated during second quarter of 2019. No payments were made under the guarantee. 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. In addition, we have entered into contracts involving industry standard indemnifications that do not limit potential payment. 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 December 31, 2019 and 2018 , the related recorded liability was $5 million and $8 million , respectively. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees at December 31 are as follows: (Millions of dollars) 2019 2018 Caterpillar dealer performance guarantees $ 1,150 $ 1,244 Supplier consortium performance guarantees 238 527 Other guarantees 221 207 Total guarantees $ 1,609 $ 1,978 Cat Financial provides guarantees to repurchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. Cat Financial has a loan purchase agreement with the SPC that obligates Cat Financial to purchase certain loans that are not paid at maturity. Cat Financial receives a fee for providing this guarantee, which provides a source of liquidity for the SPC. Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC. As of December 31, 2019 and 2018 , the SPC’s assets of $1,453 million and $1,149 million , respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $1,452 million and $1,148 million , respectively, were primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial’s creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. Cat Financial has commitments to extend credit to customers and Caterpillar dealers through lines of credit and other pre-approved credit arrangements. Cat Financial applies the same credit policies and approval process for these commitments to extend credit as we do for other financing. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. The amount of unused commitments to extend credit to Caterpillar dealers was $11,154 million at December 31, 2019 . The amount of unused commitments to extend credit to customers was $693 million at December 31, 2019 . A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts do not represent a future cash requirement. Cat Financial generally has the right to unconditionally cancel, alter, or amend the terms of these commitments at any time. 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) 2019 2018 Warranty liability, January 1 $ 1,391 $ 1,419 Reduction in liability (payments) (903 ) (783 ) Increase in liability (new warranties) 1,053 755 Warranty liability, December 31 $ 1,541 $ 1,391

Environmental and legal matters

Environmental and legal matters	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Environmental and legal matters	22. 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 27, 2020, the Brazilian Federal Environmental Agency (“IBAMA”) issued Caterpillar Brasil Ltda a notice of violation regarding allegations around the requirements for use of imported oils at the Piracicaba, Brazil facility. We have instituted processes to address the allegations. While we are still discussing resolution of these allegations with IBAMA, the initial notice from IBAMA included a proposed fine of approximately $370,000 . We do not expect this fine or our response to address the allegations to have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity. 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 (CSARL) 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 former 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 CSARL, 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. 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 (CBL). 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 one current employee of MGE and two former employees of MGE involving the same conduct alleged by CADE. On July 8, 2019, CADE found MGE, one of its current employees and two of its former employees liable for anticompetitive conduct. CBL was dismissed from the proceeding without any finding of liability. MGE intends to appeal CADE’s findings. 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.

Segment information

Segment information	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Segment information	Segment information A. Basis for segment information Our Executive Office is comprised of a Chief Executive Officer (CEO), four Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer, General Counsel and Corporate Secretary and a Chief Human Resources Officer. The Group Presidents and CFO are accountable for a related set of end-to-end businesses that they manage. The Chief Legal Officer, General Counsel and Corporate Secretary leads the Law, Security and Public Policy Division. The Chief Human Resources Officer leads the Human Resources Organization. The CEO allocates resources and manages performance at the Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker, and operating segments are primarily based on the Group President/CFO 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 the CFO 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 one smaller operating segment that is included in the All Other operating segment. The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment. B. Description of segments We have five 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 segment: 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 asphalt pavers; backhoe loaders; compactors; cold planers; compact track and multi-terrain loaders; mini, small, medium and large track excavators; forestry excavators; feller bunchers; harvesters; knuckleboom loaders; motor graders; pipelayers; road reclaimers; site prep tractors; skidders; skid steer loaders; telehandlers; small and medium track-type tractors; track-type loaders; utility vehicles; wheel excavators; compact, small and medium wheel loaders; and related parts and work tools. Inter-segment sales are a source of revenue for this segment. Resource Industries : A segment primarily responsible for supporting customers using machinery in mining, heavy construction, quarry and aggregates, 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; autonomous ready vehicles and solutions; hard rock vehicles; longwall miners; electric rope shovels; draglines; hydraulic shovels; rotary drills; large wheel loaders; off-highway trucks; articulated trucks; wheel tractor scrapers; wheel dozers; landfill compactors; soil compactors; hard rock continuous mining systems; select work tools; machinery components 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 Oil and Gas, Power Generation, Industrial 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 turbine machinery and integrated systems and solutions 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 Caterpillar 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. The segment also earns revenues from ME&T, but the related costs are not allocated to operating segments. All Other operating segment : Primarily includes activities such as: business strategy, product management and development, manufacturing and sourcing of filters and fluids, undercarriage, ground-engaging tools, fluid transfer products, precision seals, rubber sealing and connecting components primarily for Cat products; parts distribution; integrated logistics solutions, 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; and 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 segment 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: • ME&T segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances. Beginning in 2019, operating lease right-of-use assets are included in segment assets. In 2018, the present value of future lease payments for certain ME&T operating leases was included in segment assets while the estimated financing component of the lease payments was excluded. 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. • Currency exposures for ME&T 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 reported 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 costs, with the remaining elements of net periodic benefit cost included as a methodology difference. • ME&T segment profit is determined on a pretax basis and excludes interest expense and most 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 137 to 143 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: May include costs for employee separation, long-lived asset impairments and contract terminations. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. Beginning in 2019, only certain restructuring costs are excluded from segment profit. A table, Reconciliation of Restructuring costs on page 140, has been included to illustrate how segment profit would have been impacted by the restructuring costs. See Note 25 for more information. • Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting. • Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. For example, certain costs are reported on the cash basis for segment reporting and the accrual basis for consolidated external reporting. Segment Information (Millions of dollars) Reportable Segments: External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures 2019 Construction Industries $ 22,556 $ 93 $ 22,649 $ 331 $ 3,931 $ 5,219 $ 201 Resource Industries 9,813 463 10,276 425 1,629 6,214 168 Energy & Transportation 18,485 3,612 22,097 628 3,910 8,612 613 Machinery, Energy & Transportation $ 50,854 $ 4,168 $ 55,022 $ 1,384 $ 9,470 $ 20,045 $ 982 Financial Products Segment 3,434 1 — 3,434 829 832 35,813 1,534 Total $ 54,288 $ 4,168 $ 58,456 $ 2,213 $ 10,302 $ 55,858 $ 2,516 2018 Construction Industries $ 23,116 $ 121 $ 23,237 $ 367 $ 4,174 $ 4,902 $ 266 Resource Industries 9,888 382 10,270 462 1,603 6,442 188 Energy & Transportation 18,832 3,953 22,785 640 3,938 8,386 742 Machinery, Energy & Transportation $ 51,836 $ 4,456 $ 56,292 $ 1,469 $ 9,715 $ 19,730 $ 1,196 Financial Products Segment 3,279 1 — 3,279 834 505 36,002 1,559 Total $ 55,115 $ 4,456 $ 59,571 $ 2,303 $ 10,220 $ 55,732 $ 2,755 2017 Construction Industries $ 19,133 $ 107 $ 19,240 $ 400 $ 3,255 $ 4,838 $ 228 Resource Industries 7,504 357 7,861 514 698 6,403 183 Energy & Transportation 15,964 3,418 19,382 653 2,856 7,564 527 Machinery, Energy & Transportation $ 42,601 $ 3,882 $ 46,483 $ 1,567 $ 6,809 $ 18,805 $ 938 Financial Products Segment 3,093 1 — 3,093 820 792 34,893 1,373 Total $ 45,694 $ 3,882 $ 49,576 $ 2,387 $ 7,601 $ 53,698 $ 2,311 1 Includes revenues from ME&T of $524 million , $470 million and $384 million for the years 2019, 2018 and 2017, respectively. For the years ended December 31, 2019 and 2018 , sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows: Sales and Revenues by Geographic Region (Millions of dollars) North America Latin America EAME Asia/ Pacific External Sales and Revenues 2019 Construction Industries $ 11,455 $ 1,533 $ 4,012 $ 5,556 $ 22,556 Resource Industries 3,632 1,533 1,836 2,812 $ 9,813 Energy & Transportation 8,864 1,389 4,994 3,238 $ 18,485 All Other operating segment 25 7 28 67 $ 127 Corporate Items and Eliminations (192 ) — (20 ) (14 ) (226 ) Machinery, Energy & Transportation Sales 23,784 4,462 10,850 11,659 $ 50,755 Financial Products Segment 2,235 299 408 492 3,434 1 Corporate Items and Eliminations (234 ) (51 ) (35 ) (69 ) (389 ) Financial Products Revenues 2,001 248 373 423 3,045 Consolidated Sales and Revenues $ 25,785 $ 4,710 $ 11,223 $ 12,082 $ 53,800 North America Latin America EAME Asia/ Pacific External Sales and Revenues 2018 Construction Industries $ 10,754 $ 1,479 $ 4,410 $ 6,473 $ 23,116 Resource Industries 3,357 1,647 2,217 2,667 $ 9,888 Energy & Transportation 9,685 1,331 4,934 2,882 $ 18,832 All Other operating segment 63 3 18 70 $ 154 Corporate Items and Eliminations (155 ) — (11 ) (2 ) (168 ) Machinery, Energy & Transportation Sales 23,704 4,460 11,568 12,090 $ 51,822 Financial Products Segment 2,153 281 387 458 3,279 1 Corporate Items and Eliminations (234 ) (46 ) (26 ) (73 ) (379 ) Financial Products Revenues 1,919 235 361 385 2,900 Consolidated Sales and Revenues $ 25,623 $ 4,695 $ 11,929 $ 12,475 $ 54,722 1 Includes revenues from ME&T of $524 million and $470 million in the years ended December 31, 2019 and 2018, respectively. Reconciliation of Sales and Revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2017 Total external sales and revenues from reportable segments $ 42,601 $ 3,093 $ — $ 45,694 All Other operating segment 178 — — 178 Other (103 ) 74 (381 ) 1 (410 ) Total sales and revenues $ 42,676 $ 3,167 $ (381 ) $ 45,462 1 Elimination of Financial Products revenues from ME&T. For the years ended December 31, 2019 and 2018 , Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales (Millions of dollars) 2019 2018 Oil and gas $ 5,205 $ 5,763 Power generation 4,474 4,334 Industrial 3,749 3,640 Transportation 5,057 5,095 Energy & Transportation External Sales $ 18,485 $ 18,832 Reconciliation of consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total 2019 Total profit from reportable segments $ 9,470 $ 832 $ 10,302 All Other operating segment 4 — 4 Cost centers (6 ) — (6 ) Corporate costs (602 ) (5 ) (607 ) Timing (93 ) — (93 ) Restructuring costs (163 ) (44 ) (207 ) Methodology differences: Inventory/cost of sales (19 ) — (19 ) Postretirement benefit expense (401 ) — (401 ) Stock-based compensation expense (198 ) (7 ) (205 ) Financing costs (248 ) — (248 ) Currency (175 ) — (175 ) Other income/expense methodology differences (481 ) — (481 ) Other methodology differences (107 ) 55 (52 ) Total consolidated profit before taxes $ 6,981 $ 831 $ 7,812 2018 Total profit from reportable segments $ 9,715 $ 505 $ 10,220 All Other operating segment 23 — 23 Cost centers 2 — 2 Corporate costs (610 ) — (610 ) Timing (257 ) — (257 ) Restructuring costs (370 ) (16 ) (386 ) Methodology differences: Inventory/cost of sales 51 — 51 Postretirement benefit expense (124 ) — (124 ) Stock-based compensation expense (190 ) (8 ) (198 ) Financing costs (257 ) — (257 ) Currency (219 ) — (219 ) Other income/expense methodology differences (362 ) — (362 ) Other methodology differences (86 ) 25 (61 ) Total consolidated profit before taxes $ 7,316 $ 506 $ 7,822 2017 Total profit from reportable segments $ 6,809 $ 792 $ 7,601 All Other operating segment (44 ) — (44 ) Cost centers 22 — 22 Corporate costs (633 ) — (633 ) Timing (151 ) — (151 ) Restructuring costs (1,253 ) (3 ) (1,256 ) Methodology differences: Inventory/cost of sales (77 ) — (77 ) Postretirement benefit expense (141 ) — (141 ) Stock-based compensation expense (198 ) (8 ) (206 ) Financing costs (524 ) — (524 ) Currency (218 ) — (218 ) Other income/expense methodology differences (181 ) — (181 ) Other methodology differences (97 ) (13 ) (110 ) Total consolidated profit before taxes $ 3,314 $ 768 $ 4,082 Reconciliation of Restructuring costs: As noted above, certain 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 2019 Construction Industries $ 3,931 $ (55 ) $ 3,876 Resource Industries 1,629 (56 ) 1,573 Energy & Transportation 3,910 (82 ) 3,828 Financial Products Segment 832 — 832 All Other operating segment 4 (11 ) (7 ) Total $ 10,306 $ (204 ) $ 10,102 2018 Construction Industries $ 4,174 $ (58 ) $ 4,116 Resource Industries 1,603 (191 ) 1,412 Energy & Transportation 3,938 (84 ) 3,854 Financial Products Segment 505 (2 ) 503 All Other operating segment 23 (40 ) (17 ) Total $ 10,243 $ (375 ) $ 9,868 2017 Construction Industries $ 3,255 $ (719 ) $ 2,536 Resource Industries 698 (276 ) 422 Energy & Transportation 2,856 (115 ) 2,741 Financial Products Segment 792 (3 ) 789 All Other operating segment (44 ) (39 ) (83 ) Total $ 7,557 $ (1,152 ) $ 6,405 Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2019 Total assets from reportable segments $ 20,045 $ 35,813 $ — $ 55,858 All Other operating segment 1,337 — — 1,337 Items not included in segment assets: Cash and short-term investments 7,299 — — 7,299 Intercompany receivables 758 — (758 ) — Investment in Financial Products 4,260 — (4,260 ) — Deferred income taxes 2,002 — (708 ) 1,294 Goodwill and intangible assets 4,435 — — 4,435 Property, plant and equipment – net and other assets 2,529 — — 2,529 Inventory methodology differences (2,426 ) — — (2,426 ) Liabilities included in segment assets 8,541 — — 8,541 Other (343 ) 134 (205 ) (414 ) Total assets $ 48,437 $ 35,947 $ (5,931 ) $ 78,453 2018 Total assets from reportable segments $ 19,730 $ 36,002 $ — $ 55,732 All Other operating segment 1,279 — — 1,279 Items not included in segment assets: Cash and short-term investments 6,968 — — 6,968 Intercompany receivables 1,633 — (1,633 ) — Investment in Financial Products 3,672 — (3,672 ) — Deferred income taxes 2,015 — (692 ) 1,323 Goodwill and intangible assets 4,279 — — 4,279 Property, plant and equipment – net and other assets 1,802 — — 1,802 Inventory methodology differences (2,503 ) — — (2,503 ) Liabilities included in segment assets 9,766 — — 9,766 Other (166 ) 66 (37 ) (137 ) Total assets $ 48,475 $ 36,068 $ (6,034 ) $ 78,509 Reconciliation of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total 2019 Total depreciation and amortization from reportable segments $ 1,384 $ 829 $ 2,213 Items not included in segment depreciation and amortization: All Other operating segment 210 — 210 Cost centers 136 — 136 Other (17 ) 35 18 Total depreciation and amortization $ 1,713 $ 864 $ 2,577 2018 Total depreciation and amortization from reportable segments $ 1,469 $ 834 $ 2,303 Items not included in segment depreciation and amortization: All Other operating segment 225 — 225 Cost centers 130 — 130 Other 71 37 108 Total depreciation and amortization $ 1,895 $ 871 $ 2,766 2017 Total depreciation and amortization from reportable segments $ 1,567 $ 820 $ 2,387 Items not included in segment depreciation and amortization: All Other operating segment 220 — 220 Cost centers 143 — 143 Other 86 41 127 Total depreciation and amortization $ 2,016 $ 861 $ 2,877 Reconciliation of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2019 Total capital expenditures from reportable segments $ 982 $ 1,534 $ — $ 2,516 Items not included in segment capital expenditures: All Other operating segment 131 — — 131 Cost centers 101 — — 101 Timing (11 ) — — (11 ) Other (129 ) 102 (41 ) (68 ) Total capital expenditures $ 1,074 $ 1,636 $ (41 ) $ 2,669 2018 Total capital expenditures from reportable segments $ 1,196 $ 1,559 $ — $ 2,755 Items not included in segment capital expenditures: All Other operating segment 170 — — 170 Cost centers 100 — — 100 Timing 42 — — 42 Other (287 ) 216 (80 ) (151 ) Total capital expenditures $ 1,221 $ 1,775 $ (80 ) $ 2,916 2017 Total capital expenditures from reportable segments $ 938 $ 1,373 $ — $ 2,311 Items not included in segment capital expenditures: All Other operating segment 134 — — 134 Cost centers 84 — — 84 Timing (96 ) — — (96 ) Other (144 ) 80 (33 ) (97 ) Total capital expenditures $ 916 $ 1,453 $ (33 ) $ 2,336 Enterprise-wide Disclosures: Information about Geographic Areas: Property, plant and equipment - net External sales and revenues 1 December 31, (Millions of dollars) 2019 2018 2017 2019 2018 Inside United States $ 22,806 $ 22,690 $ 18,552 $ 7,568 $ 8,152 Outside United States 30,994 32,032 26,910 5,336 5,422 Total $ 53,800 $ 54,722 $ 45,462 $ 12,904 $ 13,574 1 Sales of ME&T are based on dealer or customer location. Revenues from services provided are based on where service is rendered.

Acquisitions

Acquisitions	12 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Acquisitions	Acquisitions ECM S.p.A. On January 2, 2018, we acquired 100 percent of the equity in privately held ECM S.p.A. (ECM). Headquartered in Pistoia, Italy, ECM designs, manufactures, sells and services advanced signal systems for the rail industry. The ECM acquisition was executed to expand our presence in the international freight and transit industries through a combination of broad product offerings and strong reputation in the signaling market. The purchase price for the acquisition was $225 million , consisting of $249 million paid at closing, net of $25 million of cash acquired and $1 million of debt assumed. The transaction was financed with available cash. Tangible assets as of the acquisition date were $109 million , recorded at their fair values, and primarily included cash of $25 million , receivables of $28 million , inventories of $29 million , and property, plant and equipment of $17 million . Finite-lived intangible assets acquired of $112 million included customer relationships, developed technology and trade names. The finite lived intangible assets are being amortized on a straight-line basis over a weighted-average amortization period of approximately 13 years . Liabilities assumed as of the acquisition date were $79 million , recorded at their fair values, and primarily included accounts payable of $38 million and net deferred tax liabilities of $29 million . Goodwill of $109 million , non-deductible for income tax purposes, represented the excess of the consideration transferred over the net assets recognized and represented the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Factors that contributed to a purchase price resulting in the recognition of goodwill include ECM’s strategic fit into our rail product portfolio, the opportunity to provide a complete line-up of signaling and train control systems and the acquired assembled workforce. The results of the acquired business for the period from the acquisition date are included in the accompanying consolidated financial statements and reported in the Energy & Transportation segment in Note 23. Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results. Downer Freight Rail On January 2, 2018, we completed the acquisition of certain assets and liabilities of the Downer Freight Rail business (Downer Freight Rail). Headquartered in North Ryde, Australia, Downer Freight Rail provides a full suite of rolling stock, aftermarket parts and services throughout Australia. The acquisition was executed to strengthen our existing Rail footprint in Australia, which currently includes rolling stock maintenance facilities, as well as infrastructure and signaling facilities. The purchase price for the acquisition was $97 million . The transaction was financed with available cash. Tangible assets as of the acquisition date were $86 million , recorded at their fair values, and primarily included receivables of $23 million , inventories of $40 million , and property, plant and equipment of $15 million . Finite-lived customer relationship intangible assets acquired were $6 million . The finite lived intangible assets are being amortized on a straight-line basis over an amortization period of 15 years . Liabilities assumed as of the acquisition date were $14 million , which represented their fair values. Goodwill of $18 million

Restructuring Costs

Restructuring Costs	12 Months Ended
	Dec. 31, 2019
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 2019, 2018 and 2017 were as follows: (Millions of dollars) 2019 2018 2017 Employee separations 1 $ 48 $ 112 $ 525 Contract terminations 1 1 7 183 Long-lived asset impairments 1 65 93 346 Defined benefit plan curtailments and termination benefits 2 — (8 ) 29 Other 3 122 182 173 Total restructuring costs $ 236 $ 386 $ 1,256 1 Recognized in Other operating (income) expenses. 2 Recognized in Other income (expense). 3 Represents costs related to our restructuring programs, primarily for project management, inventory write-downs, accelerated depreciation and equipment relocation, and also LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. The restructuring costs in 2019 were primarily related to restructuring actions across the company. The restructuring costs in 2018 were primarily related to ongoing facility closures across the company. In 2017, about half of the restructuring costs were related to the closure of the facility in Gosselies, Belgium, within Construction Industries, and the remainder was related to other restructuring actions across the company. Certain restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. See Note 23 for more information. The following table summarizes the 2018 and 2019 employee separation activity: (Millions of dollars) Liability balance at December 31, 2017 $ 249 Increase in liability (separation charges) 112 Reduction in liability (payments) (276 ) Liability balance at December 31, 2018 $ 85 Increase in liability (separation charges) 48 Reduction in liability (payments) (85 ) Liability balance at December 31, 2019 $ 48 Most of the remaining liability balance as of December 31, 2019 is expected to be paid in 2020. In March 2017, Caterpillar informed Belgian authorities of the decision to proceed to a collective dismissal, which led to the closure of the Gosselies site, impacting about 2,000 employees. Production of Caterpillar products at the Gosselies site ended during the second quarter of 2017. The other operations and functions at the Gosselies site were phased out by the end of the second quarter of 2018. The program concluded in 2018, and we incurred a total of $647 million of restructuring costs (primarily in 2017) under the program. Those costs were primarily related to employee separation costs, long-lived asset impairments, and other costs which were partially offset by a LIFO inventory decrement benefit. 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 United States, additional involuntary programs throughout the company and manufacturing facility consolidations and closures. The largest action among those included in the Plan was related to our European manufacturing footprint which led to the Gosselies, Belgium, facility, closure as discussed above. We incurred $43 million , $121 million and $817 million of restructuring costs associated with these actions in 2019, 2018 and 2017, respectively. The Plan concluded in 2019, and total restructuring costs incurred since inception of the Plan were $1,831 million

Selected quarterly financial re

Selected quarterly financial results (unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial results (unaudited)	Selected quarterly financial results (unaudited) 2019 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 13,466 $ 14,432 $ 12,758 $ 13,144 Less: Revenues (742 ) (761 ) (784 ) (758 ) Sales 12,724 13,671 11,974 12,386 Cost of goods sold 9,003 9,941 8,569 9,117 Gross margin 3,721 3,730 3,405 3,269 Profit 1 $ 1,881 3 $ 1,620 $ 1,494 $ 1,098 5 Profit per common share $ 3.29 $ 2.85 $ 2.69 $ 2.00 Profit per common share–diluted 2 $ 3.25 $ 2.83 $ 2.66 $ 1.97 2018 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 12,859 $ 14,011 $ 13,510 $ 14,342 Less: Revenues (709 ) (732 ) (747 ) (712 ) Sales 12,150 13,279 12,763 13,630 Cost of goods sold 8,566 9,422 9,022 9,987 Gross margin 3,584 3,857 3,741 3,643 Profit 1 $ 1,665 $ 1,707 $ 1,727 4 $ 1,048 3,5,6 Profit per common share $ 2.78 $ 2.86 $ 2.92 $ 1.80 Profit per common share–diluted 2 $ 2.74 $ 2.82 $ 2.88 $ 1.78 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. 3 The first quarter of 2019 includes a benefit of $178 million to adjust unrecognized tax benefits due to the receipt of final regulations providing additional guidance related to the calculation of the mandatory deemed repatriation of non-U.S. earnings due to U.S. tax reform. The fourth quarter of 2018 includes a charge of $50 million due to an estimated increase in the mandatory deemed repatriation of non-U.S. earnings. 4 The third quarter of 2018 includes a benefit of $154 million due to the revised estimated impact of the write-down of U.S. net deferred tax assets to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent . The third quarter of 2018 also includes a charge of $59 million to increase the valuation allowance against deferred tax assets for prior years. See Note 6 for additional details. 5 The fourth quarter of 2019 and fourth quarter of 2018 include pre-tax pension and other postretirement benefit plan actuarial losses of $468 million and $495 million , respectively. See Note 12 for additional information on these costs. 6 The fourth quarter of 2018 includes a benefit of $63 million from reductions in the valuation allowance against U.S. state deferred tax assets. See Note 6 for additional information.

Operations and summary of sig_2

Operations and summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation, Policy	B. Basis of presentation The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method. We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE. We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the economic performance of each entity. Our maximum exposure to loss from these VIEs for which we are not the primary beneficiary was $133 million and $131 million as of December 31, 2019 and 2018 , respectively. 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. Shipping and handling costs are included in Cost of goods sold in Statement 1. Other operating (income) expenses primarily include Cat Financial’s depreciation of equipment leased to others, Insurance Services’ underwriting expenses, (gains) losses on disposal of long-lived assets, long-lived asset impairment charges, legal settlements and accruals, contract termination costs and employee separation charges. Prepaid expenses and other current assets in Statement 3 primarily include prepaid insurance, contract assets, right of return assets, prepaid and refundable income taxes, assets held for sale, core to be returned for remanufacturing, restricted cash and other short-term investments.
Inventories, Policy	C. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent and 65 percent of total inventories at December 31, 2019 and 2018 , respectively. If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,086 million and $2,009 million higher than reported at December 31, 2019 and 2018 , respectively.
Depreciation and Amortization, Policy	D. Depreciation and amortization Depreciation of plant and equipment is computed principally using accelerated methods. Depreciation on equipment leased to others, primarily for Financial Products, is computed using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2019 , 2018 and 2017 , Cat Financial depreciation on equipment leased to others was $813 million , $819 million and $810 million , respectively, and was included in Other operating (income) expenses in Statement 1. In 2019 , 2018 and 2017 , consolidated depreciation expense was $2,253 million , $2,435 million and $2,555 million , respectively. Amortization of purchased finite-lived intangibles is computed principally using the straight-line method, generally not to exceed a period of 20 years .
Foreign Currency Translation, Policy	E. Foreign currency translation The functional currency for most of our ME&T consolidated companies is the U.S. dollar. The functional currency for most of our Financial Products and affiliates accounted for under the equity method is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in Statement 1. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income (loss) in Statement 3.
Derivative Financial Instruments, Policy	F. Derivative financial instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts and commodity forward and option contracts. All derivatives are recorded at fair value. See Note 4 for more information.
Income Taxes, Policy	G. Income taxes The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 6 for further discussion.
Goodwill, Policy	H. Goodwill For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances make it more likely than not that an impairment may have occurred. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition. Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units. When changes occur in the composition of our operating segments or reporting units, goodwill is reassigned to the affected reporting units based on their relative fair values. We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis. Goodwill is reviewed for impairment utilizing either a qualitative assessment or a quantitative goodwill impairment test. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the quantitative goodwill impairment test, we compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, the difference would be recognized as an impairment loss. See Note 10 for further details.
Estimates in Financial Statements, Policy	I. Estimates in financial statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets; fair values for goodwill impairment tests; warranty liability and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes.

Sales and revenue recognition_2

Sales and revenue recognition sales and revenue recognition (Policies)	12 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue [Policy Text Block]	Sales and revenue recognition A. Sales of Machinery, Energy & Transportation Sales of ME&T are recognized when all the following criteria are satisfied: (i) a contract with an independently owned and operated dealer or an end user exists which has commercial substance; (ii) it is probable we will collect the amount charged to the dealer or end user; and (iii) we have completed our performance obligation whereby the dealer or end user has obtained control of the product. A contract with commercial substance exists once we receive and accept a purchase order under a dealer sales agreement, or once we enter into a contract with an end user. If collectibility is not probable, the sale is deferred and not recognized until collection is probable or payment is received. Control of our products typically transfers when title and risk of ownership of the product has transferred to the dealer or end user. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when the product is shipped. Products that are exported from a country for sale typically transfer title and risk of ownership at the border of the destination country. Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, used engines and related components (core) are inspected, cleaned and remanufactured. In connection with the sale of our remanufactured product to dealers, we collect a deposit that is repaid if the dealer returns an acceptable core within a specified time period. Caterpillar owns and has title to the cores when they are returned from dealers. The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and end users. Revenue is recognized pursuant to the same transfer of control criteria as ME&T sales noted above. At the time of sale, the deposit is recognized in Other current liabilities in Statement 3, and the core to be returned is recognized as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with usable cores). Upon receipt of an acceptable core, we repay the deposit and relieve the liability. The returned core asset is then transferred into inventory. In the event that the deposit is forfeited (i.e., upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. Generally, the cost of these discounts is estimated for each product by model by geographic region based on historical experience and known changes in merchandising programs. The cost of these discounts is reported as a reduction to the transaction price when the product sale is recognized. A corresponding post-sale discount reserve is accrued in Statement 3, which represents discounts we expect to pay on units sold. If discounts paid differ from those estimated, the difference is reported as a change in the transaction price. Except for replacement parts, no right of return exists on the sale of our products. We estimate replacement part returns based on historical experience and recognize a parts return asset in Prepaid expenses and other current assets in Statement 3, which represents our right to recover replacement parts we expect will be returned. We also recognize a refund liability in Other current liabilities in Statement 3 for the refund we expect to pay for returned parts. If actual replacement part returns differ from those estimated, the difference in the estimated replacement part return asset and refund liability is recognized in Cost of goods sold and Sales, respectively. Our standard dealer invoice terms are established by marketing region. Our invoice terms for end user sales are established by the responsible business unit. Payments from dealers are due shortly after the time of sale. When a sale is made to a dealer, the dealer is responsible for payment even if the product is not sold to an end user. Dealers and end users must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. In addition, Cat Financial provides wholesale inventory financing for a dealer’s purchase of inventory. Wholesale inventory receivables have varying payment terms and are included in Receivables – trade and other and Long-term receivables – trade and other in Statement 3. See Note 7 for further information. Trade receivables from dealers and end users were $7,648 million , $7,743 million and $6,399 million as of December 31, 2019 , December 31, 2018 and January 1, 2018 , respectively, and are recognized in Receivables – trade and other in Statement 3. Long-term trade receivables from dealers and end users were $693 million , $674 million and $639 million as of December 31, 2019 , December 31, 2018 and January 1, 2018 , respectively, and are recognized in Long-term receivables – trade and other in Statement 3. We establish a bad debt allowance for ME&T receivables when it becomes probable that the receivable will not be collected. Our allowance for bad debts is not significant. We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in Statement 3. Contract liabilities were $1,654 million , $1,680 million and $1,868 million as of December 31, 2019 , December 31, 2018 and January 1, 2018 , respectively. We reduce the contract liability when revenue is recognized. During 2019 , we recognized $1,171 million of revenue that was recorded as a contract liability at the beginning of 2019 . During 2018 , we recognized $1,294 million of revenue that was recorded as a contract liability at the beginning of 2018 . We have elected the practical expedient to not adjust the amount of revenue to be recognized under a contract with a dealer or end user for the effects of time value of money when the timing difference between receipt of payment and recognition of revenue is less than one year. As of December 31, 2019 , we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products. The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $6.2 billion , of which $2.4 billion is expected to be completed and revenue recognized in the twelve months following December 31, 2019 . We have elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts. Sales and other related taxes are excluded from the transaction price. Shipping and handling costs associated with outbound freight after control over a product has transferred are accounted for as a fulfillment cost and are included in Cost of goods sold. We provide a standard manufacturer’s warranty of our products at no additional cost. At the time a sale is recognized, we record estimated future warranty costs. See Note 21 for further discussion of our product warranty liabilities. See Note 23 for further disaggregated sales and revenues information. B. Revenues of Financial Products Revenues of Financial Products are generated primarily from finance revenue on finance receivables and rental payments on operating leases. Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and rental revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed, and previously suspended income is recognized, when the account becomes current and collection of remaining amounts is considered probable. See Note 7 for more information.

Derivative financial instrume_2

Derivative financial instruments and risk management (Policies)	12 Months Ended
	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Risk Management, Policy	A. Foreign currency exchange rate risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our ME&T 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 approximately five years . As of December 31, 2019 , the maximum term of these outstanding contracts was approximately 60 months . We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, 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 ME&T foreign currency contracts are undesignated. As of December 31, 2019 , $1 million of deferred net losses, net of tax, included in equity (AOCI in Statement 3), are expected to be reclassified to current earnings (Other income (expense) in Statement 1) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option 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. B. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. Our ME&T 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 and duration) of Cat Financial’s debt portfolio with the interest rate profile of our 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 ME&T 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. C. Commodity price risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw materials. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our ME&T 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.

Stock-based compensation (Table

Stock-based compensation (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule providing assumptions used in determining the fair value of stock-based awards	The following table provides the assumptions used in determining the fair value of the Option awards for the years ended December 31, 2019 , 2018 and 2017 , respectively. Grant Year 2019 2018 2017 Weighted-average dividend yield 2.6 % 2.7 % 3.4 % Weighted-average volatility 29.1 % 30.2 % 29.2 % Range of volatilities 25.1-38.7% 21.5-33.0% 22.1-33.0% Range of risk-free interest rates 2.48-2.68% 2.02-2.87% 0.81-2.35% Weighted-average expected lives 7 years 8 years 8 years
Schedule of stock-based compensation activity	Please refer to Tables I and II below for additional information on our stock-based compensation awards. TABLE I — Financial Information Related to Stock-based Compensation Stock options / SARs RSUs PRSUs Shares Weighted- Average Exercise Price Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2019 17,841,669 $ 91.93 1,566,070 $ 112.99 735,299 $ 115.18 Granted to officers and key employees 1 1,499,524 $ 138.35 687,294 $ 138.61 359,122 $ 138.67 Exercised (4,808,237 ) $ 83.81 — $ — — $ — Vested — $ — (820,927 ) $ 99.76 (399,811 ) $ 95.66 Forfeited / expired (67,962 ) $ 123.36 (63,234 ) $ 133.39 (24,495 ) $ 125.89 Outstanding at December 31, 2019 14,464,994 $ 99.29 1,369,203 $ 132.88 670,115 $ 144.46 Exercisable at December 31, 2019 11,154,215 $ 89.84 Stock options/SARs outstanding and exercisable as of December 31, 2019: Outstanding Exercisable Exercise Prices Shares Outstanding at 12/31/19 Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Aggregate Intrinsic Value 2 Shares Outstanding at 12/31/19 Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Aggregate Intrinsic Value 2 $57.85-83.00 5,775,829 5.52 $ 78.64 $ 399 5,775,829 5.52 $ 78.64 $ 399 $89.75-96.31 4,680,238 5.38 $ 94.56 249 3,833,786 4.96 $ 94.31 205 $102.13-110.09 1,052,650 1.75 $ 106.48 43 1,052,650 1.75 $ 106.48 43 $138.35-138.51 1,496,071 9.29 $ 138.35 14 5,119 8.71 $ 138.51 — $141.32-151.12 1,460,206 8.30 $ 150.97 — 486,831 8.30 $ 150.97 — 14,464,994 $ 99.29 $ 705 11,154,215 $ 89.84 $ 647 1 No SARs were granted during the year ended December 31, 2019 . 2 The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2019 , for awards with market price greater than the exercise price. Amounts are in millions of dollars.
Schedule of financial information related to stock-based compensation	TABLE II— Additional Stock-based Award Information (Dollars in millions except per share data) 2019 2018 2017 Stock options/SARs activity: Weighted-average fair value per share of stock awards granted $ 40.98 $ 46.09 $ 25.01 Intrinsic value of stock awards exercised $ 264 $ 348 $ 504 Fair value of stock awards vested 1 $ 100 $ 86 $ 191 Cash received from stock awards exercised $ 298 $ 370 $ 629 RSUs activity: Weighted-average fair value per share of stock awards granted $ 138.61 $ 150.58 $ 90.11 Fair value of stock awards vested 2 $ 110 $ 180 $ 189 PRSUs activity: Weighted-average fair value per share of stock awards granted $ 138.67 $ 150.98 $ 86.78 Fair value of stock awards vested 2 $ 59 $ 70 $ 20 1 Based on the grant date fair value. 2 Based on the underlying stock’s closing market price on the vesting date.

Operations and summary of sig_3

Operations and summary of significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	The cumulative effect of initially applying the new lease guidance to our consolidated financial statements on January 1, 2019 was as follows: Consolidated Statement of Financial Position (Millions of dollars) Balance as of December 31, 2018 Cumulative Impact from Adopting New Lease Guidance Balance as of January 1, 2019 Assets Prepaid expenses and other current assets $ 1,765 $ (17 ) $ 1,748 Property, plant and equipment - net $ 13,574 $ (26 ) $ 13,548 Noncurrent deferred and refundable income taxes $ 1,439 $ (77 ) $ 1,362 Other assets $ 2,332 $ 713 $ 3,045 Liabilities Accrued expenses $ 3,573 $ (27 ) $ 3,546 Other current liabilities $ 1,919 $ 209 $ 2,128 Long-term debt due after one year Machinery, Energy & Transportation $ 8,005 $ (362 ) $ 7,643 Other liabilities $ 3,756 $ 538 $ 4,294 Shareholders ’ equity Profit employed in the business $ 30,427 $ 235 $ 30,662

Derivative financial instrume_3

Derivative financial instruments and risk management (Tables)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Financial Position	The location and fair value of derivative instruments reported in Statement 3 are as follows: Consolidated Statement of Financial Position Location Asset (Liability) Fair Value (Millions of dollars) Years ended December 31, 2019 2018 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 18 $ 16 Machinery, Energy & Transportation Long-term receivables — trade and other 9 — Machinery, Energy & Transportation Accrued expenses (20 ) (26 ) Machinery, Energy & Transportation Other liabilities — (9 ) Financial Products Receivables — trade and other 54 53 Financial Products Long-term receivables — trade and other 13 35 Financial Products Accrued expenses (3 ) (9 ) Interest rate contracts Financial Products Receivables — trade and other — 1 Financial Products Long-term receivables — trade and other 5 3 Financial Products Accrued expenses (25 ) (40 ) $ 51 $ 24 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 1 $ 2 Machinery, Energy & Transportation Accrued expenses — (21 ) Financial Products Receivables — trade and other 7 15 Financial Products Long-term receivables — trade and other 5 5 Financial Products Accrued expenses (22 ) (14 ) Commodity contracts Machinery, Energy & Transportation Receivables — trade and other 4 1 Machinery, Energy & Transportation Accrued expenses (1 ) (31 ) $ (6 ) $ (43 )
Total notional amounts of derivative instruments	The total notional amounts of the derivative instruments are as follows: Years ended December 31, (Millions of dollars) 2019 2018 Machinery, Energy & Transportation $ 2,563 $ 1,834 Financial Products $ 8,931 $ 10,210
Effect of derivatives designated as hedging instruments on Consolidated Results of Operations	The effect of derivatives designated as hedging instruments on Statement 1 is as follows: Cash Flow Hedges (Millions of dollars) Year ended December 31, 2019 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI Amount of the line items in Statement 1 Foreign exchange contracts Machinery, Energy & Transportation $ 34 Sales of Machinery, Energy & Transportation $ 11 $ 50,755 Cost of goods sold (3 ) 36,630 Financial Products 93 Interest expense of Financial Products 33 754 Other income (expense) 37 (57 ) Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (4 ) 421 Financial Products (70 ) Interest expense of Financial Products (8 ) 754 $ 57 $ 66 Year ended December 31, 2018 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (47 ) Other income (expense) $ (33 ) $ — Financial Products 165 Other income (expense) 148 — Interest expense of Financial Products 19 — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (3 ) — Financial Products (38 ) Interest expense of Financial Products — — $ 80 $ 131 $ — Year ended December 31, 2017 Recognized in Earnings Amount of Classification of Gains (Losses) Amount of Gains (Losses) Reclassified from AOCI to Earnings Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ 72 Other income (expense) $ (40 ) $ — Financial Products (77 ) Other income (expense) (81 ) — Interest expense of Financial Products 6 — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (9 ) — Financial Products — Interest expense of Financial Products 3 — $ (5 ) $ (121 ) $ —
Effect of derivatives not designated as hedging instruments on the Consolidated Results of Operations	The effect of derivatives not designated as hedging instruments on Statement 1 is as follows: Years ended December 31, (Millions of dollars) Classification of Gains (Losses) 2019 2018 2017 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 13 $ (54 ) $ 72 Financial Products Other income (expense) (37 ) 19 9 Commodity contracts Machinery, Energy & Transportation Other income (expense) 18 (39 ) 30 $ (6 ) $ (74 ) $ 111
Effect of net settlement provisions of the master netting agreements on derivative assets	The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event is as follows: December 31, 2019 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 $ 32 $ — $ 32 $ (13 ) $ — $ 19 Financial Products 84 — 84 (21 ) — 63 Total $ 116 $ — $ 116 $ (34 ) $ — $ 82	December 31, 2018 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 $ 19 $ — $ 19 $ (19 ) $ — $ — Financial Products 112 — 112 (34 ) — 78 Total $ 131 $ — $ 131 $ (53 ) $ — $ 78
Effect of net settlement provisions of the master netting agreements on derivative liabilities	December 31, 2019 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 $ (21 ) $ — $ (21 ) $ 13 $ — $ (8 ) Financial Products (50 ) — (50 ) 21 — (29 ) Total $ (71 ) $ — $ (71 ) $ 34 $ — $ (37 )	December 31, 2018 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 $ (87 ) $ — $ (87 ) $ 19 $ — $ (68 ) Financial Products (63 ) — (63 ) 34 — (29 ) Total $ (150 ) $ — $ (150 ) $ 53 $ — $ (97 )

Other income (expense) (Tables)

Other income (expense) (Tables)	12 Months Ended
	Dec. 31, 2019
Other Income and Expenses [Abstract]
Other income (expense)	Years ended December 31, (Millions of dollars) 2019 2018 2017 Investment and interest income $ 202 $ 195 $ 122 Foreign exchange gains (losses) 1 (67 ) (201 ) (213 ) License fee income 121 125 100 Gains (losses) on sale of securities and affiliated companies 30 4 187 2 Net periodic pension and OPEB income (cost), excluding service cost (363 ) (118 ) (54 ) Gains (losses) on equity securities measured at fair value 3 35 (33 ) — Miscellaneous income (loss) (15 ) (39 ) 11 Total $ (57 ) $ (67 ) $ 153 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 4 for further details. 2 Includes pretax gain of $85 million related to the sale of Caterpillar ’ s equity interest in Iron Planet Holdings Inc. 3 Beginning January 1, 2018, the unrealized gains and losses arising from the revaluation of equity securities are included in Other income (expense) in Statement 1.

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Reconciliation of the U.S. federal statutory rate to effective rate	Reconciliation of the U.S. federal statutory rate to effective rate: Years ended December 31, (Millions of dollars) 2019 2018 2017 Taxes at U.S. statutory rate $ 1,641 21.0 % $ 1,643 21.0 % $ 1,429 35.0 % (Decreases) increases resulting from: Non-U.S. subsidiaries taxed at other than the U.S. rate 365 4.7 % 282 3.6 % (282 ) (6.9 )% State and local taxes, net of federal 1 59 0.8 % 22 0.3 % 27 0.7 % Interest and penalties, net of tax 34 0.4 % 33 0.4 % 28 0.7 % U.S. tax incentives (149 ) (1.9 )% (106 ) (1.3 )% (52 ) (1.3 )% Net excess tax benefits from stock-based compensation (41 ) (0.5 )% (56 ) (0.7 )% (64 ) (1.6 )% Mandatory deemed repatriation of non-U.S. earnings (178 ) (2.3 )% 50 0.7 % 1,775 43.5 % U.S. deferred tax rate change — — % (154 ) (2.0 )% 596 14.6 % Valuation allowances — — % (29 ) (0.4 )% (111 ) (2.7 )% Other—net 15 0.2 % 13 0.1 % (7 ) (0.2 )% Provision (benefit) for income taxes $ 1,746 22.4 % $ 1,698 21.7 % $ 3,339 81.8 % 1 Excludes amounts included in valuation allowances and mandatory deemed repatriation of non-U.S. earnings.
Components of profit (loss) before taxes	The components of profit (loss) before taxes were: Years ended December 31, (Millions of dollars) 2019 2018 2017 U.S. $ 2,888 $ 2,131 $ 240 Non-U.S. 4,924 5,691 3,842 $ 7,812 $ 7,822 $ 4,082
Components of the provision (benefit) for income taxes	The components of the provision (benefit) for income taxes were: Years ended December 31, (Millions of dollars) 2019 2018 2017 Current tax provision (benefit): U.S. 1 $ 405 $ 179 $ 963 Non-U.S. 1,261 1,291 1,124 State (U.S.) 52 8 39 1,718 1,478 2,126 Deferred tax provision (benefit): U.S. 1 17 298 1,385 Non-U.S. (7 ) 4 (17 ) State (U.S.) 18 (82 ) (155 ) 28 220 1,213 Total provision (benefit) for income taxes $ 1,746 $ 1,698 $ 3,339 1 Includes U.S. taxes related to non-U.S. earnings. We account for U.S. taxes on global intangible low-taxed income as a period cost.
Deferred income tax assets and liabilities	The amount of deferred income taxes at December 31, included on the following lines in Statement 3, are as follows: December 31, (Millions of dollars) 2019 2018 Assets: Noncurrent deferred and refundable income taxes $ 1,324 $ 1,363 Liabilities: Other liabilities 414 331 Deferred income taxes—net $ 910 $ 1,032 The components of deferred tax assets and liabilities were: December 31, (Millions of dollars) 2019 2018 Deferred income tax assets: Tax carryforwards $ 1,218 $ 1,312 Postemployment benefits other than pensions 876 793 Pension 445 785 Warranty reserves 263 237 Research expenditures 219 — Allowance for credit losses 171 155 Post sale discounts 200 158 Other employee compensation and benefits 197 186 Lease obligations 157 — Stock-based compensation 107 121 Other—net 250 298 4,103 4,045 Deferred income tax liabilities: Capital and intangible assets, including lease basis differences (1,574 ) (1,381 ) Bond discount (122 ) (127 ) Translation (194 ) (190 ) Other outside basis differences (257 ) (271 ) Undistributed profits of non-U.S. subsidiaries (118 ) (129 ) (2,265 ) (2,098 ) Valuation allowance for deferred tax assets (928 ) (915 ) Deferred income taxes—net $ 910 $ 1,032
Summary of net operating loss carryforwards	At December 31, 2019 , amounts and expiration dates of net operating loss and interest carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2020 2021 2022 2023-2025 2026-2040 Unlimited Total $ 104 $ 53 $ 81 $ 59 $ 451 $ 3,627 $ 4,375
Reconciliation of unrecognized tax benefits	Reconciliation of unrecognized tax benefits: 1 Years ended December 31, (Millions of dollars) 2019 2018 2017 Balance at January 1, $ 1,796 $ 1,286 $ 1,032 Additions for tax positions related to current year 72 61 270 Additions for tax positions related to prior years 112 461 20 Reductions for tax positions related to prior years (201 ) (5 ) (27 ) Reductions for settlements 2 — (6 ) (9 ) Reductions for expiration of statute of limitations (1 ) (1 ) — Balance at December 31, $ 1,778 $ 1,796 $ 1,286 Amount that, if recognized, would impact the effective tax rate $ 1,616 $ 1,716 $ 1,209 1 Foreign currency impacts are included within each line as applicable. 2 Includes cash payment or other reduction of assets to settle liability.

Cat Financial Financing Activ_2

Cat Financial Financing Activities (Tables)	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Contractual maturities of outstanding wholesale inventory receivables	Contractual maturities of outstanding wholesale inventory receivables: (Millions of dollars) December 31, 2019 Amounts Due In Wholesale Loans Wholesale Leases Total 2020 $ 630 $ 65 $ 695 2021 235 48 283 2022 166 32 198 2023 61 22 83 2024 27 14 41 Thereafter 21 16 37 Total 1,140 197 1,337 Guaranteed residual value 1 25 50 75 Unguaranteed residual value — 33 33 Less: Unearned income (10 ) (34 ) (44 ) Total $ 1,155 $ 246 $ 1,401 1 For Wholesale loans, represents residual value on failed sale leasebacks.
Contractual maturities of outstanding finance receivables	Finance receivables are receivables of Cat Financial and are reported in Statement 3 net of an allowance for credit losses. Contractual maturities of outstanding finance receivables: (Millions of dollars) December 31, 2019 Amounts Due In Retail Loans Retail Leases Total 2020 $ 6,280 $ 3,134 $ 9,414 2021 3,582 2,005 5,587 2022 2,610 1,076 3,686 2023 1,634 472 2,106 2024 622 182 804 Thereafter 417 62 479 Total 15,145 6,931 22,076 Guaranteed residual value 1 53 390 443 Unguaranteed residual value — 798 798 Less: Unearned income (265 ) (655 ) (920 ) Total $ 14,933 $ 7,464 $ 22,397 1 For Retail loans, represents residual value on failed sale leasebacks.
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2019 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 486 $ 21 $ 507 Receivables written off (281 ) — (281 ) Recoveries on receivables previously written off 44 — 44 Provision for credit losses 138 24 162 Other (12 ) — (12 ) Balance at end of year $ 375 $ 45 $ 420 Individually evaluated for impairment $ 178 $ 39 $ 217 Collectively evaluated for impairment 197 6 203 Ending Balance $ 375 $ 45 $ 420 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 594 $ 78 $ 672 Collectively evaluated for impairment 18,093 3,632 21,725 Ending Balance $ 18,687 $ 3,710 $ 22,397 (Millions of dollars) December 31, 2018 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 353 $ 9 $ 362 Receivables written off (235 ) — (235 ) Recoveries on receivables previously written off 46 — 46 Provision for credit losses 337 12 349 Other (15 ) — (15 ) Balance at end of year $ 486 $ 21 $ 507 Individually evaluated for impairment $ 288 $ 14 $ 302 Collectively evaluated for impairment 198 7 205 Ending Balance $ 486 $ 21 $ 507 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 858 $ 78 $ 936 Collectively evaluated for impairment 18,152 3,338 21,490 Ending Balance $ 19,010 $ 3,416 $ 22,426
Aging related to loans and finance leases	In determining past-due status, Cat Financial considers the entire recorded investment in finance receivable past due when any installment is over 30 days past due. The tables below summarize the recorded investment of finance receivables by aging category. (Millions of dollars) December 31, 2019 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 72 $ 23 $ 55 $ 150 $ 8,038 $ 8,188 $ 15 EAME 30 31 141 202 2,955 3,157 4 Asia Pacific 40 14 29 83 2,440 2,523 8 Mining 5 — 19 24 1,851 1,875 — Latin America 41 23 80 144 1,136 1,280 2 Caterpillar Power Finance 10 10 225 245 1,419 1,664 — Dealer North America — — — — 2,136 2,136 — EAME — — — — 342 342 — Asia Pacific — — — — 437 437 — Mining — — — — 4 4 — Latin America — — 78 78 712 790 — Caterpillar Power Finance — — — — 1 1 — Total $ 198 $ 101 $ 627 $ 926 $ 21,471 $ 22,397 $ 29 (Millions of dollars) December 31, 2018 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables 91+ Still Accruing Customer North America $ 65 $ 18 $ 84 $ 167 $ 7,825 $ 7,992 $ 14 EAME 19 9 153 181 2,850 3,031 5 Asia Pacific 24 9 8 41 2,409 2,450 5 Mining 28 1 9 38 1,642 1,680 — Latin America 38 29 71 138 1,421 1,559 — Caterpillar Power Finance 10 1 384 395 1,903 2,298 — Dealer North America — — — — 1,895 1,895 — EAME — — — — 333 333 — Asia Pacific — — — — 466 466 — Mining — — — — 4 4 — Latin America — — 78 78 638 716 — Caterpillar Power Finance — — — — 2 2 — Total $ 184 $ 67 $ 787 $ 1,038 $ 21,388 $ 22,426 $ 24
Impaired finance receivables	Cat Financial’s recorded investment in impaired finance receivables and the related unpaid principal balances and allowances for the Customer portfolio segment were as follows: December 31, 2019 December 31, 2018 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Unpaid Principal Balance Related Impaired Finance Receivables With No Allowance Recorded North America $ 6 $ 6 $ — $ 10 $ 10 $ — EAME — — — 1 1 — Asia Pacific — — — — — — Mining 22 22 — 33 33 — Latin America 8 8 — 29 29 — Caterpillar Power Finance 58 58 — 69 83 — Total $ 94 $ 94 $ — $ 142 $ 156 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 30 $ 30 $ 11 $ 40 $ 41 $ 14 EAME 61 61 29 92 92 57 Asia Pacific 8 8 2 4 4 2 Mining 37 36 9 56 55 26 Latin America 58 58 20 75 75 25 Caterpillar Power Finance 306 319 107 449 455 164 Total $ 500 $ 512 $ 178 $ 716 $ 722 $ 288 Total Impaired Finance Receivables North America $ 36 $ 36 $ 11 $ 50 $ 51 $ 14 EAME 61 61 29 93 93 57 Asia Pacific 8 8 2 4 4 2 Mining 59 58 9 89 88 26 Latin America 66 66 20 104 104 25 Caterpillar Power Finance 364 377 107 518 538 164 Total $ 594 $ 606 $ 178 $ 858 $ 878 $ 288 Years ended December 31, 2019 2018 2017 (Millions of dollars) Average Recorded Investment Interest Average Recorded Investment Interest Average Recorded Investment Interest Impaired Finance Receivables With No Allowance Recorded North America $ 9 $ — $ 16 $ 1 $ 13 $ 1 EAME 6 — 14 — 48 1 Asia Pacific — — 27 3 24 2 Mining 27 1 57 2 126 7 Latin America 21 1 38 2 64 3 Caterpillar Power Finance 54 3 130 7 221 9 Total $ 117 $ 5 $ 282 $ 15 $ 496 $ 23 Impaired Finance Receivables With An Allowance Recorded North America $ 34 $ 2 $ 49 $ 2 $ 49 $ 1 EAME 81 2 53 2 6 — Asia Pacific 9 1 4 — 31 2 Mining 48 2 46 3 — — Latin America 72 5 67 3 99 4 Caterpillar Power Finance 396 11 378 12 180 6 Total $ 640 $ 23 $ 597 $ 22 $ 365 $ 13 Total Impaired Finance Receivables North America $ 43 $ 2 $ 65 $ 3 $ 62 $ 2 EAME 87 2 67 2 54 1 Asia Pacific 9 1 31 3 55 4 Mining 75 3 103 5 126 7 Latin America 93 6 105 5 163 7 Caterpillar Power Finance 450 14 508 19 401 15 Total $ 757 $ 28 $ 879 $ 37 $ 861 $ 36
Investment in loans and finance leases on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status was as follows: December 31, (Millions of dollars) 2019 2018 North America $ 44 $ 77 EAME 165 154 Asia Pacific 21 4 Mining 47 50 Latin America 89 106 Caterpillar Power Finance 361 416 Total $ 727 $ 807
TDR tables	Cat Financial’s recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2019 , 2018 and 2017 were as follows: (Millions of dollars) Year ended December 31, 2019 Number of Contracts Pre-TDR Post-TDR North America 15 $ 11 $ 11 EAME 19 17 17 Asia Pacific — — — Mining 2 8 8 Latin America 5 5 3 Caterpillar Power Finance 21 168 165 Total 62 $ 209 $ 204 Year ended December 31, 2018 Number of Contracts Pre-TDR Post-TDR North America 38 $ 21 $ 21 EAME — — — Asia Pacific — — — Mining 1 29 29 Latin America 1 3 3 Caterpillar Power Finance 12 133 99 Total 52 $ 186 $ 152 Year ended December 31, 2017 Number of Contracts Pre-TDR Post-TDR North America 43 $ 34 $ 35 EAME 4 1 1 Asia Pacific 10 39 31 Mining 2 57 56 Latin America 17 26 27 Caterpillar Power Finance 1 68 422 407 Total 144 $ 579 $ 557 1 In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2019 , 2018 and 2017 which had been modified within twelve months prior to the default date, were as follows: (Millions of dollars) Year ended December 31, 2019 Year ended December 31, 2018 Year ended December 31, 2017 Number Post-TDR Number Post-TDR Number Post-TDR North America 11 $ 5 10 $ 10 4 $ 3 EAME — — — — 1 — Asia Pacific — — — — 4 1 Latin America 1 — — 3 1 243 17 Caterpillar Power Finance 1 10 3 33 — — Total 12 $ 15 16 $ 44 252 $ 21 1 In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories (principally using the LIFO method) are comprised of the following: December 31, (Millions of dollars) 2019 2018 Raw materials $ 4,263 $ 4,477 Work-in-process 1,147 1,259 Finished goods 5,598 5,562 Supplies 258 231 Total inventories $ 11,266 $ 11,529

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Property, plant and equipment	December 31, (Millions of dollars) Useful Lives (Years) 2019 2018 Land — $ 664 $ 671 Buildings and land improvements 20-45 6,710 6,977 Machinery, equipment and other 2-10 13,287 13,733 Software 3-7 1,728 1,703 Equipment leased to others 1-7 6,208 6,015 Construction-in-process — 620 682 Total property, plant and equipment, at cost 29,217 29,781 Less: Accumulated depreciation (16,313 ) (16,207 ) Property, plant and equipment–net $ 12,904 $ 13,574

Intangible assets and goodwill

Intangible assets and goodwill (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets are comprised of the following: December 31, 2019 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,450 $ (1,406 ) $ 1,044 Intellectual property 12 1,510 (1,055 ) 455 Other 13 191 (125 ) 66 Total finite-lived intangible assets 14 $ 4,151 $ (2,586 ) $ 1,565 December 31, 2018 Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,463 $ (1,249 ) $ 1,214 Intellectual property 11 1,557 (965 ) 592 Other 13 199 (108 ) 91 Total finite-lived intangible assets 14 $ 4,219 $ (2,322 ) $ 1,897
Expected amortization expense related to intangible assets	As of December 31, 2019 , amortization expense related to intangible assets is expected to be: (Millions of dollars) 2020 2021 2022 2023 2024 Thereafter $310 $292 $273 $215 $158 $317
Goodwill	The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2019 and 2018 were as follows: (Millions of dollars) December 31, 2018 Acquisitions Other Adjustments 1 December 31, 2019 Construction Industries Goodwill $ 304 $ — $ 2 $ 306 Impairments (22 ) — — (22 ) Net goodwill 282 — 2 284 Resource Industries Goodwill 4,172 — (16 ) 4,156 Impairments (1,175 ) — — (1,175 ) Net goodwill 2,997 — (16 ) 2,981 Energy & Transportation Goodwill 2,882 — (7 ) 2,875 All Other 2 Goodwill 56 — — 56 Consolidated total Goodwill 7,414 — (21 ) 7,393 Impairments (1,197 ) — — (1,197 ) Net goodwill $ 6,217 $ — $ (21 ) $ 6,196 December 31, 2017 Acquisitions Other Adjustments 1 December 31, 2018 Construction Industries Goodwill $ 305 $ — $ (1 ) $ 304 Impairments (22 ) — — (22 ) Net goodwill 283 — (1 ) 282 Resource Industries Goodwill 4,232 — (60 ) 4,172 Impairments (1,175 ) — — (1,175 ) Net goodwill 3,057 — (60 ) 2,997 Energy & Transportation Goodwill 2,806 127 (51 ) 2,882 All Other 2 Goodwill 54 — 2 56 Consolidated total Goodwill 7,397 127 (110 ) 7,414 Impairments (1,197 ) — — (1,197 ) Net goodwill $ 6,200 $ 127 $ (110 ) $ 6,217 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segment (See Note 23).

Investments in debt and equit_2

Investments in debt and equity securities (Tables)	12 Months Ended
	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Schedule of available-for-sale securities	The cost basis and fair value of debt securities with unrealized gains and losses included in equity (Accumulated other comprehensive income (loss) in Statement 3) were as follows: December 31, 2019 December 31, 2018 (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 54 — 54 42 — 42 Corporate bonds Corporate bonds 836 20 856 735 (15 ) 720 Asset-backed securities 62 — 62 63 — 63 Mortgage-backed debt securities U.S. governmental agency 327 4 331 301 (4 ) 297 Residential 6 — 6 7 — 7 Commercial 46 1 47 14 (1 ) 13 Total debt securities $ 1,340 $ 25 $ 1,365 $ 1,171 $ (20 ) $ 1,151
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 December 31, 2019 , by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. December 31, 2019 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 80 $ 80 Due after one year through five years 701 715 Due after five years through ten years 148 153 Due after ten years 32 33 U.S. governmental agency mortgage-backed securities 327 331 Residential mortgage-backed securities 6 6 Commercial mortgage-backed securities 46 47 Total debt securities – available-for-sale $ 1,340 $ 1,365
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities	Sales of Securities: Years Ended December 31, (Millions of dollars) 2019 1 2018 1 2017 Proceeds from the sale of available-for-sale securities $ 260 $ 247 $ 930 Gross gains from the sale of available-for-sale securities $ 1 $ — $ 109 Gross losses from the sale of available-for-sale securities $ 1 $ — $ 5 1 Beginning January 1, 2018, equity securities are no longer classified as available-for-sale securities.

Postemployment benefit plans (T

Postemployment benefit plans (Tables)	12 Months Ended
	Dec. 31, 2019
Retirement Benefits [Abstract]
Schedule of assumptions used to determine benefit obligation	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits 2019 2018 2019 2018 2019 2018 Weighted-average assumptions used to determine benefit obligation, end of year: Discount rate 3.2 % 4.2 % 1.9 % 2.5 % 3.2 % 4.2 % Rate of compensation increase 1 — % 4.0 % 2.0 % 3.0 % 4.0 % 4.0 % 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly this assumption is no longer applicable.
Schedule of changes in projected benefit obligations	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2019 2018 2019 2018 2019 2018 Accumulated benefit obligation, end of year $ 17,773 $ 15,877 $ 4,502 $ 4,038 Change in benefit obligation: Benefit obligation, beginning of year $ 15,953 $ 17,326 $ 4,215 $ 4,606 $ 3,649 $ 4,002 Service cost 115 125 80 89 80 83 Interest cost 600 534 94 96 136 125 Plan amendments — — (5 ) 26 8 (25 ) Actuarial losses (gains) 2,090 (1,058 ) 424 (88 ) 350 (195 ) Foreign currency exchange rates — — 95 (205 ) (1 ) (28 ) Participant contributions — — 7 6 46 51 Benefits paid - gross (982 ) (971 ) (237 ) (277 ) (316 ) (369 ) Less: federal subsidy on benefits paid — — — — 9 7 Curtailments, settlements and termination benefits (3 ) (3 ) (7 ) (38 ) (1 ) (2 ) Benefit obligation, end of year $ 17,773 $ 15,953 $ 4,666 $ 4,215 $ 3,960 $ 3,649 Change in plan assets: Fair value of plan assets, beginning of year $ 12,697 $ 13,416 $ 4,025 $ 4,305 $ 328 $ 504 Actual return on plan assets 2,740 (784 ) 482 13 71 (5 ) Foreign currency exchange rates — — 105 (187 ) — — Company contributions 1,542 1,039 143 165 127 147 Participant contributions — — 7 6 46 51 Benefits paid (982 ) (971 ) (237 ) (277 ) (316 ) (369 ) Settlements and termination benefits (3 ) (3 ) — — (1 ) — Fair value of plan assets, end of year $ 15,994 $ 12,697 $ 4,525 $ 4,025 $ 255 $ 328 Over (under) funded status $ (1,779 ) $ (3,256 ) $ (141 ) $ (190 ) $ (3,705 ) $ (3,321 ) Components of net amount recognized in financial position: Other assets (non-current asset) $ 219 $ 9 $ 485 $ 442 $ — $ — Accrued wages, salaries and employee benefits (current liability) (42 ) (40 ) (19 ) (20 ) (161 ) (173 ) Liability for postemployment benefits (non-current liability) 1 (1,956 ) (3,225 ) (607 ) (612 ) (3,544 ) (3,148 ) Net liability recognized $ (1,779 ) $ (3,256 ) $ (141 ) $ (190 ) $ (3,705 ) $ (3,321 ) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Prior service cost (credit) $ — $ — $ 16 $ 20 $ (78 ) $ (126 ) 1 The Liability for postemployment benefits reported in Statement 3 includes our liability for other postemployment benefits and our liability for non-qualified deferred compensation plans. For 2019, these liabilities were $60 million and $432 million , respectively. For 2018, these liabilities were $119 million and $351 million , respectively.
Change in plan assets	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2019 2018 2019 2018 2019 2018 Accumulated benefit obligation, end of year $ 17,773 $ 15,877 $ 4,502 $ 4,038 Change in benefit obligation: Benefit obligation, beginning of year $ 15,953 $ 17,326 $ 4,215 $ 4,606 $ 3,649 $ 4,002 Service cost 115 125 80 89 80 83 Interest cost 600 534 94 96 136 125 Plan amendments — — (5 ) 26 8 (25 ) Actuarial losses (gains) 2,090 (1,058 ) 424 (88 ) 350 (195 ) Foreign currency exchange rates — — 95 (205 ) (1 ) (28 ) Participant contributions — — 7 6 46 51 Benefits paid - gross (982 ) (971 ) (237 ) (277 ) (316 ) (369 ) Less: federal subsidy on benefits paid — — — — 9 7 Curtailments, settlements and termination benefits (3 ) (3 ) (7 ) (38 ) (1 ) (2 ) Benefit obligation, end of year $ 17,773 $ 15,953 $ 4,666 $ 4,215 $ 3,960 $ 3,649 Change in plan assets: Fair value of plan assets, beginning of year $ 12,697 $ 13,416 $ 4,025 $ 4,305 $ 328 $ 504 Actual return on plan assets 2,740 (784 ) 482 13 71 (5 ) Foreign currency exchange rates — — 105 (187 ) — — Company contributions 1,542 1,039 143 165 127 147 Participant contributions — — 7 6 46 51 Benefits paid (982 ) (971 ) (237 ) (277 ) (316 ) (369 ) Settlements and termination benefits (3 ) (3 ) — — (1 ) — Fair value of plan assets, end of year $ 15,994 $ 12,697 $ 4,525 $ 4,025 $ 255 $ 328 Over (under) funded status $ (1,779 ) $ (3,256 ) $ (141 ) $ (190 ) $ (3,705 ) $ (3,321 ) Components of net amount recognized in financial position: Other assets (non-current asset) $ 219 $ 9 $ 485 $ 442 $ — $ — Accrued wages, salaries and employee benefits (current liability) (42 ) (40 ) (19 ) (20 ) (161 ) (173 ) Liability for postemployment benefits (non-current liability) 1 (1,956 ) (3,225 ) (607 ) (612 ) (3,544 ) (3,148 ) Net liability recognized $ (1,779 ) $ (3,256 ) $ (141 ) $ (190 ) $ (3,705 ) $ (3,321 ) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Prior service cost (credit) $ — $ — $ 16 $ 20 $ (78 ) $ (126 ) 1 The Liability for postemployment benefits reported in Statement 3 includes our liability for other postemployment benefits and our liability for non-qualified deferred compensation plans. For 2019, these liabilities were $60 million and $432 million , respectively. For 2018, these liabilities were $119 million and $351 million , respectively.
Defined benefit plan funded status, components of net amount recognized in financial position and accumulated other comprehensive income	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2019 2018 2019 2018 2019 2018 Accumulated benefit obligation, end of year $ 17,773 $ 15,877 $ 4,502 $ 4,038 Change in benefit obligation: Benefit obligation, beginning of year $ 15,953 $ 17,326 $ 4,215 $ 4,606 $ 3,649 $ 4,002 Service cost 115 125 80 89 80 83 Interest cost 600 534 94 96 136 125 Plan amendments — — (5 ) 26 8 (25 ) Actuarial losses (gains) 2,090 (1,058 ) 424 (88 ) 350 (195 ) Foreign currency exchange rates — — 95 (205 ) (1 ) (28 ) Participant contributions — — 7 6 46 51 Benefits paid - gross (982 ) (971 ) (237 ) (277 ) (316 ) (369 ) Less: federal subsidy on benefits paid — — — — 9 7 Curtailments, settlements and termination benefits (3 ) (3 ) (7 ) (38 ) (1 ) (2 ) Benefit obligation, end of year $ 17,773 $ 15,953 $ 4,666 $ 4,215 $ 3,960 $ 3,649 Change in plan assets: Fair value of plan assets, beginning of year $ 12,697 $ 13,416 $ 4,025 $ 4,305 $ 328 $ 504 Actual return on plan assets 2,740 (784 ) 482 13 71 (5 ) Foreign currency exchange rates — — 105 (187 ) — — Company contributions 1,542 1,039 143 165 127 147 Participant contributions — — 7 6 46 51 Benefits paid (982 ) (971 ) (237 ) (277 ) (316 ) (369 ) Settlements and termination benefits (3 ) (3 ) — — (1 ) — Fair value of plan assets, end of year $ 15,994 $ 12,697 $ 4,525 $ 4,025 $ 255 $ 328 Over (under) funded status $ (1,779 ) $ (3,256 ) $ (141 ) $ (190 ) $ (3,705 ) $ (3,321 ) Components of net amount recognized in financial position: Other assets (non-current asset) $ 219 $ 9 $ 485 $ 442 $ — $ — Accrued wages, salaries and employee benefits (current liability) (42 ) (40 ) (19 ) (20 ) (161 ) (173 ) Liability for postemployment benefits (non-current liability) 1 (1,956 ) (3,225 ) (607 ) (612 ) (3,544 ) (3,148 ) Net liability recognized $ (1,779 ) $ (3,256 ) $ (141 ) $ (190 ) $ (3,705 ) $ (3,321 ) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Prior service cost (credit) $ — $ — $ 16 $ 20 $ (78 ) $ (126 ) 1 The Liability for postemployment benefits reported in Statement 3 includes our liability for other postemployment benefits and our liability for non-qualified deferred compensation plans. For 2019, these liabilities were $60 million and $432 million , respectively. For 2018, these liabilities were $119 million and $351 million , respectively.
Schedule of pension plans with projected benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits	U.S. Pension Benefits Non-U.S. Pension Benefits (Millions of dollars) 2019 2018 2019 2018 Pension plans with projected benefit obligation in excess of plan assets: Projected benefit obligation $ 14,037 $ 15,614 $ 2,010 $ 1,821 Accumulated benefit obligation $ 14,037 $ 15,541 $ 1,896 $ 1,723 Fair value of plan assets $ 12,039 $ 12,349 $ 1,384 $ 1,189 Pension plans with accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 14,037 $ 15,614 $ 1,875 $ 1,655 Accumulated benefit obligation $ 14,037 $ 15,541 $ 1,799 $ 1,603 Fair value of plan assets $ 12,039 $ 12,349 $ 1,269 $ 1,047 The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented.
Schedule of pension plans with accumulated benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits	U.S. Pension Benefits Non-U.S. Pension Benefits (Millions of dollars) 2019 2018 2019 2018 Pension plans with projected benefit obligation in excess of plan assets: Projected benefit obligation $ 14,037 $ 15,614 $ 2,010 $ 1,821 Accumulated benefit obligation $ 14,037 $ 15,541 $ 1,896 $ 1,723 Fair value of plan assets $ 12,039 $ 12,349 $ 1,384 $ 1,189 Pension plans with accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 14,037 $ 15,614 $ 1,875 $ 1,655 Accumulated benefit obligation $ 14,037 $ 15,541 $ 1,799 $ 1,603 Fair value of plan assets $ 12,039 $ 12,349 $ 1,269 $ 1,047 The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented.
Components of net periodic benefit cost, other changes in plan assets and benefits obligations recognized in other comprehensive income and weighted-average assumptions used to determine net cost	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 115 $ 125 $ 115 $ 80 $ 89 $ 95 $ 80 $ 83 $ 78 Interest cost 600 534 525 94 96 101 136 125 130 Expected return on plan assets (721 ) (808 ) (734 ) (148 ) (221 ) (231 ) (18 ) (32 ) (37 ) Curtailments, settlements and termination benefits (1 ) — 9 (7 ) (33 ) 15 — (2 ) — Amortization of prior service cost (credit) 1 — — — — — (2 ) (40 ) (36 ) (23 ) Actuarial loss (gain) 2 72 534 481 90 111 (195 ) 306 (150 ) 15 Net Periodic benefit cost (benefit) 3 $ 65 $ 385 $ 396 $ 109 $ 42 $ (217 ) $ 464 $ (12 ) $ 163 Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): Current year prior service cost (credit) $ — $ — $ — $ (4 ) $ 20 $ 3 $ 8 $ (20 ) $ (77 ) Amortization of prior service (cost) credit 1 — — — — — 2 40 36 23 Total recognized in other comprehensive income — — — (4 ) 20 5 48 16 (54 ) Total recognized in net periodic cost and other comprehensive income $ 65 $ 385 $ 396 $ 105 $ 62 $ (212 ) $ 512 $ 4 $ 109 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate used to measure service cost 4.3 % 3.7 % 4.2 % 2.5 % 2.3 % 2.4 % 4.1 % 3.5 % 3.9 % Discount rate used to measure interest cost 3.9 % 3.2 % 3.3 % 2.3 % 2.2 % 2.3 % 3.9 % 3.2 % 3.3 % Expected rate of return on plan assets 4 5.9 % 6.3 % 6.7 % 3.8 % 5.2 % 5.9 % 7.2 % 7.5 % 7.5 % Rate of compensation increase 4.0 % 4.0 % 4.0 % 3.0 % 4.0 % 4.0 % 4.1 % 4.0 % 4.0 % 1 The estimated amount of prior service cost (credit) that will be amortized from Accumulated other comprehensive income (loss) at December 31, 2019 into net periodic benefit cost (pre-tax) in 2020 is a credit of $38 million for Other Postretirement Benefits. 2 Actuarial loss (gain) represents the effects of actual results differing from our assumptions and the effects of changing assumptions. We recognize actuarial loss (gain) immediately through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. 3 The service cost component is included in Operating costs and all other components are included in Other income (expense) in Statement 1. 4 The weighted-average rates for 2020 are 5.1 percent and 3.2 percent for U.S. and non-U.S. pension plans, respectively.
Effects of one-percentage point change in the assumed health care cost trend rates	A one-percentage-point change in assumed health care cost trend rates would have had the following effects: (Millions of dollars) One-percentage- point increase One-percentage- point decrease Effect on 2019 service and interest cost components of other postretirement benefit cost $ 13 $ (11 ) Effect on accumulated postretirement benefit obligation $ 158 $ (133 )
Schedule of expected contributions, expected benefit payments and gross prescription drug subsidy receipts	Information about expected contributions and benefit payments for pension and other postretirement benefit plans is as follows: (Millions of dollars) 2020 Expected employer contributions: U.S. Pension Benefits $ 40 Non-U.S. Pension Benefits $ 105 Other Postretirement Benefits $ 135 Expected benefit payments: 2020 2021 2022 2023 2024 2025- 2029 Total U.S. Pension Benefits $ 1,020 $ 1,010 $ 1,010 $ 1,010 $ 1,010 $ 5,005 $ 10,065 Non-U.S. Pension Benefits $ 280 $ 175 $ 180 $ 185 $ 190 $ 1,055 $ 2,065 Other Postretirement Benefits $ 290 $ 285 $ 280 $ 275 $ 270 $ 1,340 $ 2,740 Expected Medicare Part D subsidy: $ 9 $ 9 $ 9 $ 8 $ 8 $ 35 $ 78
Fair value of pension and other postretirement benefit plan assets, by category	The fair value of the pension and other postretirement benefit plan assets by category is summarized below: December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value U.S. Pension Equity securities: U.S. equities $ 2,578 $ — $ 23 $ 133 $ 2,734 Non-U.S. equities 2,068 — — — 2,068 Fixed income securities: U.S. corporate bonds — 6,577 57 — 6,634 Non-U.S. corporate bonds — 1,414 — — 1,414 U.S. government bonds — 2,220 — — 2,220 U.S. governmental agency mortgage-backed securities — 63 — — 63 Non-U.S. government bonds — 96 — — 96 Real estate — — 10 — 10 Cash, short-term instruments and other 230 10 — 515 755 Total U.S. pension assets $ 4,876 $ 10,380 $ 90 $ 648 $ 15,994 December 31, 2018 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value U.S. Pension Equity securities: U.S. equities $ 1,971 $ — $ 35 $ 155 $ 2,161 Non-U.S. equities 1,279 — 1 — 1,280 Fixed income securities: U.S. corporate bonds — 6,371 61 52 6,484 Non-U.S. corporate bonds — 1,332 — — 1,332 U.S. government bonds — 590 — — 590 U.S. governmental agency mortgage-backed securities — 384 — — 384 Non-U.S. government bonds — 79 — — 79 Real estate — — 10 — 10 Cash, short-term instruments and other 202 9 — 166 377 Total U.S. pension assets $ 3,452 $ 8,765 $ 107 $ 373 $ 12,697 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 58 $ — $ — $ — $ 58 Non-U.S. equities 346 29 — 65 440 Global equities 1 26 16 — 111 153 Fixed income securities: U.S. corporate bonds — 253 — — 253 Non-U.S. corporate bonds — 808 — 7 815 U.S. government bonds — 65 — — 65 Non-U.S. government bonds — 1,952 — — 1,952 Global fixed income 1 — 182 — 208 390 Real estate — 211 — — 211 Cash, short-term instruments and other 2 68 120 — — 188 Total non-U.S. pension assets $ 498 $ 3,636 $ — $ 391 $ 4,525 December 31, 2018 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 43 $ — $ — $ — $ 43 Non-U.S. equities 259 28 — 53 340 Global equities 1 23 23 — 90 136 Fixed income securities: U.S. corporate bonds — 206 — — 206 Non-U.S. corporate bonds — 690 — 6 696 U.S. government bonds — 74 — — 74 Non-U.S. government bonds — 1,721 — — 1,721 Global fixed income 1 — 261 — 215 476 Real estate — 185 — — 185 Cash, short-term instruments and other 2 66 82 — — 148 Total non-U.S. pension assets $ 391 $ 3,270 $ — $ 364 $ 4,025 1 Includes funds that invest in both U.S. and non-U.S. securities. 2 Includes funds that invest in multiple asset classes, hedge funds and other. We have reclassified $143 million from Level 1 to measured at net assets value for 2018. The reclassification did not impact total assets. December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 119 $ — $ — $ — $ 119 Non-U.S. equities 56 — — — 56 Fixed income securities: U.S. corporate bonds — 33 — — 33 Non-U.S. corporate bonds — 6 — — 6 U.S. government bonds — 9 — — 9 U.S. governmental agency mortgage-backed securities — 16 — — 16 Non-U.S. government bonds — 3 — — 3 Cash, short-term instruments and other 2 1 — 10 13 Total other postretirement benefit assets $ 177 $ 68 $ — $ 10 $ 255 December 31, 2018 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 151 $ 1 $ — $ — $ 152 Non-U.S. equities 64 — — — 64 Fixed income securities: U.S. corporate bonds — 45 — — 45 Non-U.S. corporate bonds — 11 — — 11 U.S. government bonds — 8 — — 8 U.S. governmental agency mortgage-backed securities — 25 — — 25 Non-U.S. government bonds — 3 — — 3 Cash, short-term instruments and other 3 1 — 16 20 Total other postretirement benefit assets $ 218 $ 94 $ — $ 16 $ 328
Roll forward of assets measured at fair value using level 3 inputs	Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2019 and 2018 . These instruments were valued using pricing models that, in management’s judgment, reflect the assumptions a market participant would use. (Millions of dollars) Equities Fixed Income Real Estate U.S. Pension Balance at December 31, 2017 $ 20 $ 60 $ 10 Unrealized gains (losses) (6 ) (12 ) — Realized gains (losses) — — — Purchases, issuances and settlements, net 21 11 — Transfers in and/or out of Level 3 1 2 — Balance at December 31, 2018 $ 36 $ 61 $ 10 Unrealized gains (losses) (9 ) — — Realized gains (losses) 7 — — Purchases, issuances and settlements, net (10 ) (4 ) — Transfers in and/or out of Level 3 (1 ) — — Balance at December 31, 2019 $ 23 $ 57 $ 10
Company costs related to U.S. and non-U.S. defined contribution plans	Total company costs related to U.S. and non-U.S. defined contribution plans were as follows: (Millions of dollars) 2019 2018 2017 U.S. plans $ 414 $ 271 $ 375 Non-U.S. plans 83 89 73 $ 497 $ 360 $ 448

Short-term borrowings (Tables)

Short-term borrowings (Tables)	12 Months Ended
	Dec. 31, 2019
Short-term Borrowings Disclosure [Abstract]
Short-term borrowings	December 31, (Millions of dollars) 2019 2018 Machinery, Energy & Transportation: Notes payable to banks $ 5 $ — 5 — Financial Products: Notes payable to banks 605 526 Commercial paper 4,168 4,759 Demand notes 388 438 5,161 5,723 Total short-term borrowings $ 5,166 $ 5,723 The weighted-average interest rates on short-term borrowings outstanding were: December 31, 2019 2018 Notes payable to banks 5.0 % 5.3 % Commercial paper 1.3 % 2.0 % Demand notes 1.7 % 2.2 %

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Long-term debt	December 31, (Millions of dollars) Effective Yield to Maturity 1 2019 2018 Machinery, Energy & Transportation: Notes—$1,250 million of 3.900% due 2021 2 4.01% $ 1,248 $ 1,247 Notes—$759 million of 5.200% due 2041 2 5.27% 752 751 Debentures—$120 million of 9.375% due 2021 9.41% 120 120 Debentures—$500 million of 2.600% due 2022 2 2.70% 499 498 Debentures—$82 million of 8.000% due 2023 8.06% 82 82 Debentures—$1,000 million of 3.400% due 2024 3.46% 998 997 Debentures—$193 million of 6.625% due 2028 2 6.68% 192 192 Debentures—$500 million of 2.600% due 2029 2 2.64% 497 — Debentures—$242 million of 7.300% due 2031 2 7.38% 240 240 Debentures—$307 million of 5.300% due 2035 2 8.64% 220 218 Debentures—$460 million of 6.050% due 2036 2 6.12% 456 456 Debentures—$65 million of 8.250% due 2038 2 8.38% 64 64 Debentures—$160 million of 6.950% due 2042 2 7.02% 158 158 Debentures—$1,722 million of 3.803% due 2042 2 6.39% 1,277 1,257 Debentures—$500 million of 4.300% due 2044 4.39% 493 493 Debentures—$1,000 million of 3.250% due 2049 2 3.37% 982 — Debentures—$500 million of 4.750% due 2064 4.81% 494 494 Debentures—$246 million of 7.375% due 2097 2 7.51% 241 241 Finance lease obligations & other 3 128 497 Total Machinery, Energy & Transportation 9,141 8,005 Financial Products: Medium-term notes 16,719 16,592 Other 421 403 Total Financial Products 17,140 16,995 Total long-term debt due after one year $ 26,281 $ 25,000 1 Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs. 2 Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures. 3 2018 includes $360 million related to a financing transaction in Japan entered into in 2017 that was removed in 2019 due to the new lease accounting guidance adopted January 1, 2019. See Note 1J for additional information.
Aggregate amounts of maturities of long-term debt	The aggregate amounts of maturities of long-term debt during each of the years 2020 through 2024, including amounts due within one year and classified as current, are: December 31, (Millions of dollars) 2020 2021 2022 2023 2024 Machinery, Energy & Transportation $ 16 $ 1,403 $ 513 $ 93 $ 1,007 Financial Products 6,194 7,732 4,744 2,167 2,157 $ 6,210 $ 9,135 $ 5,257 $ 2,260 $ 3,164

Credit commitments (Tables)

Credit commitments (Tables)	12 Months Ended
	Dec. 31, 2019
Credit Commitments [Abstract]
Credit commitments	December 31, 2019 (Millions of dollars) Consolidated Machinery, Energy & Transportation Financial Products Credit lines available: Global credit facilities $ 10,500 $ 2,751 $ 7,749 Other external 4,999 194 4,805 Total credit lines available 15,499 2,945 12,554 Less: Commercial paper outstanding (4,168 ) — (4,168 ) Less: Utilized credit (1,247 ) — (1,247 ) Available credit $ 10,084 $ 2,945 $ 7,139

Profit per share (Tables)

Profit per share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Computations of Profit Per Share	Computations of profit per share: (Dollars in millions except per share data) 2019 2018 2017 Profit for the period (A) 1 $ 6,093 $ 6,147 $ 754 Determination of shares (in millions): Weighted average number of common shares outstanding (B) 561.6 591.4 591.8 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 5.9 8.0 7.5 Average common shares outstanding for fully diluted computation (C) 2 567.5 599.4 599.3 Profit per share of common stock: Assuming no dilution (A/B) $ 10.85 $ 10.39 $ 1.27 Assuming full dilution (A/C) 2 $ 10.74 $ 10.26 $ 1.26 Shares outstanding as of December 31 (in millions) 550.1 575.5 597.6 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Accumulated other comprehensi_2

Accumulated other comprehensive income (loss) (Tables)	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Schedule of Accumulated other comprehensive income (loss)	Changes in Accumulated other comprehensive income (loss), net of tax, included in Statement 4, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Balance at December 31, 2016 $ (1,970 ) $ 14 $ (115 ) $ 32 $ (2,039 ) Other comprehensive income (loss) before reclassifications 752 48 (3 ) 41 838 Amounts reclassified from accumulated other comprehensive (income) loss 13 (16 ) 77 (65 ) 9 Other comprehensive income (loss) 765 32 74 (24 ) 847 Balance at December 31, 2017 $ (1,205 ) $ 46 $ (41 ) $ 8 $ (1,192 ) Adjustment to adopt recognition and measurement of financial assets and liabilities guidance — — — (11 ) (11 ) Balance at January 1, 2018 (1,205 ) 46 (41 ) (3 ) (1,203 ) Other comprehensive income (loss) before reclassifications (397 ) (6 ) 61 (12 ) (354 ) Amounts reclassified from accumulated other comprehensive (income) loss 1 (28 ) (100 ) — (127 ) Other comprehensive income (loss) (396 ) (34 ) (39 ) (12 ) (481 ) Balance at December 31, 2018 $ (1,601 ) $ 12 $ (80 ) $ (15 ) $ (1,684 ) Adjustment to adopt new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income 98 19 (9 ) — 108 Balance at January 1, 2019 (1,503 ) 31 (89 ) (15 ) (1,576 ) Other comprehensive income (loss) before reclassifications 16 (4 ) 43 35 90 Amounts reclassified from accumulated other comprehensive (income) loss — (30 ) (51 ) — (81 ) Other comprehensive income (loss) 16 (34 ) (8 ) 35 9 Balance at December 31, 2019 $ (1,487 ) $ (3 ) $ (97 ) $ 20 $ (1,567 )
Reclassification out of Accumulated other comprehensive income (loss)	The effect of the reclassifications out of Accumulated other comprehensive income (loss) on Statement 1 is as follows: Year ended December 31, (Millions of dollars) Classification of income (expense) 2019 2018 2017 Foreign currency translation: Gain (loss) on foreign currency translation Other income (expense) $ — $ (1 ) $ (13 ) Tax (provision) benefit — — — Reclassifications net of tax $ — $ (1 ) $ (13 ) Pension and other postretirement benefits: Amortization of prior service credit (cost) Other income (expense) $ 40 $ 36 $ 25 Tax (provision) benefit (10 ) (8 ) (9 ) Reclassifications net of tax $ 30 $ 28 $ 16 Derivative financial instruments: Foreign exchange contracts Sales of Machinery, Energy & Transportation $ 11 $ — $ — Foreign exchange contracts Cost of goods sold $ (3 ) $ — $ — Foreign exchange contracts Other income (expense) $ 37 $ 115 $ (121 ) Foreign exchange contracts Interest expense of Financial Products 33 19 6 Interest rate contracts Interest expense excluding Financial Products (4 ) (3 ) (9 ) Interest rate contracts Interest expense of Financial Products (8 ) — 3 Reclassifications before tax 66 131 (121 ) Tax (provision) benefit (15 ) (31 ) 44 Reclassifications net of tax $ 51 $ 100 $ (77 ) Available-for-sale securities: Realized gain (loss) on sale of securities Other income (expense) $ — $ — $ 100 Tax (provision) benefit — — (35 ) Reclassifications net of tax $ — $ — $ 65 Total reclassifications from Accumulated other comprehensive income (loss) $ 81 $ 127 $ (9 )

Fair value disclosures (Tables)

Fair value disclosures (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Assets and liabilities measured on a recurring basis at fair value	Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in Statement 3 as of December 31, 2019 and 2018 are summarized below: December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets / Liabilities, at Fair Value Assets Debt securities Government debt U.S. treasury bonds $ 9 $ — $ — $ — $ 9 Other U.S. and non-U.S. government bonds — 54 — — 54 Corporate bonds Corporate bonds — 856 — — 856 Asset-backed securities — 62 — — 62 Mortgage-backed debt securities U.S. governmental agency — 331 — — 331 Residential — 6 — — 6 Commercial — 47 — — 47 Total debt securities 9 1,356 — — 1,365 Equity securities Large capitalization value 187 — — — 187 Smaller company growth 29 — 4 — 33 REIT — — — 126 126 Total equity securities 216 — 4 126 346 Derivative financial instruments, net — 45 — — 45 Total Assets $ 225 $ 1,401 $ 4 $ 126 $ 1,756 December 31, 2018 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets / Liabilities, at Fair Value Assets Debt securities Government debt U.S. treasury bonds $ 9 $ — $ — $ — $ 9 Other U.S. and non-U.S. government bonds — 42 — — 42 Corporate bonds Corporate bonds — 720 — — 720 Asset-backed securities — 63 — — 63 Mortgage-backed debt securities U.S. governmental agency — 297 — — 297 Residential — 7 — — 7 Commercial — 13 — — 13 Total debt securities 9 1,142 — — 1,151 Equity securities Large capitalization value 260 — — — 260 Smaller company growth 46 — — — 46 REIT — — — 119 119 Total equity securities 306 — — 119 425 Total Assets $ 315 $ 1,142 $ — $ 119 $ 1,576 Liabilities Derivative financial instruments, net $ — $ 19 $ — $ — $ 19 Total Liabilities $ — $ 19 $ — $ — $ 19
Fair values of financial instruments	Fair values of our financial instruments were as follows: TABLE III—Fair Values of Financial Instruments 2019 2018 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets at December 31, Cash and short-term investments $ 8,284 $ 8,284 $ 7,857 $ 7,857 1 Statement 3 Restricted cash and short-term investments 8 8 33 33 1 Statement 3 Investments in debt and equity securities 1,711 1,711 1,576 1,576 1, 2 & 3 Notes 11 & 19 Finance receivables–net (excluding finance leases 1 ) 14,473 14,613 14,714 14,798 3 Notes 7 & 19 Wholesale inventory receivables–net (excluding finance leases 1 ) 1,105 1,076 1,050 1,025 3 Notes 7 & 19 Foreign currency contracts–net 62 62 47 47 2 Notes 4 & 19 Commodity contracts–net 3 3 — — 2 Notes 4 & 19 Liabilities at December 31, Short-term borrowings 5,166 5,166 5,723 5,723 1 Note 13 Long-term debt (including amounts due within one year): Machinery, Energy & Transportation 9,157 11,216 8,015 9,046 2 Note 14 Financial Products 23,334 23,655 22,815 22,684 2 Note 14 Interest rate swaps–net 20 20 36 36 2 Notes 4 & 19 Commodity contracts–net — — 30 30 2 Notes 4 & 19 Guarantees 5 5 8 8 3 Note 21 1 Represents finance leases and failed sale leasebacks of $7,800 million at December 31, 2019 and finance leases of $7,463 million at December 31, 2018, respectively.

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Lease, Cost	The components of lease costs were as follows: (Millions of dollars) Year ended December 31 2019 Operating lease cost $ 232 Short-term lease cost $ 57
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental information related to leases was as follows: (Millions of dollars) December 31, 2019 January 1, 2019 Operating Leases Other assets $ 624 $ 713 Other current liabilities $ 173 $ 209 Other liabilities $ 461 $ 511 Weighted average remaining lease term Operating leases 7 years 7 years Weighted average discount rates Operating leases 2 % 2 %
Schedule of Maturities of Operating and Finance Leases Liabilities	Maturities of operating lease liabilities at December 31, 2019 and minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year at December 31, 2018 were as follows: (Millions of dollars) December 31, 2019 Amounts Due In 2020 $ 185 2021 139 2022 86 2023 64 2024 46 Thereafter 175 Total lease payments 695 Less: Imputed interest (61 ) Total $ 634 December 31, 2018 Amounts Due In 2019 $ 205 2020 154 2021 111 2022 67 2023 50 Thereafter 185 Total $ 772
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: (Millions of dollars) Year ended December 31 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 224 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 122
Schedule of Equipment under Operating Leases	The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows: December 31, (Millions of dollars) 2019 2018 Equipment leased to others - at original cost $ 6,208 $ 6,015 Less: Accumulated depreciation (1,960 ) (1,744 ) Equipment leased to others - net $ 4,248 $ 4,271
Lessor, Operating Lease, Payments to be Received, Maturity	Payments due for operating leases at December 31, 2019 and scheduled minimum rental payments for operating leases at December 31, 2018 were as follows: (Millions of dollars) December 31, 2019 2020 2021 2022 2023 2024 Thereafter Total $861 $558 $299 $149 $74 $70 $2,011 December 31, 2018 2019 2020 2021 2022 2023 Thereafter Total $896 $574 $314 $158 $71 $69 $2,082
Revenue from finance and operating lease	Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows: (Millions of dollars) Year ended December 31 2019 Finance lease revenue $ 521 Operating lease revenue 1,248 Total $ 1,769

Guarantees and product warran_2

Guarantees and product warranty (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Guarantees	The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees at December 31 are as follows: (Millions of dollars) 2019 2018 Caterpillar dealer performance guarantees $ 1,150 $ 1,244 Supplier consortium performance guarantees 238 527 Other guarantees 221 207 Total guarantees $ 1,609 $ 1,978
Product warranty	Specific rates are developed for each product shipment month and are updated monthly based on actual warranty claim experience. (Millions of dollars) 2019 2018 Warranty liability, January 1 $ 1,391 $ 1,419 Reduction in liability (payments) (903 ) (783 ) Increase in liability (new warranties) 1,053 755 Warranty liability, December 31 $ 1,541 $ 1,391

Segment information (Tables)

Segment information (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting Information
Reportable Segments	Segment Information (Millions of dollars) Reportable Segments: External sales and revenues Inter- segment sales and revenues Total sales and revenues Depreciation and amortization Segment profit Segment assets at December 31 Capital expenditures 2019 Construction Industries $ 22,556 $ 93 $ 22,649 $ 331 $ 3,931 $ 5,219 $ 201 Resource Industries 9,813 463 10,276 425 1,629 6,214 168 Energy & Transportation 18,485 3,612 22,097 628 3,910 8,612 613 Machinery, Energy & Transportation $ 50,854 $ 4,168 $ 55,022 $ 1,384 $ 9,470 $ 20,045 $ 982 Financial Products Segment 3,434 1 — 3,434 829 832 35,813 1,534 Total $ 54,288 $ 4,168 $ 58,456 $ 2,213 $ 10,302 $ 55,858 $ 2,516 2018 Construction Industries $ 23,116 $ 121 $ 23,237 $ 367 $ 4,174 $ 4,902 $ 266 Resource Industries 9,888 382 10,270 462 1,603 6,442 188 Energy & Transportation 18,832 3,953 22,785 640 3,938 8,386 742 Machinery, Energy & Transportation $ 51,836 $ 4,456 $ 56,292 $ 1,469 $ 9,715 $ 19,730 $ 1,196 Financial Products Segment 3,279 1 — 3,279 834 505 36,002 1,559 Total $ 55,115 $ 4,456 $ 59,571 $ 2,303 $ 10,220 $ 55,732 $ 2,755 2017 Construction Industries $ 19,133 $ 107 $ 19,240 $ 400 $ 3,255 $ 4,838 $ 228 Resource Industries 7,504 357 7,861 514 698 6,403 183 Energy & Transportation 15,964 3,418 19,382 653 2,856 7,564 527 Machinery, Energy & Transportation $ 42,601 $ 3,882 $ 46,483 $ 1,567 $ 6,809 $ 18,805 $ 938 Financial Products Segment 3,093 1 — 3,093 820 792 34,893 1,373 Total $ 45,694 $ 3,882 $ 49,576 $ 2,387 $ 7,601 $ 53,698 $ 2,311 1 Includes revenues from ME&T of $524 million , $470 million and $384 million for the years 2019, 2018 and 2017, respectively.
Sales and revenues by geographic region	For the years ended December 31, 2019 and 2018 , sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows: Sales and Revenues by Geographic Region (Millions of dollars) North America Latin America EAME Asia/ Pacific External Sales and Revenues 2019 Construction Industries $ 11,455 $ 1,533 $ 4,012 $ 5,556 $ 22,556 Resource Industries 3,632 1,533 1,836 2,812 $ 9,813 Energy & Transportation 8,864 1,389 4,994 3,238 $ 18,485 All Other operating segment 25 7 28 67 $ 127 Corporate Items and Eliminations (192 ) — (20 ) (14 ) (226 ) Machinery, Energy & Transportation Sales 23,784 4,462 10,850 11,659 $ 50,755 Financial Products Segment 2,235 299 408 492 3,434 1 Corporate Items and Eliminations (234 ) (51 ) (35 ) (69 ) (389 ) Financial Products Revenues 2,001 248 373 423 3,045 Consolidated Sales and Revenues $ 25,785 $ 4,710 $ 11,223 $ 12,082 $ 53,800 North America Latin America EAME Asia/ Pacific External Sales and Revenues 2018 Construction Industries $ 10,754 $ 1,479 $ 4,410 $ 6,473 $ 23,116 Resource Industries 3,357 1,647 2,217 2,667 $ 9,888 Energy & Transportation 9,685 1,331 4,934 2,882 $ 18,832 All Other operating segment 63 3 18 70 $ 154 Corporate Items and Eliminations (155 ) — (11 ) (2 ) (168 ) Machinery, Energy & Transportation Sales 23,704 4,460 11,568 12,090 $ 51,822 Financial Products Segment 2,153 281 387 458 3,279 1 Corporate Items and Eliminations (234 ) (46 ) (26 ) (73 ) (379 ) Financial Products Revenues 1,919 235 361 385 2,900 Consolidated Sales and Revenues $ 25,623 $ 4,695 $ 11,929 $ 12,475 $ 54,722 1 Includes revenues from ME&T of $524 million and $470 million in the years ended December 31, 2019 and 2018, respectively. Reconciliation of Sales and Revenues: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2017 Total external sales and revenues from reportable segments $ 42,601 $ 3,093 $ — $ 45,694 All Other operating segment 178 — — 178 Other (103 ) 74 (381 ) 1 (410 ) Total sales and revenues $ 42,676 $ 3,167 $ (381 ) $ 45,462 1 Elimination of Financial Products revenues from ME&T. For the years ended December 31, 2019 and 2018 , Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales (Millions of dollars) 2019 2018 Oil and gas $ 5,205 $ 5,763 Power generation 4,474 4,334 Industrial 3,749 3,640 Transportation 5,057 5,095 Energy & Transportation External Sales $ 18,485 $ 18,832
Reconciliation of Consolidated profit before taxes:	Reconciliation of consolidated profit before taxes: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total 2019 Total profit from reportable segments $ 9,470 $ 832 $ 10,302 All Other operating segment 4 — 4 Cost centers (6 ) — (6 ) Corporate costs (602 ) (5 ) (607 ) Timing (93 ) — (93 ) Restructuring costs (163 ) (44 ) (207 ) Methodology differences: Inventory/cost of sales (19 ) — (19 ) Postretirement benefit expense (401 ) — (401 ) Stock-based compensation expense (198 ) (7 ) (205 ) Financing costs (248 ) — (248 ) Currency (175 ) — (175 ) Other income/expense methodology differences (481 ) — (481 ) Other methodology differences (107 ) 55 (52 ) Total consolidated profit before taxes $ 6,981 $ 831 $ 7,812 2018 Total profit from reportable segments $ 9,715 $ 505 $ 10,220 All Other operating segment 23 — 23 Cost centers 2 — 2 Corporate costs (610 ) — (610 ) Timing (257 ) — (257 ) Restructuring costs (370 ) (16 ) (386 ) Methodology differences: Inventory/cost of sales 51 — 51 Postretirement benefit expense (124 ) — (124 ) Stock-based compensation expense (190 ) (8 ) (198 ) Financing costs (257 ) — (257 ) Currency (219 ) — (219 ) Other income/expense methodology differences (362 ) — (362 ) Other methodology differences (86 ) 25 (61 ) Total consolidated profit before taxes $ 7,316 $ 506 $ 7,822 2017 Total profit from reportable segments $ 6,809 $ 792 $ 7,601 All Other operating segment (44 ) — (44 ) Cost centers 22 — 22 Corporate costs (633 ) — (633 ) Timing (151 ) — (151 ) Restructuring costs (1,253 ) (3 ) (1,256 ) Methodology differences: Inventory/cost of sales (77 ) — (77 ) Postretirement benefit expense (141 ) — (141 ) Stock-based compensation expense (198 ) (8 ) (206 ) Financing costs (524 ) — (524 ) Currency (218 ) — (218 ) Other income/expense methodology differences (181 ) — (181 ) Other methodology differences (97 ) (13 ) (110 ) Total consolidated profit before taxes $ 3,314 $ 768 $ 4,082
Reconciliation of Restructuring costs:	As noted above, certain 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 2019 Construction Industries $ 3,931 $ (55 ) $ 3,876 Resource Industries 1,629 (56 ) 1,573 Energy & Transportation 3,910 (82 ) 3,828 Financial Products Segment 832 — 832 All Other operating segment 4 (11 ) (7 ) Total $ 10,306 $ (204 ) $ 10,102 2018 Construction Industries $ 4,174 $ (58 ) $ 4,116 Resource Industries 1,603 (191 ) 1,412 Energy & Transportation 3,938 (84 ) 3,854 Financial Products Segment 505 (2 ) 503 All Other operating segment 23 (40 ) (17 ) Total $ 10,243 $ (375 ) $ 9,868 2017 Construction Industries $ 3,255 $ (719 ) $ 2,536 Resource Industries 698 (276 ) 422 Energy & Transportation 2,856 (115 ) 2,741 Financial Products Segment 792 (3 ) 789 All Other operating segment (44 ) (39 ) (83 ) Total $ 7,557 $ (1,152 ) $ 6,405
Reconciliation of Assets:	Reconciliation of Assets: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2019 Total assets from reportable segments $ 20,045 $ 35,813 $ — $ 55,858 All Other operating segment 1,337 — — 1,337 Items not included in segment assets: Cash and short-term investments 7,299 — — 7,299 Intercompany receivables 758 — (758 ) — Investment in Financial Products 4,260 — (4,260 ) — Deferred income taxes 2,002 — (708 ) 1,294 Goodwill and intangible assets 4,435 — — 4,435 Property, plant and equipment – net and other assets 2,529 — — 2,529 Inventory methodology differences (2,426 ) — — (2,426 ) Liabilities included in segment assets 8,541 — — 8,541 Other (343 ) 134 (205 ) (414 ) Total assets $ 48,437 $ 35,947 $ (5,931 ) $ 78,453 2018 Total assets from reportable segments $ 19,730 $ 36,002 $ — $ 55,732 All Other operating segment 1,279 — — 1,279 Items not included in segment assets: Cash and short-term investments 6,968 — — 6,968 Intercompany receivables 1,633 — (1,633 ) — Investment in Financial Products 3,672 — (3,672 ) — Deferred income taxes 2,015 — (692 ) 1,323 Goodwill and intangible assets 4,279 — — 4,279 Property, plant and equipment – net and other assets 1,802 — — 1,802 Inventory methodology differences (2,503 ) — — (2,503 ) Liabilities included in segment assets 9,766 — — 9,766 Other (166 ) 66 (37 ) (137 ) Total assets $ 48,475 $ 36,068 $ (6,034 ) $ 78,509
Reconciliation of Depreciation and amortization:	Reconciliation of Depreciation and amortization: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidated Total 2019 Total depreciation and amortization from reportable segments $ 1,384 $ 829 $ 2,213 Items not included in segment depreciation and amortization: All Other operating segment 210 — 210 Cost centers 136 — 136 Other (17 ) 35 18 Total depreciation and amortization $ 1,713 $ 864 $ 2,577 2018 Total depreciation and amortization from reportable segments $ 1,469 $ 834 $ 2,303 Items not included in segment depreciation and amortization: All Other operating segment 225 — 225 Cost centers 130 — 130 Other 71 37 108 Total depreciation and amortization $ 1,895 $ 871 $ 2,766 2017 Total depreciation and amortization from reportable segments $ 1,567 $ 820 $ 2,387 Items not included in segment depreciation and amortization: All Other operating segment 220 — 220 Cost centers 143 — 143 Other 86 41 127 Total depreciation and amortization $ 2,016 $ 861 $ 2,877
Reconciliation of Capital expenditures:	Reconciliation of Capital expenditures: (Millions of dollars) Machinery, Energy & Transportation Financial Products Consolidating Adjustments Consolidated Total 2019 Total capital expenditures from reportable segments $ 982 $ 1,534 $ — $ 2,516 Items not included in segment capital expenditures: All Other operating segment 131 — — 131 Cost centers 101 — — 101 Timing (11 ) — — (11 ) Other (129 ) 102 (41 ) (68 ) Total capital expenditures $ 1,074 $ 1,636 $ (41 ) $ 2,669 2018 Total capital expenditures from reportable segments $ 1,196 $ 1,559 $ — $ 2,755 Items not included in segment capital expenditures: All Other operating segment 170 — — 170 Cost centers 100 — — 100 Timing 42 — — 42 Other (287 ) 216 (80 ) (151 ) Total capital expenditures $ 1,221 $ 1,775 $ (80 ) $ 2,916 2017 Total capital expenditures from reportable segments $ 938 $ 1,373 $ — $ 2,311 Items not included in segment capital expenditures: All Other operating segment 134 — — 134 Cost centers 84 — — 84 Timing (96 ) — — (96 ) Other (144 ) 80 (33 ) (97 ) Total capital expenditures $ 916 $ 1,453 $ (33 ) $ 2,336
Information about Geographic Areas	Information about Geographic Areas: Property, plant and equipment - net External sales and revenues 1 December 31, (Millions of dollars) 2019 2018 2017 2019 2018 Inside United States $ 22,806 $ 22,690 $ 18,552 $ 7,568 $ 8,152 Outside United States 30,994 32,032 26,910 5,336 5,422 Total $ 53,800 $ 54,722 $ 45,462 $ 12,904 $ 13,574 1 Sales of ME&T are based on dealer or customer location. Revenues from services provided are based on where service is rendered.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	12 Months Ended
	Dec. 31, 2019
Restructuring Charges [Abstract]
Restructuring and Related Costs	Restructuring costs for 2019, 2018 and 2017 were as follows: (Millions of dollars) 2019 2018 2017 Employee separations 1 $ 48 $ 112 $ 525 Contract terminations 1 1 7 183 Long-lived asset impairments 1 65 93 346 Defined benefit plan curtailments and termination benefits 2 — (8 ) 29 Other 3 122 182 173 Total restructuring costs $ 236 $ 386 $ 1,256 1 Recognized in Other operating (income) expenses. 2 Recognized in Other income (expense). 3 Represents costs related to our restructuring programs, primarily for project management, inventory write-downs, accelerated depreciation and equipment relocation, and also LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold.
Summary of separation activity	The following table summarizes the 2018 and 2019 employee separation activity: (Millions of dollars) Liability balance at December 31, 2017 $ 249 Increase in liability (separation charges) 112 Reduction in liability (payments) (276 ) Liability balance at December 31, 2018 $ 85 Increase in liability (separation charges) 48 Reduction in liability (payments) (85 ) Liability balance at December 31, 2019 $ 48

Selected quarterly financial _2

Selected quarterly financial results (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial results	2019 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 13,466 $ 14,432 $ 12,758 $ 13,144 Less: Revenues (742 ) (761 ) (784 ) (758 ) Sales 12,724 13,671 11,974 12,386 Cost of goods sold 9,003 9,941 8,569 9,117 Gross margin 3,721 3,730 3,405 3,269 Profit 1 $ 1,881 3 $ 1,620 $ 1,494 $ 1,098 5 Profit per common share $ 3.29 $ 2.85 $ 2.69 $ 2.00 Profit per common share–diluted 2 $ 3.25 $ 2.83 $ 2.66 $ 1.97 2018 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 12,859 $ 14,011 $ 13,510 $ 14,342 Less: Revenues (709 ) (732 ) (747 ) (712 ) Sales 12,150 13,279 12,763 13,630 Cost of goods sold 8,566 9,422 9,022 9,987 Gross margin 3,584 3,857 3,741 3,643 Profit 1 $ 1,665 $ 1,707 $ 1,727 4 $ 1,048 3,5,6 Profit per common share $ 2.78 $ 2.86 $ 2.92 $ 1.80 Profit per common share–diluted 2 $ 2.74 $ 2.82 $ 2.88 $ 1.78 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. 3 The first quarter of 2019 includes a benefit of $178 million to adjust unrecognized tax benefits due to the receipt of final regulations providing additional guidance related to the calculation of the mandatory deemed repatriation of non-U.S. earnings due to U.S. tax reform. The fourth quarter of 2018 includes a charge of $50 million due to an estimated increase in the mandatory deemed repatriation of non-U.S. earnings. 4 The third quarter of 2018 includes a benefit of $154 million due to the revised estimated impact of the write-down of U.S. net deferred tax assets to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent . The third quarter of 2018 also includes a charge of $59 million to increase the valuation allowance against deferred tax assets for prior years. See Note 6 for additional details. 5 The fourth quarter of 2019 and fourth quarter of 2018 include pre-tax pension and other postretirement benefit plan actuarial losses of $468 million and $495 million , respectively. See Note 12 for additional information on these costs. 6 The fourth quarter of 2018 includes a benefit of $63 million from reductions in the valuation allowance against U.S. state deferred tax assets. See Note 6 for additional information.

Sales and revenue recognition (

Sales and revenue recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018
Revenue from External Customer [Line Items]
Receivables, Net, Current	$ 7,648	$ 7,743	$ 6,399
Long term trade receivables from dealers and end users	693	674	639
Contract with Customer, Liability, Noncurrent	1,654	1,680	$ 1,868
Contract with Customer, Liability, Revenue Recognized	1,171	$ 1,294
Revenue, Remaining Performance Obligation, Amount	$ 6,200
Period after which Collection of Future Income is Considered as Not Probable	120 days
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from External Customer [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 2,400

Stock-based compensation (Detai

Stock-based compensation (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares issued from treasury stock for stock-based compensation (in shares)	5,126,379	5,590,641	11,139,748
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	40,754,720
Term life of SARs and option awards (in years)	10 years
Required minimum age of a participant upon separation from service to meet the criteria for Long Service Separation (in years)	55 years
Minimum term of service to meet criteria for Long Service Separation (in years)	5 years
Term life of vested options/SARs from separation date (in years)	5 years
Assumptions used in determining the fair value of the stock-based awards
Weighted-average dividend yield (as a percent)	2.60%	2.70%	3.40%
Weighted-average volatility (as a percent)	29.10%	30.20%	29.20%
Volatilities, low end of range (as a percent)	25.10%	21.50%	22.10%
Volatilities, high end of range (as a percent)	39.00%	33.00%	33.00%
Risk-free interest rates, low end of range (as a percent)	2.48%	2.02%	0.81%
Risk-free interest rates, high end of range (as a percent)	2.68%	2.87%	2.35%
Weighted-average expected lives (in years)	7 years	8 years	8 years
Weighted-Average Grant Date Fair Value for RSUs and PSUs
Number of additional shares authorized under the plan (in shares)			36,000,000
Number of shares authorized under the plans (in shares)	74,800,000			38,800,000
Stock Options and Stock Appreciation Rights (SARs)
Stock options/SARs activity
Outstanding at beginning of year (in shares)	17,841,669
Granted to officers and key employees (in shares)	1,499,524
Exercised (in shares)	(4,808,237)
Forfeited / expired (in shares)	(67,962)
Outstanding at end of year (in shares)	14,464,994	17,841,669
Number of stock awards exercisable at end of the period (in shares)	11,154,215
Weighted- Average Exercise Price for Stock options/SARs
Outstanding at beginning of year (in dollars per shares)	$ 91.93
Granted to officers and key employees (in dollars per shares)	138.35
Exercised (in dollars per shares)	83.81
Forfeited / expired (in dollars per shares)	123.36
Outstanding at end of year (in dollars per shares)	99.29	$ 91.93
Exercisable at year-end (in dollars per share)	$ 89.84
Stock Appreciation Rights (SARs)
Stock options/SARs activity
Granted to officers and key employees (in shares)	0
Restricted Stock Units (RSUs)
RSUs/PSUs activity
Outstanding at beginning of year (in shares)	1,566,070
Granted to officers and key employees (in shares)	687,294
Vested (in shares)	(820,927)
Forfeited (in shares)	(63,234)
Outstanding at end of year (in shares)	1,369,203	1,566,070
Weighted-Average Grant Date Fair Value for RSUs and PSUs
Outstanding at beginning of year (in dollars per shares)	$ 112.99
Granted to officers and key employees (in dollars per shares)	138.61	$ 150.58	$ 90.11
Vested (in dollars per shares)	99.76
Forfeited (in dollars per shares)	133.39
Outstanding at end of year (in dollars per shares)	$ 132.88	$ 112.99
Performance Restricted Stock Units (PRSUs)
RSUs/PSUs activity
Outstanding at beginning of year (in shares)	735,299
Granted to officers and key employees (in shares)	359,122
Vested (in shares)	(399,811)
Forfeited (in shares)	(24,495)
Outstanding at end of year (in shares)	670,115	735,299
Weighted-Average Grant Date Fair Value for RSUs and PSUs
Outstanding at beginning of year (in dollars per shares)	$ 115.18
Granted to officers and key employees (in dollars per shares)	138.67	$ 150.98	$ 86.78
Vested (in dollars per shares)	95.66
Forfeited (in dollars per shares)	125.89
Outstanding at end of year (in dollars per shares)	$ 144.46	$ 115.18
2015 and later grants | Performance Restricted Stock Units (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Graded vesting period of awards granted (in years)	3 years
Percentage of award vested on first anniversary of grant date | 2015 and later grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%
Percentage of award vested on second anniversary of grant date | 2015 and later grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%
Percentage of award vested on third anniversary of grant date | 2015 and later grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%

Operations and summary of sig_4

Operations and summary of significant accounting policies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)dealerscountriesdistributors	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Operations and summary of significant accounting policies
Number of countries served by dealers	191
Percentage of value of inventories on the LIFO basis to total inventories	60.00%	65.00%
Maximum amortizable period of purchased intangibles (in years)	14 years	14 years
Incremental value of inventory if FIFO method had been in use | $	$ 2,086	$ 2,009
Consolidated depreciation expense | $	2,253	2,435	$ 2,555
Depreciation on equipment leased to others | $	$ 813	$ 819	$ 810
Inside United States
Operations and summary of significant accounting policies
Number of dealers | dealers	46
Countries Outside United States
Operations and summary of significant accounting policies
Number of dealers | dealers	119
Perkins
Operations and summary of significant accounting policies
Number of countries where distributors are located	178
Number of distributors | distributors	67
FG Wilson
Operations and summary of significant accounting policies
Number of countries where distributors are located	109
Number of distributors | distributors	150
MaK
Operations and summary of significant accounting policies
Number of countries where distributors are located	130
Number of distributors | distributors	20
Maximum
Operations and summary of significant accounting policies
Maximum amortizable period of purchased intangibles (in years)	20 years

Stock-based compensation (Det_2

Stock-based compensation (Details 2) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Additional Stock-based Award Information under Restricted Stock Units Activity
Stock-based compensation expense, before tax (in dollars)	$ 205	$ 197	$ 206
Income tax benefit corresponding to stock-based compensation expense	35	36	40
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars)	$ 161
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years)	1 year 7 months 6 days
Cash tax benefits realized from stock awards exercised	$ 89	$ 103	$ 205
$57.85-83.00
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	$ 57.85
Exercise Price Range, Maximum (in dollars per share)	83
$89.75-96.31
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	89.75
Exercise Price Range, Maximum (in dollars per share)	96.31
$102.13-110.09
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	102.13
Exercise Price Range, Maximum (in dollars per share)	110.03
$138.35-138.51
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	138.35
Exercise Price Range, Maximum (in dollars per share)	138.51
$141.32-151.12
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	141.32
Exercise Price Range, Maximum (in dollars per share)	$ 151.12
Stock Options and Stock Appreciation Rights (SARs)
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	14,464,994
Weighted Average Exercise Price (in dollars per share)	$ 99.29
Aggregate Intrinsic Value outstanding	$ 705
Number of stock awards exercisable at end of the period (in shares)	11,154,215
Weighted Average Exercise Price (in dollars per share)	$ 89.84
Aggregate Intrinsic Value exercisable	$ 647
Additional Stock-based Award Information under Stock Option and Stock Appreciation Rights
Weighted-average fair value per share of stock awards granted (in dollars per share)	$ 40.98	$ 46.09	$ 25.01
Intrinsic value of stock awards exercised	$ 264	$ 348	$ 504
Fair value of stock awards vested	100	86	191
Cash received from stock awards exercised	$ 298	$ 370	$ 629
Stock Options and Stock Appreciation Rights (SARs) | $57.85-83.00
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	5,775,829
Weighted Average Remaining Contractual Life outstanding (in years)	5 years 6 months 7 days
Weighted Average Exercise Price (in dollars per share)	$ 78.64
Aggregate Intrinsic Value outstanding	$ 399
Number of stock awards exercisable at end of the period (in shares)	5,775,829
Weighted-Average Remaining Contractual Life exercisable (in years)	5 years 6 months 7 days
Weighted Average Exercise Price (in dollars per share)	$ 78.64
Aggregate Intrinsic Value exercisable	$ 399
Stock Options and Stock Appreciation Rights (SARs) | $89.75-96.31
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	4,680,238
Weighted Average Remaining Contractual Life outstanding (in years)	5 years 4 months 17 days
Weighted Average Exercise Price (in dollars per share)	$ 94.56
Aggregate Intrinsic Value outstanding	$ 249
Number of stock awards exercisable at end of the period (in shares)	3,833,786
Weighted-Average Remaining Contractual Life exercisable (in years)	4 years 11 months 15 days
Weighted Average Exercise Price (in dollars per share)	$ 94.31
Aggregate Intrinsic Value exercisable	$ 205
Stock Options and Stock Appreciation Rights (SARs) | $102.13-110.09
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	1,052,650
Weighted Average Remaining Contractual Life outstanding (in years)	1 year 9 months
Weighted Average Exercise Price (in dollars per share)	$ 106.48
Aggregate Intrinsic Value outstanding	$ 43
Number of stock awards exercisable at end of the period (in shares)	1,052,650
Weighted-Average Remaining Contractual Life exercisable (in years)	1 year 9 months
Weighted Average Exercise Price (in dollars per share)	$ 106.48
Aggregate Intrinsic Value exercisable	$ 43
Stock Options and Stock Appreciation Rights (SARs) | $138.35-138.51
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	1,496,071
Weighted Average Remaining Contractual Life outstanding (in years)	9 years 3 months 14 days
Weighted Average Exercise Price (in dollars per share)	$ 138.35
Aggregate Intrinsic Value outstanding	$ 14
Number of stock awards exercisable at end of the period (in shares)	5,119
Weighted-Average Remaining Contractual Life exercisable (in years)	8 years 8 months 15 days
Weighted Average Exercise Price (in dollars per share)	$ 138.51
Aggregate Intrinsic Value exercisable	$ 0
Stock Options and Stock Appreciation Rights (SARs) | $141.32-151.12
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	1,460,206
Weighted Average Remaining Contractual Life outstanding (in years)	8 years 3 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 150.97
Aggregate Intrinsic Value outstanding	$ 0
Number of stock awards exercisable at end of the period (in shares)	486,831
Weighted-Average Remaining Contractual Life exercisable (in years)	8 years 3 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 150.97
Aggregate Intrinsic Value exercisable	$ 0
Restricted Stock Units (RSUs)
Additional Stock-based Award Information under Restricted Stock Units Activity
Outstanding at end of year (in shares)	1,369,203	1,566,070
Weighted average remaining contractual life (in years)	1 year 6 months
Weighted-average fair value per share of stock awards granted	$ 138.61	$ 150.58	$ 90.11
Fair value of stock awards vested	$ 110	$ 180	$ 189
Performance Restricted Stock Units (PRSUs)
Additional Stock-based Award Information under Restricted Stock Units Activity
Outstanding at end of year (in shares)	670,115	735,299
Weighted average remaining contractual life (in years)	1 year 6 months
Weighted-average fair value per share of stock awards granted	$ 138.67	$ 150.98	$ 86.78
Fair value of stock awards vested	$ 59	$ 70	$ 20

Operations and summary of sig_5

Operations and summary of significant accounting policies (Details 2- Basis of presentation) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Equity investment method and Variable Interest Entity
Ownership percentage of investments in companies below which the entity must exercise significant influence in order to be accounted for under the equity method	20.00%
Variable Interest Entity, Not Primary Beneficiary
Equity investment method and Variable Interest Entity
Maximum loss exposure	$ 133	$ 131
Minimum
Equity investment method and Variable Interest Entity
Equity Method Investment, Ownership Percentage	20.00%

Operations and summary of sig_6

Operations and summary of significant accounting policies Operations and summary of significant accounting polices (Details 3- lease accounting) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid Expense and Other Assets, Current	$ 1,739	$ 1,748	$ 1,765
Property, Plant and Equipment, Net	12,904	13,548	13,574
Noncurrent deferred and refundable income taxes	1,411	1,362	1,439
Other Assets, Noncurrent	3,340	3,045	2,332
Accrued Liabilities, Current	3,750	3,546	3,573
Other Liabilities, Current	2,155	2,128	1,919
Long-term Debt, Due after One Year Machinery, Energy & Transportation, Noncurrent		7,643	8,005
Other Liabilities, Noncurrent	4,323	4,294	3,756
Retained Earnings (Accumulated Deficit)	$ 34,437	30,662	$ 30,427
Cumulative impact from adopting new lease guidance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid Expense and Other Assets, Current		(17)
Property, Plant and Equipment, Net		(26)
Noncurrent deferred and refundable income taxes		(77)
Other Assets, Noncurrent		713
Accrued Liabilities, Current		(27)
Other Liabilities, Current		209
Long-term Debt, Due after One Year Machinery, Energy & Transportation, Noncurrent		(362)
Other Liabilities, Noncurrent		538
Retained Earnings (Accumulated Deficit)		$ 235

Derivative financial instrume_4

Derivative financial instruments and risk management (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Derivative [Line Items]
Maximum length of time policy, foreign currency cash flow hedge	5 years
Foreign currency cash flow hedges, maximum period (in months)	60 months
Deferred net losses, foreign currency exchange rate risk, to be reclassified from equity to current earnings over the next twelve months	$ (1)
Commodity forward and option contracts, maximum period (in years)	5 years

Derivative financial instrume_5

Derivative financial instruments and risk management (Details 2) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Derivatives Fair Value
Asset Fair Value	$ 116	$ 131
Liability Fair Value	(71)	(150)
Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	32	19
Liability Fair Value	(21)	(87)
Financial Products
Derivatives Fair Value
Asset Fair Value	84	112
Liability Fair Value	(50)	(63)
Designated derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	51	24
Undesignated derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	(6)	(43)
Foreign exchange contracts | Designated derivatives | Receivables - trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	18	16
Foreign exchange contracts | Designated derivatives | Receivables - trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	54	53
Foreign exchange contracts | Designated derivatives | Long-term receivables - trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	9	0
Foreign exchange contracts | Designated derivatives | Long-term receivables - trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	13	35
Foreign exchange contracts | Designated derivatives | Accrued expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(20)	(26)
Foreign exchange contracts | Designated derivatives | Accrued expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(3)	(9)
Foreign exchange contracts | Designated derivatives | Other Liabilities | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	0	(9)
Foreign exchange contracts | Undesignated derivatives | Receivables - trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	1	2
Foreign exchange contracts | Undesignated derivatives | Receivables - trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	7	15
Foreign exchange contracts | Undesignated derivatives | Long-term receivables - trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	5	5
Foreign exchange contracts | Undesignated derivatives | Accrued expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	0	(21)
Foreign exchange contracts | Undesignated derivatives | Accrued expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(22)	(14)
Interest rate contracts | Designated derivatives | Receivables - trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	0	1
Interest rate contracts | Designated derivatives | Long-term receivables - trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	5	3
Interest rate contracts | Designated derivatives | Accrued expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(25)	(40)
Commodity contracts | Undesignated derivatives | Receivables - trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	4	1
Commodity contracts | Undesignated derivatives | Accrued expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	$ (1)	$ (31)

Derivative financial instrume_6

Derivative financial instruments and risk management (Details 3) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Machinery, Energy & Transportation
Derivative notional amounts
Derivative, Notional Amount	$ 2,563	$ 1,834
Financial Products
Derivative notional amounts
Derivative, Notional Amount	$ 8,931	$ 10,210

Derivative financial instrume_7

Derivative financial instruments and risk management (Details 4) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Amount of the line items in Statement 1 [Abstract]
Interest expense of Financial Products									$ 754	$ 722	$ 646
Other income (expense)									(57)	(67)	153
Sales and revenues	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 14,342	$ 13,510	$ 14,011	$ 12,859	53,800	54,722	45,462
Interest Expense Excluding Financial Products									421	404	531
Cost of goods sold	$ 9,117	$ 8,569	$ 9,941	$ 9,003	$ 9,987	$ 9,022	$ 9,422	$ 8,566	36,630	36,997	31,260
Financial Products
Amount of the line items in Statement 1 [Abstract]
Sales and revenues									3,045	2,900
Designated derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI									57	80	(5)
Amount of Gains (Losses) Reclassified from AOCI									66	131	(121)
Amount of the line items in Statement 1 [Abstract]
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									34	(47)	72
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation | Sales
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI									11
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation | Cost of goods sold
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI									(3)
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										(33)	(40)
Amount of the line items in Statement 1 [Abstract]
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									93	165	(77)
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Financial Products | Other Income (Expense)
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI									37	148	(81)
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)									0		0
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts | Financial Products | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI									33	19	6
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)										0	0
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI									0	0	0
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI									(4)	(3)	(9)
Amount of the line items in Statement 1 [Abstract]
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									(70)	(38)	0
Designated derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI									(8)	0	3
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)										0	0
Undesignated derivatives
Amount of the line items in Statement 1 [Abstract]
Gains (Losses) on Derivatives Not Designated as Hedging Instruments									(6)	(74)	111
Undesignated derivatives | Foreign exchange contracts | Machinery, Energy & Transportation | Other Income (Expense)
Amount of the line items in Statement 1 [Abstract]
Gains (Losses) on Derivatives Not Designated as Hedging Instruments									13	(54)	72
Undesignated derivatives | Foreign exchange contracts | Financial Products | Other Income (Expense)
Amount of the line items in Statement 1 [Abstract]
Gains (Losses) on Derivatives Not Designated as Hedging Instruments									(37)	19	9
Undesignated derivatives | Commodity contracts | Machinery, Energy & Transportation | Other Income (Expense)
Amount of the line items in Statement 1 [Abstract]
Gains (Losses) on Derivatives Not Designated as Hedging Instruments									$ 18	$ (39)	$ 30

Derivative financial instrume_8

Derivative financial instruments and risk management (Details 5) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Offsetting Assets
Gross Amount of Recognized Assets	$ 116	$ 131
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	116	131
Financial Instruments	(34)	(53)
Cash Collateral Received	0	0
Net Amount of Assets	82	78
Machinery, Energy & Transportation
Offsetting Assets
Gross Amount of Recognized Assets	32	19
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	32	19
Financial Instruments	(13)	(19)
Cash Collateral Received	0	0
Net Amount of Assets	19	0
Financial Products
Offsetting Assets
Gross Amount of Recognized Assets	84	112
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	84	112
Financial Instruments	(21)	(34)
Cash Collateral Received	0	0
Net Amount of Assets	$ 63	$ 78

Derivative financial instrume_9

Derivative financial instruments and risk management (Details 6) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Offsetting Liabilities
Cash collateral received or pledged under master netting agreements		$ 0
Gross Amount of Recognized Liabilities	$ (71)	(150)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(71)	(150)
Financial Instruments	34	53
Cash Collateral Pledged	0	0
Net Amount of Liabilities	37	97
Machinery, Energy & Transportation
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(21)	(87)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(21)	(87)
Financial Instruments	13	19
Cash Collateral Pledged	0	0
Net Amount of Liabilities	8	68
Financial Products
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(50)	(63)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(50)	(63)
Financial Instruments	21	34
Cash Collateral Pledged	0	0
Net Amount of Liabilities	$ 29	$ 29

Other income (expense) (Details

Other income (expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Income and Expenses [Abstract]
Investment and interest income	$ 202	$ 195	$ 122
Foreign exchange gains (losses)	(67)	(201)	(213)
License fee income	121	125	100
Gains (losses) on sale of securities and affiliated companies	30	4	187
Net periodic pension and OPEB income (cost), excluding service cost	(363)	(118)	(54)
Debt and Equity Securities, Gain (Loss)	35	(33)	0
Miscellaneous income (loss)	(15)	(39)	11
Other income (expense)	$ (57)	$ (67)	153
Iron Planet Holdings, Inc. investment
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Realized Gain (Loss) on Disposal			$ 85

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
(Decreases) increases in taxes resulting from:
Taxes at U.S. statutory rate	$ 1,641	$ 1,643	$ 1,429
Taxes at U. S. statutory rate (as a percent)	21.00%	21.00%	35.00%
Non-U.S. subsidiaries taxed at other than the U.S. rate	$ 365	$ 282	$ (282)
Non-U.S. subsidiaries taxed at other than the U.S. rate (as a percent)	4.70%	3.60%	(6.90%)
State and local taxes, net of federal	$ 59	$ 22	$ 27
State and local taxes, net of federal (as a percent)	0.80%	0.30%	0.70%
Interest and penalties, net of tax	$ 34	$ 33	$ 28
Interest and penalties, net of tax (as a percent)	0.40%	0.40%	0.70%
U.S. tax incentives	$ (149)	$ (106)	$ (52)
U.S. tax incentives (as a percent)	(1.90%)	(1.30%)	(1.30%)
Net excess tax benefits from stock-based compensation	$ (41)	$ (56)	$ (64)
Net excess tax benefits from stock-based compensation, percent	(0.50%)	(0.70%)	(1.60%)
U.S. deferred tax rate change	$ 0	$ (154)	$ 596
U.S. deferred tax rate change (as a percent)	0.00%	(2.00%)	14.60%
Mandatory deemed repatriation of non-U.S. earnings	$ (178)	$ 50	$ 1,775
Mandatory deemed repatriation of non-U.S. earnings (as a percent)	(2.30%)	0.70%	43.50%
Valuation allowances	$ 0	$ (29)	$ (111)
Valuation allowances (as a percent)	0.00%	(0.40%)	(2.70%)
Other-net	$ 15	$ 13	$ (7)
Other-net (as a percent)	0.20%	0.10%	(0.20%)
Provision (benefit) for income taxes	$ 1,746	$ 1,698	$ 3,339
Provision (benefit) for income taxes (as a percent)	22.40%	21.70%	81.80%
U.S. state taxing jurisdictions
(Decreases) increases in taxes resulting from:
Valuation allowances			$ (111)

Income taxes Income taxes (Deta

Income taxes Income taxes (Details 2) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Contingency
Pre-tax foreign currency permanent difference				$ 36	$ 180	$ (160)
Valuation allowances				$ 0	(29)	$ (111)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount					$ (25)
Taxes at U. S. statutory rate (as a percent)				21.00%	21.00%	35.00%
Adjustment to estimated tax for mandatory deemed repatriation of non-U.S. earnings	$ 178	$ 50		$ 178	$ 50
Adjustment to U.S. 2017 tax reform estimated impact					(104)
Correction of Prior Year Valuation Allowance			$ 59		59	$ (17)
U.S. 2017 tax reform provisionally estimated impact						2,371
Charge/ (benefit) to U.S. deferred tax rate change 2017 U.S. tax reform			$ (154)		(154)
Undistributed earnings of foreign subsidiaries				$ 14,000
U.S. state taxing jurisdictions
Income Tax Contingency
Valuation allowances						$ (111)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		$ (63)			(63)
Discretionary Contribution
Income Tax Contingency
Payment for Pension and Other Postretirement Benefits					$ 1,000

Income taxes (Details 3)

Income taxes (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of profit (loss) before taxes
U.S	$ 2,888	$ 2,131	$ 240
Non-U.S	4,924	5,691	3,842
Consolidated profit before taxes	7,812	7,822	4,082
Current tax provision (benefit):
U.S.	405	179	963
Non-U.S.	1,261	1,291	1,124
State (U.S.)	52	8	39
Current tax provision (benefit)	1,718	1,478	2,126
Deferred tax provision (benefit):
U.S.	17	298	1,385
Non-U.S.	(7)	4	(17)
State (U.S.)	18	(82)	(155)
Deferred tax provision (benefit)	28	220	1,213
Provision (benefit) for income taxes	1,746	1,698	3,339
Income Taxes Paid	$ 1,847	$ 1,429	$ 1,404

Income taxes (Details 4)

Income taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets
Noncurrent deferred and refundable income taxes	$ 1,324	$ 1,363
Deferred tax liabilities
Other liabilities	414	331
Deferred income taxes-net	$ 910	$ 1,032

Income taxes (Details 5)

Income taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred income tax assets:
Tax carryforwards	$ 1,218	$ 1,312
Postemployment benefits other than pensions	876	793
Pension	445	785
Warranty reserves	263	237
Research Expenditures	219	0
Allowance for credit losses	171	155
Post sale discounts	200	158
Other employee compensation and benefits	197	186
Lease Obligations	157	0
Stock-based compensation	107	121
Other-net	250	298
Deferred income tax assets, Total	4,103	4,045
Deferred income tax liabilities:
Capital and intangible assets, including lease basis differences	(1,574)	(1,381)
Bond discount	(122)	(127)
Translation	(194)	(190)
Other outside basis differences	(257)	(271)
Undistributed profits of non-U.S. subsidiaries	(118)	(129)
Deferred income tax liabilities, Total	(2,265)	(2,098)
Valuation allowance for deferred tax assets	(928)	(915)
Deferred income taxes-net	$ 910	$ 1,032

Income taxes (Details 6)

Income taxes (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating loss and Tax credit carryforwards
Valuation allowance for deferred tax assets	$ 928	$ 915
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	$ 264
U.S. state taxing jurisdictions
Operating loss and Tax credit carryforwards
Primary period of net operating loss carryforward expiration, years	20 years
State tax credit carryforward expiration, over period of years, and unlimited	15 years
U.S. state taxing jurisdictions | Primarily over the next 20 years
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	$ 1,320
Valuation allowance for deferred tax assets	172
U.S. state taxing jurisdictions | Expiration date next one to fifteen years
Operating loss and Tax credit carryforwards
Tax credit carryforwards	125
Non-U.S. taxing jurisdictions
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	4,375
Valuation allowance for deferred tax assets	750
Non-U.S. taxing jurisdictions | Expiring in 2020
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	104
Non-U.S. taxing jurisdictions | Expiring in 2021
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	53
Non-U.S. taxing jurisdictions | Expiring in 2022
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	81
Non-U.S. taxing jurisdictions | Expire between 2023-2025
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	59
Non-U.S. taxing jurisdictions | Expire between 2026-2040
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	451
Non-U.S. taxing jurisdictions | Unlimited
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	$ 3,627

Income taxes (Details 7)

Income taxes (Details 7) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Unrecognized tax benefits, beginning	$ 1,796	$ 1,286	$ 1,032
Additions for tax positions related to current year	72	61	270
Additions for tax positions related to prior years	112	461	20
Reductions for tax positions related to prior years	(201)	(5)	(27)
Reductions for settlements	0	(6)	(9)
Reductions for expiration of statute of limitations	(1)	(1)	0
Unrecognized tax benefits, ending	1,778	1,796	1,286
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	1,616	1,716	1,209
Net provision for interest and penalties	43	42	$ 38
Interest and penalties, accrued	233	$ 190
Income tax examination, proposed liability increase/(decrease)	$ 2,300

Cat Financial Financing Activ_3

Cat Financial Financing Activities (Details) - Wholesale receivables - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Contractual maturities of wholesale inventory receivables
2020	$ 695
2021	283
2022	198
2023	83
2024	41
Thereafter	37
Total	1,337
Guaranteed residual value	75
Unguaranteed residual value	33
Less: Unearned Income	(44)
Total	1,401	$ 1,308
Wholesale loans
Contractual maturities of wholesale inventory receivables
2020	630
2021	235
2022	166
2023	61
2024	27
Thereafter	21
Total	1,140
Guaranteed residual value	25
Unguaranteed residual value	0
Less: Unearned Income	(10)
Total	1,155
Wholesale Leases
Contractual maturities of wholesale inventory receivables
2020	65
2021	48
2022	32
2023	22
2024	14
Thereafter	16
Total	197
Guaranteed residual value	50
Unguaranteed residual value	33
Less: Unearned Income	(34)
Total	$ 246

Cat Financial Financing Activ_4

Cat Financial Financing Activities (Details 2) - Finance Receivables - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Contractual maturities of outstanding finance receivables
2020	$ 9,414
2021	5,587
2022	3,686
2023	2,106
2024	804
Thereafter	479
Total	22,076
Guaranteed residual value	443
Unguaranteed residual value	798
Less: Unearned Income	(920)
Total	22,397	$ 22,426
Retail loans
Contractual maturities of outstanding finance receivables
2020	6,280
2021	3,582
2022	2,610
2023	1,634
2024	622
Thereafter	417
Total	15,145
Guaranteed residual value	53
Unguaranteed residual value	0
Less: Unearned Income	(265)
Total	14,933
Retail Leases
Contractual maturities of outstanding finance receivables
2020	3,134
2021	2,005
2022	1,076
2023	472
2024	182
Thereafter	62
Total	6,931
Guaranteed residual value	390
Unguaranteed residual value	798
Less: Unearned Income	(655)
Total	$ 7,464

Cat Financial Financing Activ_5

Cat Financial Financing Activities (Details 3) - Finance Receivables - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Allowance for credit loss activity:
Balance at beginning of year	$ 507	$ 362
Receivables written off	(281)	(235)
Recoveries on receivables previously written off	44	46
Provision for credit losses	162	349
Other	(12)	(15)
Balance at end of year	420	507
Allowance for Credit Losses:
Individually evaluated for impairment			$ 217	$ 302
Collectively evaluated for impairment			203	205
Ending Balance	507	507	420	507
Recorded Investment in Finance Receivables:
Individually evaluated for impairment			672	936
Collectively evaluated for impairment			21,725	21,490
Total			22,397	22,426
Customer
Allowance for credit loss activity:
Balance at beginning of year	486	353
Receivables written off	(281)	(235)
Recoveries on receivables previously written off	44	46
Provision for credit losses	138	337
Other	(12)	(15)
Balance at end of year	375	486
Allowance for Credit Losses:
Individually evaluated for impairment			178	288
Collectively evaluated for impairment			197	198
Ending Balance	486	486	375	486
Recorded Investment in Finance Receivables:
Individually evaluated for impairment			594	858
Collectively evaluated for impairment			18,093	18,152
Total			18,687	19,010
Dealer
Allowance for credit loss activity:
Balance at beginning of year	21	9
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	24	12
Other	0	0
Balance at end of year	45	21
Allowance for Credit Losses:
Individually evaluated for impairment			39	14
Collectively evaluated for impairment			6	7
Ending Balance	$ 21	$ 21	45	21
Recorded Investment in Finance Receivables:
Individually evaluated for impairment			78	78
Collectively evaluated for impairment			3,632	3,338
Total			$ 3,710	$ 3,416

Cat Financial Financing Activ_6

Cat Financial Financing Activities (Details 4) - Finance Receivables - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Recorded investment aging
Financing Receivable, Past Due	$ 926	$ 1,038
Current	21,471	21,388
Total	22,397	22,426
91 Days or More Past Due and Still Accruing	29	24
31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	198	184
61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	101	67
91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	627	787
Customer
Recorded investment aging
Total	18,687	19,010
Customer | North America
Recorded investment aging
Financing Receivable, Past Due	150	167
Current	8,038	7,825
Total	8,188	7,992
91 Days or More Past Due and Still Accruing	15	14
Customer | North America | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	72	65
Customer | North America | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	23	18
Customer | North America | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	55	84
Customer | EAME
Recorded investment aging
Financing Receivable, Past Due	202	181
Current	2,955	2,850
Total	3,157	3,031
91 Days or More Past Due and Still Accruing	4	5
Customer | EAME | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	30	19
Customer | EAME | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	31	9
Customer | EAME | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	141	153
Customer | Asia Pacific
Recorded investment aging
Financing Receivable, Past Due	83	41
Current	2,440	2,409
Total	2,523	2,450
91 Days or More Past Due and Still Accruing	8	5
Customer | Asia Pacific | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	40	24
Customer | Asia Pacific | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	14	9
Customer | Asia Pacific | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	29	8
Customer | Mining
Recorded investment aging
Financing Receivable, Past Due	24	38
Current	1,851	1,642
Total	1,875	1,680
91 Days or More Past Due and Still Accruing	0	0
Customer | Mining | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	5	28
Customer | Mining | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	1
Customer | Mining | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	19	9
Customer | Latin America
Recorded investment aging
Financing Receivable, Past Due	144	138
Current	1,136	1,421
Total	1,280	1,559
91 Days or More Past Due and Still Accruing	2	0
Customer | Latin America | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	41	38
Customer | Latin America | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	23	29
Customer | Latin America | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	80	71
Customer | Caterpillar Power Finance
Recorded investment aging
Financing Receivable, Past Due	245	395
Current	1,419	1,903
Total	1,664	2,298
91 Days or More Past Due and Still Accruing	0	0
Customer | Caterpillar Power Finance | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	10	10
Customer | Caterpillar Power Finance | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	10	1
Customer | Caterpillar Power Finance | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	225	384
Dealer
Recorded investment aging
Total	3,710	3,416
Dealer | North America
Recorded investment aging
Financing Receivable, Past Due	0	0
Current	2,136	1,895
Total	2,136	1,895
91 Days or More Past Due and Still Accruing	0	0
Dealer | North America | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | North America | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | North America | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | EAME
Recorded investment aging
Financing Receivable, Past Due	0	0
Current	342	333
Total	342	333
91 Days or More Past Due and Still Accruing	0	0
Dealer | EAME | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | EAME | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | EAME | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Asia Pacific
Recorded investment aging
Financing Receivable, Past Due	0	0
Current	437	466
Total	437	466
91 Days or More Past Due and Still Accruing	0	0
Dealer | Asia Pacific | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Asia Pacific | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Asia Pacific | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Mining
Recorded investment aging
Financing Receivable, Past Due	0	0
Current	4	4
Total	4	4
91 Days or More Past Due and Still Accruing	0	0
Dealer | Mining | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Mining | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Mining | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Latin America
Recorded investment aging
Financing Receivable, Past Due	78	78
Current	712	638
Total	790	716
91 Days or More Past Due and Still Accruing	0	0
Dealer | Latin America | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Latin America | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Latin America | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	78	78
Dealer | Caterpillar Power Finance
Recorded investment aging
Financing Receivable, Past Due	0	0
Current	1	2
Total	1	2
91 Days or More Past Due and Still Accruing	0	0
Dealer | Caterpillar Power Finance | 31 to 60 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Caterpillar Power Finance | 61 to 90 Days Past Due
Recorded investment aging
Financing Receivable, Past Due	0	0
Dealer | Caterpillar Power Finance | 91 Days or More Past Due
Recorded investment aging
Financing Receivable, Past Due	$ 0	$ 0

Cat Financial Financing Activ_7

Cat Financial Financing Activities (Details 5) - Finance Receivables - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Customer
Impaired finance receivables
Impaired finance receivable	$ 594	$ 858
Related Allowance	178	288
Recorded Investment With No Allowance Recorded	94	142
Unpaid Principal Balance With No Allowance Recorded	94	156
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	500	716
Unpaid Principal Balance With An Allowance Recorded	512	722
Unpaid Principal Balance, Total	606	878
Average Recorded Investment With No Allowance Recorded	117	282	$ 496
Interest Income Recognized With No Allowance Recorded	5	15	23
Average Recorded Investment With An Allowance Recorded	640	597	365
Interest Income Recognized With An Allowance Recorded	23	22	13
Interest Income Recognized, Total	28	37	36
Average Recorded Investment, Total	757	879	861
Customer | North America
Impaired finance receivables
Impaired finance receivable	36	50
Related Allowance	11	14
Recorded Investment With No Allowance Recorded	6	10
Unpaid Principal Balance With No Allowance Recorded	6	10
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	30	40
Unpaid Principal Balance With An Allowance Recorded	30	41
Unpaid Principal Balance, Total	36	51
Average Recorded Investment With No Allowance Recorded	9	16	13
Interest Income Recognized With No Allowance Recorded	0	1	1
Average Recorded Investment With An Allowance Recorded	34	49	49
Interest Income Recognized With An Allowance Recorded	2	2	1
Interest Income Recognized, Total	2	3	2
Average Recorded Investment, Total	43	65	62
Customer | EAME
Impaired finance receivables
Impaired finance receivable	61	93
Related Allowance	29	57
Recorded Investment With No Allowance Recorded	0	1
Unpaid Principal Balance With No Allowance Recorded	0	1
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	61	92
Unpaid Principal Balance With An Allowance Recorded	61	92
Unpaid Principal Balance, Total	61	93
Average Recorded Investment With No Allowance Recorded	6	14	48
Interest Income Recognized With No Allowance Recorded	0	0	1
Average Recorded Investment With An Allowance Recorded	81	53	6
Interest Income Recognized With An Allowance Recorded	2	2	0
Interest Income Recognized, Total	2	2	1
Average Recorded Investment, Total	87	67	54
Customer | Asia Pacific
Impaired finance receivables
Impaired finance receivable	8	4
Related Allowance	2	2
Recorded Investment With No Allowance Recorded	0	0
Unpaid Principal Balance With No Allowance Recorded	0	0
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	8	4
Unpaid Principal Balance With An Allowance Recorded	8	4
Unpaid Principal Balance, Total	8	4
Average Recorded Investment With No Allowance Recorded	0	27	24
Interest Income Recognized With No Allowance Recorded	0	3	2
Average Recorded Investment With An Allowance Recorded	9	4	31
Interest Income Recognized With An Allowance Recorded	1	0	2
Interest Income Recognized, Total	1	3	4
Average Recorded Investment, Total	9	31	55
Customer | Mining
Impaired finance receivables
Impaired finance receivable	59	89
Related Allowance	9	26
Recorded Investment With No Allowance Recorded	22	33
Unpaid Principal Balance With No Allowance Recorded	22	33
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	37	56
Unpaid Principal Balance With An Allowance Recorded	36	55
Unpaid Principal Balance, Total	58	88
Average Recorded Investment With No Allowance Recorded	27	57	126
Interest Income Recognized With No Allowance Recorded	1	2	7
Average Recorded Investment With An Allowance Recorded	48	46	0
Interest Income Recognized With An Allowance Recorded	2	3	0
Interest Income Recognized, Total	3	5	7
Average Recorded Investment, Total	75	103	126
Customer | Latin America
Impaired finance receivables
Impaired finance receivable	66	104
Related Allowance	20	25
Recorded Investment With No Allowance Recorded	8	29
Unpaid Principal Balance With No Allowance Recorded	8	29
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	58	75
Unpaid Principal Balance With An Allowance Recorded	58	75
Unpaid Principal Balance, Total	66	104
Average Recorded Investment With No Allowance Recorded	21	38	64
Interest Income Recognized With No Allowance Recorded	1	2	3
Average Recorded Investment With An Allowance Recorded	72	67	99
Interest Income Recognized With An Allowance Recorded	5	3	4
Interest Income Recognized, Total	6	5	7
Average Recorded Investment, Total	93	105	163
Customer | Caterpillar Power Finance
Impaired finance receivables
Impaired finance receivable	364	518
Related Allowance	107	164
Recorded Investment With No Allowance Recorded	58	69
Unpaid Principal Balance With No Allowance Recorded	58	83
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	306	449
Unpaid Principal Balance With An Allowance Recorded	319	455
Unpaid Principal Balance, Total	377	538
Average Recorded Investment With No Allowance Recorded	54	130	221
Interest Income Recognized With No Allowance Recorded	3	7	9
Average Recorded Investment With An Allowance Recorded	396	378	180
Interest Income Recognized With An Allowance Recorded	11	12	6
Interest Income Recognized, Total	14	19	15
Average Recorded Investment, Total	450	508	401
Dealer
Impaired finance receivables
Impaired finance receivable			0
Average Recorded Investment, Total		0	$ 0
Dealer | Latin America
Impaired finance receivables
Impaired finance receivable	78	78
Related Allowance	$ 39	$ 14

Cat Financial Finacning Activit

Cat Financial Finacning Activities (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Period after which Collection of Future Income is Considered as Not Probable	120 days
Finance Receivables
Financing Receivable, Past Due [Line Items]
Period after which Collection of Future Income is Considered as Not Probable	120 days
Finance Receivables | Dealer | Latin America
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 78	$ 78
Finance Receivables | Customer
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	727	807
Finance Receivables | Customer | North America
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	44	77
Finance Receivables | Customer | EAME
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	165	154
Finance Receivables | Customer | Asia Pacific
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	21	4
Finance Receivables | Customer | Mining
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	47	50
Finance Receivables | Customer | Latin America
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	89	106
Finance Receivables | Customer | Caterpillar Power Finance
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 361	$ 416

Cat Financial Financing Activ_8

Cat Financial Financing Activities (Details 7) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)Contracts	Dec. 31, 2018USD ($)Contracts	Dec. 31, 2017USD ($)CustomerContracts
Finance Receivables | Customer
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	62	52	144
Pre-TDR Outstanding Recorded Investment	$ 209	$ 186	$ 579
Post-TDR Outstanding Recorded Investment	$ 204	$ 152	$ 557
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	12	16	252
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 15	$ 44	$ 21
Finance Receivables | Customer | North America
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	15	38	43
Pre-TDR Outstanding Recorded Investment	$ 11	$ 21	$ 34
Post-TDR Outstanding Recorded Investment	$ 11	$ 21	$ 35
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	11	10	4
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 5	$ 10	$ 3
Finance Receivables | Customer | EAME
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	19	0	4
Pre-TDR Outstanding Recorded Investment	$ 17	$ 0	$ 1
Post-TDR Outstanding Recorded Investment	$ 17	$ 0	$ 1
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	0	0	1
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 0	$ 0	$ 0
Finance Receivables | Customer | Asia Pacific
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	0	0	10
Pre-TDR Outstanding Recorded Investment	$ 0	$ 0	$ 39
Post-TDR Outstanding Recorded Investment	$ 0	$ 0	$ 31
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	0	0	4
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 0	$ 0	$ 1
Finance Receivables | Customer | Mining
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	2	1	2
Pre-TDR Outstanding Recorded Investment	$ 8	$ 29	$ 57
Post-TDR Outstanding Recorded Investment	$ 8	$ 29	$ 56
Finance Receivables | Customer | Latin America
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	5	1	17
Pre-TDR Outstanding Recorded Investment	$ 5	$ 3	$ 26
Post-TDR Outstanding Recorded Investment	$ 3	$ 3	$ 27
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	0	3	243
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 0	$ 1	$ 17
Finance Receivables | Customer | Caterpillar Power Finance
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	21	12	68
Pre-TDR Outstanding Recorded Investment	$ 168	$ 133	$ 422
Post-TDR Outstanding Recorded Investment	$ 165	$ 99	$ 407
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts	1	3	0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 10	$ 33	$ 0
Finance Receivables | Dealer
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts)	0	0	0
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers [Member] | Customer | Latin America
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) | Contracts			238
Financing Receivable, Troubled Debt Restructuring, Subsequent Default			$ 16
Number of Significant Customers Disclosed			2
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers [Member] | Customer | Caterpillar Power Finance
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) | Contracts			48
Pre-TDR Outstanding Recorded Investment			$ 265
Post-TDR Outstanding Recorded Investment			$ 258
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Significant Customers Disclosed | Customer			6

Inventories (Details)

Inventories (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2017	Dec. 31, 2018
Inventory Disclosure [Abstract]
Effect of LIFO inventory liquidation on cost of goods sold		$ 66
Effect of LIFO Inventory Liquidation on Income		$ 49
Effect of LIFO inventory liquidation on profit per share		$ 0.08
Percentage of LIFO Inventory	60.00%		65.00%
Raw materials	$ 4,263		$ 4,477
Work-in-process	1,147		1,259
Finished goods	5,598		5,562
Supplies	258		231
Total inventories	11,266		$ 11,529
Long-term material purchase obligations	$ 270

Property, plant and equipment_2

Property, plant and equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Property, plant and equipment
Total property, plant and equipment, at cost	$ 29,217		$ 29,781
Less: Accumulated depreciation	(16,313)		(16,207)
Property, plant and equipment - net	12,904	$ 13,548	13,574
Land
Property, plant and equipment
Total property, plant and equipment, at cost	664		671
Buildings and land improvements
Property, plant and equipment
Total property, plant and equipment, at cost	6,710		6,977
Machinery, equipment and other
Property, plant and equipment
Total property, plant and equipment, at cost	13,287		13,733
Software
Property, plant and equipment
Total property, plant and equipment, at cost	1,728		1,703
Equipment leased to others
Property, plant and equipment
Total property, plant and equipment, at cost	6,208		6,015
Construction-in-process
Property, plant and equipment
Total property, plant and equipment, at cost	$ 620		$ 682
Minimum | Buildings and land improvements
Property, plant and equipment
Useful Lives (Years)	20 years
Minimum | Machinery, equipment and other
Property, plant and equipment
Useful Lives (Years)	2 years
Minimum | Software
Property, plant and equipment
Useful Lives (Years)	3 years
Minimum | Equipment leased to others
Property, plant and equipment
Useful Lives (Years)	1 year
Maximum | Buildings and land improvements
Property, plant and equipment
Useful Lives (Years)	45 years
Maximum | Machinery, equipment and other
Property, plant and equipment
Useful Lives (Years)	10 years
Maximum | Software
Property, plant and equipment
Useful Lives (Years)	7 years
Maximum | Equipment leased to others
Property, plant and equipment
Useful Lives (Years)	7 years

Intangible assets and goodwil_2

Intangible assets and goodwill (Details Intangible assets) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 02, 2018
Intangible assets by major class
Weighted Amortizable Life (in years)	14 years	14 years
Gross Carrying Amount	$ 4,151	$ 4,219
Accumulated Amortization	(2,586)	(2,322)
Net	1,565	1,897
Amortization expense	324	$ 331	$ 323
Intangible Assets, Expected Amortization Expense
2020	310
2021	292
2022	273
2023	215
2024	158
Thereafter	$ 317
ECM S.p.A.
Intangible assets by major class
Finite-lived intangible assets acquired				$ 112
Downer Freight Rail
Intangible assets by major class
Finite-lived intangible assets acquired				$ 6
Customer relationships
Intangible assets by major class
Weighted Amortizable Life (in years)	15 years	15 years
Gross Carrying Amount	$ 2,450	$ 2,463
Accumulated Amortization	(1,406)	(1,249)
Net	$ 1,044	$ 1,214
Intellectual property
Intangible assets by major class
Weighted Amortizable Life (in years)	12 years	11 years
Gross Carrying Amount	$ 1,510	$ 1,557
Accumulated Amortization	(1,055)	(965)
Net	$ 455	$ 592
Other
Intangible assets by major class
Weighted Amortizable Life (in years)	13 years	13 years
Gross Carrying Amount	$ 191	$ 199
Accumulated Amortization	(125)	(108)
Net	$ 66	$ 91

Intangible assets and goodwil_3

Intangible assets and goodwill (Details 2 Goodwill) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 02, 2018
Goodwill by reportable segment
Goodwill impairment charge	$ 0	$ 0	$ 0
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	7,414	7,397
Impairments, beginning of year	(1,197)	(1,197)
Goodwill, Acquired	0	127
Other Adjustments	(21)	(110)
Goodwill, end of year	7,393	7,414	7,397
Impairments, end of year	(1,197)	(1,197)	(1,197)
Net goodwill	6,196	6,217	6,200
Construction Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	304	305
Impairments, beginning of year	(22)	(22)
Goodwill, Acquired	0	0
Other Adjustments	2	(1)
Goodwill, end of year	306	304	305
Impairments, end of year	(22)	(22)	(22)
Net goodwill	284	282	283
Resource Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	4,172	4,232
Impairments, beginning of year	(1,175)	(1,175)
Goodwill, Acquired	0	0
Other Adjustments	(16)	(60)
Goodwill, end of year	4,156	4,172	4,232
Impairments, end of year	(1,175)	(1,175)	(1,175)
Net goodwill	2,981	2,997	3,057
Energy & Transportation
Goodwill by reportable segment
Goodwill acquired in business combination				$ 127
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	2,882	2,806
Goodwill, Acquired	0	127
Other Adjustments	(7)	(51)
Goodwill, end of year	2,875	2,882	2,806
All Other
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	56	54
Goodwill, Acquired	0	0
Other Adjustments	0	2
Goodwill, end of year	$ 56	$ 56	$ 54
ECM S.p.A.
Goodwill by reportable segment
Goodwill acquired in business combination				109
Downer Freight Rail
Goodwill by reportable segment
Goodwill acquired in business combination				$ 18

Investments in debt and equit_3

Investments in debt and equity securities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Schedule of Debt and Equity Securities
Cost Basis	$ 1,340	$ 1,171
Unrealized Pretax Net Gains (Losses)	25	(20)
Fair Value	1,365	1,151
Government debt - U.S. treasury bonds
Schedule of 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 Debt and Equity Securities
Cost Basis	54	42
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	54	42
Corporate bonds
Schedule of Debt and Equity Securities
Cost Basis	836	735
Unrealized Pretax Net Gains (Losses)	20	(15)
Fair Value	856	720
Corporate bonds - Asset-backed securities
Schedule of Debt and Equity Securities
Cost Basis	62	63
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	62	63
U.S. governmental agency mortgage-backed securities
Schedule of Debt and Equity Securities
Cost Basis	327	301
Unrealized Pretax Net Gains (Losses)	4	(4)
Fair Value	331	297
Mortgage-backed securities - Residential
Schedule of Debt and Equity Securities
Cost Basis	6	7
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	6	7
Mortgage-backed securities - Commercial
Schedule of Debt and Equity Securities
Cost Basis	46	14
Unrealized Pretax Net Gains (Losses)	1	(1)
Fair Value	$ 47	$ 13

Investments in debt and equit_4

Investments in debt and equity securities (Details 2) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale Investments, Continuous Unrealized Loss Position
Unrealized loss for available for sale investments in an unrealized loss position that are not other-than temporarily impaired	$ 1	$ 21

Investments in debt and equit_5

Investments in debt and equity securities (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost Basis	$ 80
Due after one year through five years, Cost Basis	701
Due after five years through ten years, Cost Basis	148
Due after ten years, Cost Basis	32
Due in one year or less, Fair Value	80
Due after one year through five years, Fair Value	715
Due after five years through ten years, Fair Value	153
Due after ten years, Fair Value	33
Cost Basis	1,340	$ 1,171
Fair Value	1,365	1,151
Schedule of Debt and Equity Securities
Proceeds from Sale of Debt Securities, Available-for-sale	260	247	$ 930
Available-for-sale Securities, Proceeds, Gains and Losses
Debt Securities, Available-for-sale, Realized Gain	1	0	109
Debt Securities, Available-for-sale, Realized Loss	1	0	$ 5
Unrealized gain (loss) on equity securities held on report date	29	(25)
U.S. governmental agency mortgage-backed securities
Investments, Debt and Equity Securities [Abstract]
Cost Basis	327	301
Fair Value	331	297
Mortgage-backed securities - Residential
Investments, Debt and Equity Securities [Abstract]
Cost Basis	6	7
Fair Value	6	7
Mortgage-backed securities - Commercial
Investments, Debt and Equity Securities [Abstract]
Cost Basis	46	14
Fair Value	$ 47	$ 13

Postemployment benefit plans (D

Postemployment benefit plans (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Non-U.S. pensions
Defined Benefit Plan Disclosure
Curtailments, settlements and termination benefits	$ 20

Postemployment benefit plans _2

Postemployment benefit plans (Details 2) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Change in benefit obligation:
Actuarial losses (gains)	$ 468	$ 495	$ 468	$ 495	$ 301
Components of net amount recognized in financial position:
Liability for postemployment benefits	$ 6,599	$ 7,455	$ 6,599	$ 7,455
U.S. pensions
Weighted-average assumptions used to determine benefit obligation, end of year:
Discount rate (as a percent)	3.20%	4.20%	3.20%	4.20%
Rate of compensation increase (as a percent)	0.00%	4.00%	0.00%	4.00%
Accumulated benefit obligation, end of year	$ 17,773	$ 15,877	$ 17,773	$ 15,877
Change in benefit obligation:
Benefit obligation, beginning of year			15,953	17,326
Service cost			115	125	115
Interest cost			600	534	525
Plan amendments			0	0
Actuarial losses (gains)			2,090	(1,058)
Foreign currency exchange rates			0	0
Participant contributions			0	0
Benefits paid - gross			(982)	(971)
Less: federal subsidy on benefits paid			0	0
Curtailments, settlements and termination benefits			(3)	(3)
Benefit obligation, end of year	17,773	15,953	17,773	15,953	17,326
Change in plan assets:
Fair value of plan assets, beginning of year			12,697	13,416
Actual return on plan assets			2,740	(784)
Foreign currency exchange rates			0	0
Company contributions			1,542	1,039
Participant contributions			0	0
Benefits paid			(982)	(971)
Settlements and termination benefits			(3)	(3)
Fair value of plan assets, end of year	15,994	12,697	15,994	12,697	13,416
Funded Status, end of year
Over (under) funded status	(1,779)	(3,256)	(1,779)	(3,256)
Components of net amount recognized in financial position:
Other assets (non-current asset)	219	9	219	9
Accrued wages, salaries and employee benefits (current liability)	(42)	(40)	(42)	(40)
Liability for postemployment benefits (non-current liability)	(1,956)	(3,225)	(1,956)	(3,225)
Net liability recognized	(1,779)	(3,256)	(1,779)	(3,256)
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Prior service cost (credit)	$ 0	$ 0	$ 0	$ 0
Non-U.S. pensions
Weighted-average assumptions used to determine benefit obligation, end of year:
Discount rate (as a percent)	1.90%	2.50%	1.90%	2.50%
Rate of compensation increase (as a percent)	2.00%	3.00%	2.00%	3.00%
Accumulated benefit obligation, end of year	$ 4,502	$ 4,038	$ 4,502	$ 4,038
Change in benefit obligation:
Benefit obligation, beginning of year			4,215	4,606
Service cost			80	89	95
Interest cost			94	96	101
Plan amendments			(5)	26
Actuarial losses (gains)			424	(88)
Foreign currency exchange rates			95	(205)
Participant contributions			7	6
Benefits paid - gross			(237)	(277)
Less: federal subsidy on benefits paid			0	0
Curtailments, settlements and termination benefits			(7)	(38)
Benefit obligation, end of year	4,666	4,215	4,666	4,215	4,606
Change in plan assets:
Fair value of plan assets, beginning of year			4,025	4,305
Actual return on plan assets			482	13
Foreign currency exchange rates			105	(187)
Company contributions			143	165
Participant contributions			7	6
Benefits paid			(237)	(277)
Settlements and termination benefits			0	0
Fair value of plan assets, end of year	4,525	4,025	4,525	4,025	4,305
Funded Status, end of year
Over (under) funded status	(141)	(190)	(141)	(190)
Components of net amount recognized in financial position:
Other assets (non-current asset)	485	442	485	442
Accrued wages, salaries and employee benefits (current liability)	(19)	(20)	(19)	(20)
Liability for postemployment benefits (non-current liability)	(607)	(612)	(607)	(612)
Net liability recognized	(141)	(190)	(141)	(190)
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Prior service cost (credit)	$ 16	$ 20	$ 16	$ 20
Other postretirement benefits
Weighted-average assumptions used to determine benefit obligation, end of year:
Discount rate (as a percent)	3.20%	4.20%	3.20%	4.20%
Rate of compensation increase (as a percent)	4.00%	4.00%	4.00%	4.00%
Change in benefit obligation:
Benefit obligation, beginning of year			$ 3,649	$ 4,002
Service cost			80	83	78
Interest cost			136	125	130
Plan amendments			8	(25)
Actuarial losses (gains)			350	(195)
Foreign currency exchange rates			(1)	(28)
Participant contributions			46	51
Benefits paid - gross			(316)	(369)
Less: federal subsidy on benefits paid			9	7
Curtailments, settlements and termination benefits			(1)	(2)
Benefit obligation, end of year	$ 3,960	$ 3,649	3,960	3,649	4,002
Change in plan assets:
Fair value of plan assets, beginning of year			328	504
Actual return on plan assets			71	(5)
Foreign currency exchange rates			0	0
Company contributions			127	147
Participant contributions			46	51
Benefits paid			(316)	(369)
Settlements and termination benefits			(1)	0
Fair value of plan assets, end of year	255	328	255	328	$ 504
Funded Status, end of year
Over (under) funded status	(3,705)	(3,321)	(3,705)	(3,321)
Components of net amount recognized in financial position:
Other assets (non-current asset)	0	0	0	0
Accrued wages, salaries and employee benefits (current liability)	(161)	(173)	(161)	(173)
Liability for postemployment benefits (non-current liability)	(3,544)	(3,148)	(3,544)	(3,148)
Net liability recognized	(3,705)	(3,321)	(3,705)	(3,321)
Liability for postemployment benefits	60	119	60	119
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Prior service cost (credit)	(78)	(126)	(78)	(126)
Defined contribution
Components of net amount recognized in financial position:
Liability for postemployment benefits	$ 432	$ 351	$ 432	$ 351

Postemployment benefit plans _3

Postemployment benefit plans (Details 3) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
U.S. pensions
Pension plans with projected benefit obligations in excess of plan assets
Projected Benefit Obligations	$ 14,037	$ 15,614
Accumulated benefit obligation	14,037	15,541
Fair value of plant assets	12,039	12,349
Pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation	14,037	15,614
Accumulated benefit obligation	14,037	15,541
Fair value of plan assets	12,039	12,349
Non-U.S. pensions
Pension plans with projected benefit obligations in excess of plan assets
Projected Benefit Obligations	2,010	1,821
Accumulated benefit obligation	1,896	1,723
Fair value of plant assets	1,384	1,189
Pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation	1,875	1,655
Accumulated benefit obligation	1,799	1,603
Fair value of plan assets	$ 1,269	$ 1,047

Postemployment benefit plans _4

Postemployment benefit plans (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
U.S. pensions
Components of net periodic benefit cost:
Service cost	$ 115	$ 125	$ 115
Interest cost	600	534	525
Expected return on plan assets	(721)	(808)	(734)
Curtailments, settlements and termination benefits	(1)	0	9
Amortization of prior service cost / (credit)	0	0	0
Actuarial loss / (gain)	72	534	481
Net periodic benefit cost (benefit)	65	385	396
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year prior service cost (credit)	0	0	0
Amortization of prior service (cost) credit	0	0	0
Total recognized in other comprehensive income	0	0	0
Total recognized in net periodic cost and other comprehensive income	$ 65	$ 385	$ 396
Weighted-average assumptions used to determine net cost:
Discount rate (as a percent)	4.30%	3.70%	4.20%
Discount rate used to measure interest cost (as a percent)	3.90%	3.20%	3.30%
Expected return on plan assets (as a percent)	5.90%	6.30%	6.70%
Rate of compensation increase (as a percent)	4.00%	4.00%	4.00%
Expected return on plan assets, next fiscal year (as a percent)	5.10%
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) during the next fiscal year
Additional percentage amount added to long-term passive rate of returns to arrive at the long-term expected rate of return (as a percent)	0.40%	0.75%	0.80%
Non-U.S. pensions
Components of net periodic benefit cost:
Service cost	$ 80	$ 89	$ 95
Interest cost	94	96	101
Expected return on plan assets	(148)	(221)	(231)
Curtailments, settlements and termination benefits	(7)	(33)	15
Amortization of prior service cost / (credit)	0	0	(2)
Actuarial loss / (gain)	90	111	(195)
Net periodic benefit cost (benefit)	109	42	(217)
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year prior service cost (credit)	(4)	20	3
Amortization of prior service (cost) credit	0	0	2
Total recognized in other comprehensive income	(4)	20	5
Total recognized in net periodic cost and other comprehensive income	$ 105	$ 62	$ (212)
Weighted-average assumptions used to determine net cost:
Discount rate (as a percent)	2.50%	2.30%	2.40%
Discount rate used to measure interest cost (as a percent)	2.30%	2.20%	2.30%
Expected return on plan assets (as a percent)	3.80%	5.20%	5.90%
Rate of compensation increase (as a percent)	3.00%	4.00%	4.00%
Expected return on plan assets, next fiscal year (as a percent)	3.20%
Other postretirement benefits
Components of net periodic benefit cost:
Service cost	$ 80	$ 83	$ 78
Interest cost	136	125	130
Expected return on plan assets	(18)	(32)	(37)
Curtailments, settlements and termination benefits	0	(2)	0
Amortization of prior service cost / (credit)	(40)	(36)	(23)
Actuarial loss / (gain)	306	(150)	15
Net periodic benefit cost (benefit)	464	(12)	163
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year prior service cost (credit)	8	(20)	(77)
Amortization of prior service (cost) credit	40	36	23
Total recognized in other comprehensive income	48	16	(54)
Total recognized in net periodic cost and other comprehensive income	$ 512	$ 4	$ 109
Weighted-average assumptions used to determine net cost:
Discount rate (as a percent)	4.10%	3.50%	3.90%
Discount rate used to measure interest cost (as a percent)	3.90%	3.20%	3.30%
Expected return on plan assets (as a percent)	7.20%	7.50%	7.50%
Rate of compensation increase (as a percent)	4.10%	4.00%	4.00%
Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) during the next fiscal year
Prior service cost (credit)	$ (38)
Assumed increase in health care trend rate
Assumed increase in health care trend rate over the current period to calculate benefit expenses (as a percent)	6.10%
Assumed increase in health care trend rate for the next year to calculate benefit expenses (as a percent)	6.10%
Year that heath care trend rate is assumed to reach ultimate trend rate (year)	2025
Ultimate health care cost trend rate (as a percent)	5.00%
General inflation rate that forms a part of ultimate health care trend rate (as a percent)	3.00%
Additional healthcare inflation rate that forms a part of ultimate health care trend rate (as a percent)	2.00%
Effect of a one-percentage-point change in assumed health care cost trend
Effect of a one-percentage-point increase in current year service and interest cost components of other postretirement benefit cost	$ 13
Effect of a one-percentage-point decrease in current year service and interest cost components of other postretirement benefit cost	(11)
Effect of a one-percentage-point increase on accumulated postretirement benefit obligation	158
Effect of a one-percentage-point decrease on accumulated postretirement benefit obligation	$ (133)

Postemployment benefit plans _5

Postemployment benefit plans (Details 5) $ in Millions	Dec. 31, 2019USD ($)
U.S. pensions
Expected contributions and benefit payments for pension and other Postretirement benefit plans
Employer contribution expected for 2020	$ 40
Expected benefit payments for 2020	1,020
Expected benefit payments for 2021	1,010
Expected benefit payments for 2022	1,010
Expected benefit payments for 2023	1,010
Expected benefit payments for 2024	1,010
Expected benefit payments from 2025-2029	5,005
Total expected benefit payments	10,065
Non-U.S. pensions
Expected contributions and benefit payments for pension and other Postretirement benefit plans
Employer contribution expected for 2020	105
Expected benefit payments for 2020	280
Expected benefit payments for 2021	175
Expected benefit payments for 2022	180
Expected benefit payments for 2023	185
Expected benefit payments for 2024	190
Expected benefit payments from 2025-2029	1,055
Total expected benefit payments	2,065
Other postretirement benefits
Expected contributions and benefit payments for pension and other Postretirement benefit plans
Employer contribution expected for 2020	135
Expected benefit payments for 2020	290
Expected benefit payments for 2021	285
Expected benefit payments for 2022	280
Expected benefit payments for 2023	275
Expected benefit payments for 2024	270
Expected benefit payments from 2025-2029	1,340
Total expected benefit payments	2,740
Other postretirement benefits, Medicare Part D subsidy expected
Other postretirement benefits, Medicare Part D subsidy expected in 2020	9
Other postretirement benefits, Medicare Part D subsidy expected in 2021	9
Other postretirement benefits, Medicare Part D subsidy expected in 2022	9
Other postretirement benefits, Medicare Part D subsidy expected in 2023	8
Other postretirement benefits, Medicare Part D subsidy expected in 2024	8
Other postretirement benefits, Medicare Part D subsidy expected from 2025-2029	35
Total expected Medicare D subsidy receipts	$ 78

Postemployment benefit plans _6

Postemployment benefit plans (Details 6) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
U.S. pensions
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 15,994	$ 12,697	$ 13,416
U.S. pensions | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	2,734	2,161
U.S. pensions | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	2,068	1,280
U.S. pensions | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	6,634	6,484
U.S. pensions | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,414	1,332
U.S. pensions | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	2,220	590
U.S. pensions | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	63	384
U.S. pensions | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	96	79
U.S. pensions | Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	10	10
U.S. pensions | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	755	377
U.S. pensions | Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	4,876	3,452
U.S. pensions | Level 1 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	2,578	1,971
U.S. pensions | Level 1 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	2,068	1,279
U.S. pensions | Level 1 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 1 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 1 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 1 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 1 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 1 | Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 1 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	230	202
U.S. pensions | Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	10,380	8,765
U.S. pensions | Level 2 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 2 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 2 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	6,577	6,371
U.S. pensions | Level 2 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,414	1,332
U.S. pensions | Level 2 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	2,220	590
U.S. pensions | Level 2 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	63	384
U.S. pensions | Level 2 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	96	79
U.S. pensions | Level 2 | Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 2 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	10	9
U.S. pensions | Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	90	107
U.S. pensions | Level 3 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	23	35
U.S. pensions | Level 3 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	1
U.S. pensions | Level 3 | Fixed income securities
Defined Benefit Plan Disclosure
Fair value of plan assets	57	61	60
U.S. pensions | Level 3 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	57	61
U.S. pensions | Level 3 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 3 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 3 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 3 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Level 3 | Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	10	10	10
U.S. pensions | Level 3 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions | Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	648	373
U.S. pensions | Measured at NAV | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	133	155
U.S. pensions | Measured at NAV | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	52
U.S. pensions | Measured at NAV | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	515	166
Non-U.S. pensions
Defined Benefit Plan Disclosure
Fair value of plan assets	4,525	4,025	4,305
Non-U.S. pensions | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	58	43
Non-U.S. pensions | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	440	340
Non-U.S. pensions | Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	153	136
Non-U.S. pensions | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	253	206
Non-U.S. pensions | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	815	696
Non-U.S. pensions | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	65	74
Non-U.S. pensions | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,952	1,721
Non-U.S. pensions | Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	390	476
Non-U.S. pensions | Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	211	185
Non-U.S. pensions | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	188	148
Non-U.S. pensions | Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	498	391
Change to previously reported Non-U.S. Pension		(143)
Non-U.S. pensions | Level 1 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	58	43
Non-U.S. pensions | Level 1 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	346	259
Non-U.S. pensions | Level 1 | Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	26	23
Non-U.S. pensions | Level 1 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 1 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 1 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 1 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 1 | Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 1 | Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 1 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	68	66
Non-U.S. pensions | Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	3,636	3,270
Non-U.S. pensions | Level 2 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 2 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	29	28
Non-U.S. pensions | Level 2 | Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	16	23
Non-U.S. pensions | Level 2 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	253	206
Non-U.S. pensions | Level 2 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	808	690
Non-U.S. pensions | Level 2 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	65	74
Non-U.S. pensions | Level 2 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,952	1,721
Non-U.S. pensions | Level 2 | Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	182	261
Non-U.S. pensions | Level 2 | Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	211	185
Non-U.S. pensions | Level 2 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	120	82
Non-U.S. pensions | Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Level 3 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions | Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	391	364
Change to previously reported Non-U.S. Pension		143
Non-U.S. pensions | Measured at NAV | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets		0
Non-U.S. pensions | Measured at NAV | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	65	53
Non-U.S. pensions | Measured at NAV | Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	111	90
Non-U.S. pensions | Measured at NAV | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	7	6
Non-U.S. pensions | Measured at NAV | Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	208	215
Other postretirement benefits
Defined Benefit Plan Disclosure
Fair value of plan assets	255	328	$ 504
Other postretirement benefits | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	119	152
Other postretirement benefits | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	56	64
Other postretirement benefits | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	33	45
Other postretirement benefits | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	6	11
Other postretirement benefits | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	9	8
Other postretirement benefits | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	16	25
Other postretirement benefits | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	3	3
Other postretirement benefits | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	13	20
Other postretirement benefits | Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	177	218
Other postretirement benefits | Level 1 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	119	151
Other postretirement benefits | Level 1 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	56	64
Other postretirement benefits | Level 1 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 1 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 1 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 1 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 1 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 1 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	2	3
Other postretirement benefits | Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	68	94
Other postretirement benefits | Level 2 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	1
Other postretirement benefits | Level 2 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 2 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	33	45
Other postretirement benefits | Level 2 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	6	11
Other postretirement benefits | Level 2 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	9	8
Other postretirement benefits | Level 2 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	16	25
Other postretirement benefits | Level 2 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	3	3
Other postretirement benefits | Level 2 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	1	1
Other postretirement benefits | Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 3 | U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 3 | Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 3 | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 3 | Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 3 | U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 3 | U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 3 | Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Level 3 | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits | Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	10	16
Other postretirement benefits | Measured at NAV | U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets		0
Other postretirement benefits | Measured at NAV | Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 10	$ 16

Postemployment benefit plans _7

Postemployment benefit plans (Details 7) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
U.S. pensions
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 12,697	$ 13,416
Fair value of plan assets, end of year	$ 15,994	12,697
U.S. pensions | Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	70.00%
U.S. pensions | Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	30.00%
U.S. pensions | Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 10
Fair value of plan assets, end of year	10	10
Non-U.S. pensions
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	4,025	4,305
Fair value of plan assets, end of year	$ 4,525	4,025
Non-U.S. pensions | Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	79.00%
Non-U.S. pensions | Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	12.00%
Non-U.S. pensions | Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 185
Fair value of plan assets, end of year	$ 211	185
Information about plan asset allocations
Target allocation of plan assets (as a percent)	5.00%
Non-U.S. pensions | Other plan assets
Information about plan asset allocations
Target allocation of plan assets (as a percent)	4.00%
Other postretirement benefits
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 328	504
Fair value of plan assets, end of year	$ 255	328
Other postretirement benefits | Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	30.00%
Other postretirement benefits | Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	70.00%
Level 3 | U.S. pensions
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 107
Fair value of plan assets, end of year	90	107
Level 3 | U.S. pensions | Equities
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	36	20
Unrealized gains (losses)	(9)	(6)
Realized gains (losses)	7	0
Purchases, issuances and settlements	(10)	21
Transfers in and/or out of Level 3	(1)	1
Fair value of plan assets, end of year	23	36
Level 3 | U.S. pensions | Fixed income securities
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	61	60
Unrealized gains (losses)	0	(12)
Realized gains (losses)	0	0
Purchases, issuances and settlements	(4)	11
Transfers in and/or out of Level 3	0	2
Fair value of plan assets, end of year	57	61
Level 3 | U.S. pensions | Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	10	10
Unrealized gains (losses)	0	0
Realized gains (losses)	0	0
Purchases, issuances and settlements	0	0
Transfers in and/or out of Level 3	0	0
Fair value of plan assets, end of year	10	10
Level 3 | Non-U.S. pensions
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Level 3 | Non-U.S. pensions | Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Level 3 | Other postretirement benefits
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	$ 0	$ 0

Postemployment benefit plans _8

Postemployment benefit plans (Details 8) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined contribution plans
ESOP, number of allocated shares	14.9	17.2
Costs related to defined contribution plans	$ 497	$ 360	$ 448
U.S. Plans
Defined contribution plans
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans	100.00%
Employee compensation percentage contributed to defined contribution plan eligible for employer matching contributions	6.00%
New annual employer contribution, percentage of compensation, low end of range	3.00%
New annual employer contribution, percentage of compensation, high end of range	5.00%
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans for employees accruing benefits under a defined benefit plan	50.00%
Compensation percentage contributed to defined contribution plan eligible for employer matching contributions, for employees accruing benefits under defined benefit pension plan	6.00%
Costs related to defined contribution plans	$ 414	271	375
Non-U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	$ 83	$ 89	$ 73

Short-term borrowings (Details)

Short-term borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Short-term borrowings:
Short-term borrowings	$ 5,166	$ 5,723
Notes payable to banks
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	5.00%	5.30%
Commercial paper
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	1.30%	2.00%
Demand notes
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	1.70%	2.20%
Machinery, Energy & Transportation
Short-term borrowings:
Short-term borrowings	$ 5	$ 0
Machinery, Energy & Transportation | Notes payable to banks
Short-term borrowings:
Short-term borrowings	5	0
Financial Products
Short-term borrowings:
Short-term borrowings	5,161	5,723
Financial Products | Notes payable to banks
Short-term borrowings:
Short-term borrowings	605	526
Financial Products | Commercial paper
Short-term borrowings:
Short-term borrowings	4,168	4,759
Financial Products | Demand notes
Short-term borrowings:
Short-term borrowings	$ 388	$ 438

Long-term debt (Details)

Long-term debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2017	Jan. 09, 2020	Sep. 19, 2019	Dec. 31, 2018
Long-term Debt
Total Machinery, Energy & Transportation	$ 9,141				$ 8,005
Total Financial Products	17,140				16,995
Total long-term debt due after one year	26,281				25,000
Financing transaction in Japan		$ 360
Debentures-$500 million of 2.60% due 2029
Long-term Debt
Debt Instrument, Face Amount				$ 500
Debentures - $1000 million of 3.250% due 2049
Long-term Debt
Debt instrument, interest rate (as a percent)				3.25%
Debt Instrument, Face Amount				$ 1,000
Machinery, Energy & Transportation
Long-term Debt
Finance lease obligations and other	128				497
Total Machinery, Energy & Transportation	$ 9,141				8,005
Machinery, Energy & Transportation | Notes-$1,250 million of 3.900% due 2021
Long-term Debt
Effective Yield to Maturity (as a percent)	4.01%
Notes	$ 1,248				1,247
Debt instrument, interest rate (as a percent)	3.90%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 1,250
Machinery, Energy & Transportation | Notes-$759 million of 5.200% due 2041
Long-term Debt
Effective Yield to Maturity (as a percent)	5.27%
Notes	$ 752				751
Debt instrument, interest rate (as a percent)	5.20%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 759
Machinery, Energy & Transportation | Debentures-$120 million of 9.375% due 2021
Long-term Debt
Effective Yield to Maturity (as a percent)	9.41%
Debentures	$ 120				120
Debt instrument, interest rate (as a percent)	9.375%
Debt Instrument, Face Amount	$ 120
Machinery, Energy & Transportation | Debentures-$500 million of 2.600% due 2022
Long-term Debt
Effective Yield to Maturity (as a percent)	2.70%
Debentures	$ 499				498
Debt instrument, interest rate (as a percent)	2.60%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 500
Machinery, Energy & Transportation | Debentures-$82 million of 8.000% due 2023
Long-term Debt
Effective Yield to Maturity (as a percent)	8.06%
Debentures	$ 82				82
Debt instrument, interest rate (as a percent)	8.00%
Debt Instrument, Face Amount	$ 82
Machinery, Energy & Transportation | Debentures-$1,000 million of 3.400% due 2024
Long-term Debt
Effective Yield to Maturity (as a percent)	3.46%
Debentures	$ 998				997
Debt instrument, interest rate (as a percent)	3.40%
Debt Instrument, Face Amount	$ 1,000
Machinery, Energy & Transportation | Debentures-$193 million of 6.625% due 2028
Long-term Debt
Effective Yield to Maturity (as a percent)	6.68%
Debentures	$ 192				192
Debt instrument, interest rate (as a percent)	6.625%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 193
Machinery, Energy & Transportation | Debentures-$500 million of 2.60% due 2029
Long-term Debt
Effective Yield to Maturity (as a percent)	2.64%
Debentures	$ 497				0
Debt instrument, interest rate (as a percent)	2.60%			2.60%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-$242 million of 7.300% due 2031
Long-term Debt
Effective Yield to Maturity (as a percent)	7.38%
Debentures	$ 240				240
Debt instrument, interest rate (as a percent)	7.30%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 242
Machinery, Energy & Transportation | Debentures-$307 million of 5.300% due 2035
Long-term Debt
Effective Yield to Maturity (as a percent)	8.64%
Debentures	$ 220				218
Debt instrument, interest rate (as a percent)	5.30%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 307
Machinery, Energy & Transportation | Debentures-$460 million of 6.050% due 2036
Long-term Debt
Effective Yield to Maturity (as a percent)	6.12%
Debentures	$ 456				456
Debt instrument, interest rate (as a percent)	6.05%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 460
Machinery, Energy & Transportation | Debentures-$65 million of 8.250% due 2038
Long-term Debt
Effective Yield to Maturity (as a percent)	8.38%
Debentures	$ 64				64
Debt instrument, interest rate (as a percent)	8.25%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 65
Machinery, Energy & Transportation | Debentures-$160 million of 6.950% due 2042
Long-term Debt
Effective Yield to Maturity (as a percent)	7.02%
Debentures	$ 158				158
Debt instrument, interest rate (as a percent)	6.95%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 160
Machinery, Energy & Transportation | Debentures-$1,722 million of 3.803% due 2042
Long-term Debt
Effective Yield to Maturity (as a percent)	6.39%
Debentures	$ 1,277				1,257
Debt instrument, interest rate (as a percent)	3.803%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 1,722
Machinery, Energy & Transportation | Debentures-$500 million of 4.300% due 2044
Long-term Debt
Effective Yield to Maturity (as a percent)	4.39%
Debentures	$ 493				493
Debt instrument, interest rate (as a percent)	4.30%
Debt Instrument, Face Amount	$ 500
Machinery, Energy & Transportation | Debentures - $1000 million of 3.250% due 2049
Long-term Debt
Effective Yield to Maturity (as a percent)	3.37%
Debentures	$ 982				0
Debt instrument, interest rate (as a percent)	3.25%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation | Debentures-$500 million of 4.750% due 2064
Long-term Debt
Effective Yield to Maturity (as a percent)	4.81%
Debentures	$ 494				494
Debt instrument, interest rate (as a percent)	4.75%
Debt Instrument, Face Amount	$ 500
Machinery, Energy & Transportation | Debentures-$246 million of 7.375% due 2097
Long-term Debt
Effective Yield to Maturity (as a percent)	7.51%
Debentures	$ 241				241
Debt instrument, interest rate (as a percent)	7.375%
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Debt Instrument, Face Amount	$ 246
Financial Products Segment
Long-term Debt
Medium-term notes	16,719				16,592
Other	421				403
Total Financial Products	$ 17,140				$ 16,995
Medium-term Notes Weighted Average Interest Rate	2.70%
Medium-term Notes, Maximum Remaining Maturity	8 years
Medium-term notes, callable	$ 28.5
Subsequent Event | Financial Products Segment | Medium-term note mature in 2022
Long-term Debt
Debt Instrument, Face Amount			$ 750

Long-term debt (Details 2)

Long-term debt (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 09, 2020	Sep. 19, 2019
Long-term Debt
2020	$ 6,210
2021	9,135
2022	5,257
2023	2,260
2024	3,164
Interest paid on short-term and long-term borrowings	1,057	$ 1,088	$ 1,131
Payment for debt prepayment cost			$ 58
Machinery, Energy & Transportation
Long-term Debt
2020	16
2021	1,403
2022	513
2023	93
2024	$ 1,007
Financial Products Segment
Long-term Debt
Medium-term Notes Weighted Average Interest Rate	2.70%
Medium-term Notes, Maximum Remaining Maturity	8 years
2020	$ 6,194
2021	7,732
2022	4,744
2023	2,167
2024	2,157
Medium-term notes excluded from current maturity of long-term debt	$ 1,500
Unsecured Debentures Due in 2049 at 3.250 Percent
Long-term Debt
Debt Instrument, Face Amount					$ 1,000
Debt instrument, interest rate (as a percent)					3.25%
Unsecured Debentures Due in 2049 at 3.250 Percent | Machinery, Energy & Transportation
Long-term Debt
Debt instrument, interest rate (as a percent)	3.25%
Unsecured Debentures Due in 2029 at 2.60 Percent
Long-term Debt
Debt Instrument, Face Amount					$ 500
Unsecured Debentures Due in 2029 at 2.60 Percent | Machinery, Energy & Transportation
Long-term Debt
Debt instrument, interest rate (as a percent)	2.60%				2.60%
Unsecured Debentures Due in 2018 at 7.900 Percent | Machinery, Energy & Transportation
Long-term Debt
Debt instrument, interest rate (as a percent)		7.90%
Subsequent Event | Medium-term note mature in 2021 | Financial Products Segment
Long-term Debt
Debt Instrument, Face Amount				$ 750
Subsequent Event | Medium-term note mature in 2022 | Financial Products Segment
Long-term Debt
Debt Instrument, Face Amount				$ 750

Credit commitments (Details)

Credit commitments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)facilities
Credit lines available:
Credit lines available	$ 15,499
Less: Commercial paper outstanding	(4,168)
Less: Utilized credit	(1,247)
Available credit	(10,084)
Consolidated net worth	14,630
Minimum consolidated net worth required under credit facilities	9,000
Utilized credit	(1,247)
Machinery, Energy & Transportation
Credit lines available:
Credit lines available	2,945
Less: Commercial paper outstanding	0
Less: Utilized credit	0
Available credit	(2,945)
Utilized credit	0
Financial Products Segment
Credit lines available:
Credit lines available	12,554
Less: Commercial paper outstanding	(4,168)
Less: Utilized credit	(1,247)
Available credit	(7,139)
Utilized credit	(1,247)
Global credit facilities
Credit lines available:
Credit lines available	10,500
Less: Utilized credit	$ 0
Number of global credit facilities | facilities	3
Utilized credit	$ 0
Global credit facilities | Machinery, Energy & Transportation
Credit lines available:
Credit lines available	2,751
Global credit facilities | Financial Products Segment
Credit lines available:
Credit lines available	7,749
Other Consolidated Credit Lines
Credit lines available:
Credit lines available	4,999
Other Consolidated Credit Lines | Machinery, Energy & Transportation
Credit lines available:
Credit lines available	194
Other Consolidated Credit Lines | Financial Products Segment
Credit lines available:
Credit lines available	$ 4,805
Cat Financial
Credit lines available:
Interest coverage ratio, numerator	1.77
Interest coverage ratio, denominator	1
Minimum interest coverage ratio required under credit facilities, numerator	1.15
Minimum interest coverage ratio required under credit facilities, denominator	1
Six-month leverage ratio, numerator	7.65
Six month leverage ratio, denominator	1
Year-end leverage ratio, numerator	7.46
Year-end leverage ratio denominator	1
Maximum leverage ratio permissible under credit facility, numerator	10
Maximum leverage ratio permissible under credit facility, denominator	1
364-day credit facility | Global credit facilities
Credit lines available:
Credit lines available	$ 3,150
Duration of credit facility (in years or days)	364 days
Line of Credit Facility, Expiration Date	Sep. 30, 2020
364-day credit facility | Global credit facilities | Machinery, Energy & Transportation
Credit lines available:
Credit lines available	$ 820
Three-year facility | Global credit facilities
Credit lines available:
Credit lines available	$ 2,730
Duration of credit facility (in years or days)	3 years
Line of Credit Facility, Expiration Date	Sep. 30, 2022
Three-year facility | Global credit facilities | Machinery, Energy & Transportation
Credit lines available:
Credit lines available	$ 720
Five-year facility | Global credit facilities
Credit lines available:
Credit lines available	$ 4,620
Duration of credit facility (in years or days)	5 years
Line of Credit Facility, Expiration Date	Sep. 30, 2024
Five-year facility | Global credit facilities | Machinery, Energy & Transportation
Credit lines available:
Credit lines available	$ 1,210

Profit per share (Details)

Profit per share (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended								12 Months Ended
		Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017		Jul. 01, 2018
Earnings Per Share [Abstract]
Profit for the period (A) (in millions of dollars)		$ 1,098	$ 1,494	$ 1,620	$ 1,881	$ 1,048	$ 1,727	$ 1,707	$ 1,665	$ 6,093	[1]	$ 6,147	[1]	$ 754	[1]
Determination of shares (in millions)
Weighted-average number of common shares outstanding (B) (in shares)										561,600,000		591,400,000		591,800,000
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares)										5,900,000		8,000,000		7,500,000
Average common shares outstanding for fully diluted computation (C) (in shares)	[2]									567,500,000		599,400,000		599,300,000
Profit (loss) per share of common stock:
Assuming no dilution (A/B) (in dollars per share)		$ 2	$ 2.69	$ 2.85	$ 3.29	$ 1.80	$ 2.92	$ 2.86	$ 2.78	$ 10.85		$ 10.39		$ 1.27
Assuming full dilution (A/C) (in dollars per share)		$ 1.97	$ 2.66	$ 2.83	$ 3.25	$ 1.78	$ 2.88	$ 2.82	$ 2.74	$ 10.74	[2]	$ 10.26	[2]	$ 1.26	[2]
Shares outstanding as of December 31		550,100,000				575,500,000				550,100,000		575,500,000		597,600,000
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)										3,000,000		1,500,000		0
Common Stock Repurchase
Stock Repurchase Program, Authorized Amount																$ 10,000
Common shares repurchased (in shares)										30,586,507		27,673,675		0
Payments for repurchase of common stock										$ 4,047		$ 3,798		$ 0
[1]	Profit attributable to common shareholders.
[2]	Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method.

Accumulated other comprehensi_3

Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017		Jan. 01, 2019	Jan. 01, 2018	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss)
Other income (expense)									$ (57)		$ (67)		$ 153
Accumulated other comprehensive income (loss), start of period	$ (1,567)				$ (1,684)				(1,567)		(1,684)
Accumulated other comprehensive income (loss), end of period	(1,567)				(1,684)				(1,567)		(1,684)
Provision (benefit) for income taxes									(1,746)		(1,698)		(3,339)
Reclassifications net of tax	1,098	$ 1,494	$ 1,620	$ 1,881	1,048	$ 1,727	$ 1,707	$ 1,665	6,093	[1]	6,147	[1]	754	[1]
Total
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt recognition and measurement of financial assets and liabilities guidance																$ (11)
Accumulated other comprehensive income (loss), start of period	(1,567)				(1,684)				(1,567)		(1,684)		(1,192)		$ (1,576)	(1,203)	$ (2,039)
Other comprehensive income (loss), before reclassifications									90		(354)		838
Amounts reclassified from accumulated other comprehensive (income) loss									(81)		(127)		9
Other comprehensive income (loss)									9		(481)		847
Accumulated other comprehensive income (loss), end of period	(1,567)				(1,684)				(1,567)		(1,684)		(1,192)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt recognition and measurement of financial assets and liabilities guidance																0
Accumulated other comprehensive income (loss), start of period	(1,487)				(1,601)				(1,487)		(1,601)		(1,205)		(1,503)	(1,205)	(1,970)
Other comprehensive income (loss), before reclassifications									16		(397)		752
Amounts reclassified from accumulated other comprehensive (income) loss									0		1		13
Other comprehensive income (loss)									16		(396)		765
Accumulated other comprehensive income (loss), end of period	(1,487)				(1,601)				(1,487)		(1,601)		(1,205)
Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt recognition and measurement of financial assets and liabilities guidance																0
Accumulated other comprehensive income (loss), start of period	(3)				12				(3)		12		46		31	46	14
Other comprehensive income (loss), before reclassifications									(4)		(6)		48
Amounts reclassified from accumulated other comprehensive (income) loss									(30)		(28)		(16)
Other comprehensive income (loss)									(34)		(34)		32
Accumulated other comprehensive income (loss), end of period	(3)				12				(3)		12		46
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt recognition and measurement of financial assets and liabilities guidance																(11)
Accumulated other comprehensive income (loss), start of period	20				(15)				20		(15)		8		(15)	(3)	32
Other comprehensive income (loss), before reclassifications									35		(12)		41
Amounts reclassified from accumulated other comprehensive (income) loss									0		0		(65)
Other comprehensive income (loss)									35		(12)		(24)
Accumulated other comprehensive income (loss), end of period	20				(15)				20		(15)		8
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt recognition and measurement of financial assets and liabilities guidance																0
Accumulated other comprehensive income (loss), start of period	(97)				(80)				(97)		(80)		(41)		(89)	$ (41)	$ (115)
Other comprehensive income (loss), before reclassifications									43		61		(3)
Amounts reclassified from accumulated other comprehensive (income) loss									(51)		(100)		77
Other comprehensive income (loss)									(8)		(39)		74
Accumulated other comprehensive income (loss), end of period	$ (97)				$ (80)				(97)		(80)		(41)
Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss)
Reclassifications net of tax									81		127		(9)
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation
Accumulated Other Comprehensive Income (Loss)
Other income (expense)									0		(1)		(13)
Provision (benefit) for income taxes									0		0		0
Reclassifications net of tax									0		(1)		(13)
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss)
Provision (benefit) for income taxes									(10)		(8)		(9)
Reclassifications net of tax									30		28		16
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
Other income (expense)									0		0		100
Provision (benefit) for income taxes									0		0		(35)
Reclassifications net of tax									$ 0		$ 0		$ 65
Reclassification of certain tax effects from accumulated other comprehensive income | Total
Accumulated Other Comprehensive Income (Loss)
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets															108
Reclassification of certain tax effects from accumulated other comprehensive income | Foreign currency translation
Accumulated Other Comprehensive Income (Loss)
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets															98
Reclassification of certain tax effects from accumulated other comprehensive income | Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss)
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets															19
Reclassification of certain tax effects from accumulated other comprehensive income | Available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets															0
Reclassification of certain tax effects from accumulated other comprehensive income | Derivative financial instruments
Accumulated Other Comprehensive Income (Loss)
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets															$ (9)
[1]	Profit attributable to common shareholders.

Accumulated other comprehensi_4

Accumulated other comprehensive income (loss) (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)									$ (57)		$ (67)		$ 153
Tax (provision) benefit									(1,746)		(1,698)		(3,339)
Sales and revenues	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 14,342	$ 13,510	$ 14,011	$ 12,859	53,800		54,722		45,462
Cost of goods sold	9,117	8,569	9,941	9,003	9,987	9,022	9,422	8,566	36,630		36,997		31,260
Interest expense excluding Financial Products									(421)		(404)		(531)
Interest expense of Financial Products									754		722		646
Reclassification before tax									7,812		7,822		4,082
Reclassifications net of tax	$ 1,098	$ 1,494	$ 1,620	$ 1,881	$ 1,048	$ 1,727	$ 1,707	$ 1,665	6,093	[1]	6,147	[1]	754	[1]
Financial Products
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Sales and revenues									3,045		2,900
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications net of tax									81		127		(9)
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)									0		(1)		(13)
Tax (provision) benefit									0		0		0
Reclassifications net of tax									0		(1)		(13)
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Tax (provision) benefit									(10)		(8)		(9)
Amortization of prior service credit (cost)									40		36		25
Reclassifications net of tax									30		28		16
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Tax (provision) benefit									(15)		(31)		44
Reclassification before tax									66		131		(121)
Reclassifications net of tax									51		100		(77)
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts | Machinery, Energy & Transportation
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)									37		115		(121)
Sales and revenues									11		0		0
Cost of goods sold									(3)		0		0
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts | Financial Products
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Interest expense of Financial Products									33		19		6
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									(4)		(3)		(9)
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									(8)		0		3
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)									0		0		100
Tax (provision) benefit									0		0		(35)
Reclassifications net of tax									$ 0		$ 0		$ 65
[1]	Profit attributable to common shareholders.

Fair value disclosures (Details

Fair value disclosures (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Assets
Fair Value of debt securities	$ 1,365	$ 1,151
Recurring basis
Assets
Fair Value of debt securities	1,365	1,151
Fair value of equity securities	346	425
Derivative Asset, at Fair Value, Net	45
Total Assets	1,756	1,576
Liabilities
Derivative Assets (Liabilities), at Fair Value, Net		19
Total Liabilities		19
Government debt - U.S. treasury bonds
Assets
Fair Value of debt securities	9	9
Government debt - U.S. treasury bonds | Recurring basis
Assets
Fair Value of debt securities	9	9
Other U.S. and non-U.S. government bonds
Assets
Fair Value of debt securities	54	42
Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Fair Value of debt securities	54	42
Corporate bonds
Assets
Fair Value of debt securities	856	720
Corporate bonds | Recurring basis
Assets
Fair Value of debt securities	856	720
Corporate bonds - Asset-backed securities
Assets
Fair Value of debt securities	62	63
Corporate bonds - Asset-backed securities | Recurring basis
Assets
Fair Value of debt securities	62	63
U.S. governmental agency | Recurring basis
Assets
Fair Value of debt securities	331	297
Mortgage-backed securities - Residential
Assets
Fair Value of debt securities	6	7
Mortgage-backed securities - Residential | Recurring basis
Assets
Fair Value of debt securities	6	7
Mortgage-backed securities - Commercial
Assets
Fair Value of debt securities	47	13
Mortgage-backed securities - Commercial | Recurring basis
Assets
Fair Value of debt securities	47	13
Large capitalization value | Recurring basis
Assets
Fair value of equity securities	187	260
REIT | Recurring basis
Assets
Fair value of equity securities	126	119
Smaller company growth | Recurring basis
Assets
Fair value of equity securities	33	46
Level 1 | Recurring basis
Assets
Fair Value of debt securities	9	9
Fair value of equity securities	216	306
Derivative Asset, at Fair Value, Net	0
Total Assets	225	315
Liabilities
Derivative Assets (Liabilities), at Fair Value, Net		0
Total Liabilities		0
Level 1 | Government debt - U.S. treasury bonds | Recurring basis
Assets
Fair Value of debt securities	9	9
Level 1 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 | Corporate bonds | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 | Corporate bonds - Asset-backed securities | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 | U.S. governmental agency | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 | Mortgage-backed securities - Residential | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 | Mortgage-backed securities - Commercial | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 | Large capitalization value | Recurring basis
Assets
Fair value of equity securities	187	260
Level 1 | REIT | Recurring basis
Assets
Fair value of equity securities	0	0
Level 1 | Smaller company growth | Recurring basis
Assets
Fair value of equity securities	29	46
Level 2 | Recurring basis
Assets
Fair Value of debt securities	1,356	1,142
Fair value of equity securities	0	0
Derivative Asset, at Fair Value, Net	45
Total Assets	1,401	1,142
Liabilities
Derivative Assets (Liabilities), at Fair Value, Net		19
Total Liabilities		19
Level 2 | Government debt - U.S. treasury bonds | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Fair Value of debt securities	54	42
Level 2 | Corporate bonds | Recurring basis
Assets
Fair Value of debt securities	856	720
Level 2 | Corporate bonds - Asset-backed securities | Recurring basis
Assets
Fair Value of debt securities	62	63
Level 2 | U.S. governmental agency | Recurring basis
Assets
Fair Value of debt securities	331	297
Level 2 | Mortgage-backed securities - Residential | Recurring basis
Assets
Fair Value of debt securities	6	7
Level 2 | Mortgage-backed securities - Commercial | Recurring basis
Assets
Fair Value of debt securities	47	13
Level 2 | Large capitalization value | Recurring basis
Assets
Fair value of equity securities	0	0
Level 2 | REIT | Recurring basis
Assets
Fair value of equity securities	0	0
Level 2 | Smaller company growth | Recurring basis
Assets
Fair value of equity securities	0	0
Level 3 | Recurring basis
Assets
Fair Value of debt securities	0	0
Fair value of equity securities	4	0
Derivative Asset, at Fair Value, Net	0
Total Assets	4	0
Liabilities
Derivative Assets (Liabilities), at Fair Value, Net		0
Total Liabilities		0
Level 3 | Government debt - U.S. treasury bonds | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 | Corporate bonds | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 | Corporate bonds - Asset-backed securities | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 | U.S. governmental agency | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 | Mortgage-backed securities - Residential | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 | Mortgage-backed securities - Commercial | Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 | Large capitalization value | Recurring basis
Assets
Fair value of equity securities	0	0
Level 3 | REIT | Recurring basis
Assets
Fair value of equity securities	0	0
Level 3 | Smaller company growth | Recurring basis
Assets
Fair value of equity securities	4	0
Measured at NAV | Recurring basis
Assets
Fair value of equity securities	126	119
Total Assets	126	119
Measured at NAV | REIT | Recurring basis
Assets
Fair value of equity securities	$ 126	$ 119

Fair value disclosures (Detai_2

Fair value disclosures (Details 2) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Level 3 | Financial Products | Nonrecurring basis
Fair value of impaired loans
Fair value of impaired loans	$ 343	$ 469

Fair value disclosures (Detai_3

Fair value disclosures (Details 3) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and short-term investments	$ 8,284	$ 7,857
Liabilities
Short-term borrowings	5,166	5,723
Machinery, Energy & Transportation
Liabilities
Short-term borrowings	5	0
Financial Products
Liabilities
Short-term borrowings	5,161	5,723
Carrying Amount
Assets
Cash and short-term investments	8,284	7,857
Restricted cash and short-term investments	8	33
Investments in debt and equity securities	1,711	1,576
Finance receivables-net (excluding finance leases)	14,473	14,714
Wholesale inventory receivables-net (excluding finance leases)	1,105	1,050
Foreign currency contracts-net	62	47
Commodity contracts-net	3	0
Liabilities
Short-term borrowings	5,166	5,723
Interest rate swap liabilities	20	36
Commodity contracts-net	0	30
Guarantees	5	8
Carrying Amount | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	9,157	8,015
Carrying Amount | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	23,334	22,815
Excluded from measurement at fair value
Liabilities
Excluded items: Finance leases and failed sale leasebacks, Carrying Value	7,800	7,463
Level 1 | Fair Value
Assets
Cash and short-term investments	8,284	7,857
Restricted cash and short-term investments	8	33
Liabilities
Short-term borrowings	5,166	5,723
Level 1, 2 & 3 | Fair Value
Assets
Investments in debt and equity securities	1,711	1,576
Level 2 | Fair Value
Assets
Foreign currency contracts-net	62	47
Commodity contracts-net	3	0
Liabilities
Interest rate swap liabilities	20	36
Commodity contracts-net	0	30
Level 2 | Fair Value | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	11,216	9,046
Level 2 | Fair Value | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	23,655	22,684
Level 3 | Fair Value
Assets
Finance receivables-net (excluding finance leases)	14,613	14,798
Wholesale inventory receivables-net (excluding finance leases)	1,076	1,025
Liabilities
Guarantees	$ 5	$ 8

Concentration of credit risk (D

Concentration of credit risk (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Risks and Uncertainties [Abstract]
Derivative contracts, maximum exposure to credit loss	$ 116	$ 131

Leases Lessee arrangements - Le

Leases Lessee arrangements - Lease costs (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Lease, Cost
Operating Lease, Cost	$ 232
Short-term Lease, Cost	$ 57

Leases Lessee arrangements - Su

Leases Lessee arrangements - Supplemental balance sheet information related to leases (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019
Operating leases in supplement balance sheet
Operating lease weighted average remaining lease term	7 years	7 years
Operating lease weighted average discount rate	2.00%	2.00%
Other Assets
Operating leases in supplement balance sheet
Other assets	$ 624	$ 713
Other Current Liabilities
Operating leases in supplement balance sheet
Other current liabilities	173	209
Other Liabilities
Operating leases in supplement balance sheet
Other liabilities	$ 461	$ 511

Leases Lessee arrangements - Ma

Leases Lessee arrangements - Maturity of lease liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity
2020	$ 185
2021	139
2022	86
2023	64
2024	46
Thereafter	175
Total lease payments	695
Less: Imputed interest	(61)
Total	634
2019	205	$ 205
2020	154	154
2021	111	111
2022	67	67
2023	50	50
Thereafter	185	185
Total	$ 772	$ 772

Leases Lessee arrangements - _2

Leases Lessee arrangements - Supplemental cash flow information related to leases (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Supplemental cash flow info related to leases
Operating cashflows from operating leases	$ 224
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 122

Leases Lessor arrangements- Equ

Leases Lessor arrangements- Equipment leased to others (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Equipment on operating leases
Equipment leased to others - at original cost	$ 29,217		$ 29,781
Less: Accumulated depreciation	(16,313)		(16,207)
Equipment leased to others - net	12,904	$ 13,548	13,574
Equipment on operating leases
Equipment on operating leases
Equipment leased to others - at original cost	6,208		6,015
Less: Accumulated depreciation	(1,960)		(1,744)
Equipment leased to others - net	$ 4,248		$ 4,271

Leases Leases Lessor arrangemen

Leases Leases Lessor arrangements - Operating lease payment maturity (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Operating Leases, Future Minimum Payments Receivable
2020	$ 861
2021	558
2022	299
2023	149
2024	74
Thereafter	70
Total	$ 2,011
2019		$ 896
2020		574
2021		314
2022		158
2023		71
Thereafter		69
Total		$ 2,082

Leases Leases Lessor arrangem_2

Leases Leases Lessor arrangements - Revenues from finance and operating leases (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Finance lease revenue	$ 521
Operating lease revenue	1,248
Total	$ 1,769

Guarantees and product warran_3

Guarantees and product warranty (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Related liability	$ 5	$ 8
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,609	1,978
Special-Purpose Company's assets in Consolidated Statement of Financial Position	1,453	1,149
Special-Purpose Company's liabilities in Consolidated Statement of Financial Position	1,452	1,148
Unused commitments and lines of credit for dealers	11,154
Unused commitments and lines of credit for customers	693
Caterpillar dealer performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,150	1,244
Supplier consortium performance guarantee
Guarantor Obligations
Guarantees, maximum potential amount of future payments	238	527
Other guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 221	$ 207

Guarantees and product warran_4

Guarantees and product warranty (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Movement in Standard Product Warranty Accrual
Warranty liability, beginning balance	$ 1,391	$ 1,419
Reduction in liability (payments)	(903)	(783)
Increase in liability (new warranties)	1,053	755
Warranty liability, ending balance	$ 1,541	$ 1,391

Environmental and legal matte_2

Environmental and legal matters Environmental and legal matters (Details)	Jan. 27, 2020USD ($)	Jul. 08, 2019	Mar. 03, 2017	Mar. 20, 2014
IRS investigation
Loss Contingencies
Number of facilities served search and seizure warrants			3
Individuals | CADE Investigation
Loss Contingencies
Number of Defendants				100
Current employee of MEG | CADE Investigation
Loss Contingencies
Number of Defendants				1
Defendant found liable, current employee of MEG | CADE Investigation
Loss Contingencies
Number of Defendants		1
Former employee of MEG | CADE Investigation
Loss Contingencies
Number of Defendants				2
Defendant found liable, former employee of MEG | CADE Investigation
Loss Contingencies
Number of Defendants		2
Companies | CADE Investigation
Loss Contingencies
Number of Defendants				18
Subsidiaries of Caterpillar Inc | CADE Investigation
Loss Contingencies
Number of Defendants				2
Subsequent Event | IBAMA allegations
Loss Contingencies
Proposed fine	$ 370,000

Reportable Segments (Details)

Reportable Segments (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)group_presidentssegments	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Segment Reporting Information
Number of group presidents | group_presidents									4
Number of operating segments | segments									5
Useful life to amortize goodwill for segment assets									20 years
Reportable Segments
External sales and revenues	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 14,342	$ 13,510	$ 14,011	$ 12,859	$ 53,800	$ 54,722	$ 45,462
Depreciation and amortization									2,577	2,766	2,877
Consolidated profit before taxes									7,812	7,822	4,082
Segment assets	78,453				78,509				78,453	78,509
Capital expenditures									$ 2,669	2,916	2,336
All Other operating segments
Segment Reporting Information
Number of group presidents | group_presidents									1
Number of smaller operating segments led by Group President | segments									1
Reportable Segments
External sales and revenues											178
Depreciation and amortization									$ 210	225	220
Consolidated profit before taxes									4	23	(44)
Segment assets	1,337				1,279				1,337	1,279
Capital expenditures									131	170	134
Reportable Segments Including Intersegment Eliminations
Reportable Segments
External sales and revenues									$ 58,456	59,571	49,576
Reportable segments
Segment Reporting Information
Number of operating segments led by Group Presidents | segments									3
Number of operating segments led by Group president responsible for corporate services | segments									1
Number of reportable segments | segments									4
Reportable Segments
External sales and revenues									$ 54,288	55,115	45,694
Depreciation and amortization									2,213	2,303	2,387
Consolidated profit before taxes									10,302	10,220	7,601
Segment assets	55,858				55,732				55,858	55,732	53,698
Capital expenditures									2,516	2,755	2,311
Intersegment Eliminations
Reportable Segments
External sales and revenues									4,168	4,456	3,882
Machinery, Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Reportable Segments
External sales and revenues									55,022	56,292	46,483
Machinery, Energy & Transportation | Reportable segments
Reportable Segments
External sales and revenues									50,854	51,836	42,601
Depreciation and amortization									1,384	1,469	1,567
Consolidated profit before taxes									9,470	9,715	6,809
Segment assets	20,045				19,730				20,045	19,730	18,805
Capital expenditures									982	1,196	938
Machinery, Energy & Transportation | Intersegment Eliminations
Reportable Segments
External sales and revenues									4,168	4,456	3,882
Construction Industries | Reportable Segments Including Intersegment Eliminations
Reportable Segments
External sales and revenues									22,649	23,237	19,240
Construction Industries | Reportable segments
Reportable Segments
External sales and revenues									22,556	23,116	19,133
Depreciation and amortization									331	367	400
Consolidated profit before taxes									3,931	4,174	3,255
Segment assets	5,219				4,902				5,219	4,902	4,838
Capital expenditures									201	266	228
Construction Industries | Intersegment Eliminations
Reportable Segments
External sales and revenues									93	121	107
Resource Industries | Reportable Segments Including Intersegment Eliminations
Reportable Segments
External sales and revenues									10,276	10,270	7,861
Resource Industries | Reportable segments
Reportable Segments
External sales and revenues									9,813	9,888	7,504
Depreciation and amortization									425	462	514
Consolidated profit before taxes									1,629	1,603	698
Segment assets	6,214				6,442				6,214	6,442	6,403
Capital expenditures									168	188	183
Resource Industries | Intersegment Eliminations
Reportable Segments
External sales and revenues									463	382	357
Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Reportable Segments
External sales and revenues									22,097	22,785	19,382
Energy & Transportation | Reportable segments
Reportable Segments
External sales and revenues									18,485	18,832	15,964
Depreciation and amortization									628	640	653
Consolidated profit before taxes									3,910	3,938	2,856
Segment assets	8,612				8,386				8,612	8,386	7,564
Capital expenditures									613	742	527
Energy & Transportation | Intersegment Eliminations
Reportable Segments
External sales and revenues									3,612	3,953	3,418
Financial Products Segment
Reportable Segments
Revenue from Related Parties									524	470	384
Financial Products Segment | Reportable Segments Including Intersegment Eliminations
Reportable Segments
External sales and revenues									3,434	3,279	3,093
Financial Products Segment | Reportable segments
Reportable Segments
External sales and revenues									3,434	3,279	3,093
Depreciation and amortization									829	834	820
Consolidated profit before taxes									832	505	792
Segment assets	$ 35,813				$ 36,002				35,813	36,002	34,893
Capital expenditures									1,534	1,559	1,373
Financial Products Segment | Intersegment Eliminations
Reportable Segments
External sales and revenues									$ 0	$ 0	$ 0

Segment information Sales and r

Segment information Sales and revenues by geographic region (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Sales and revenue by geographic region
Sales and revenues	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 14,342	$ 13,510	$ 14,011	$ 12,859	$ 53,800	$ 54,722	$ 45,462
Reportable segments
Sales and revenue by geographic region
Sales and revenues									54,288	55,115	45,694
Other
Sales and revenue by geographic region
Sales and revenues											(410)
All Other operating segments
Sales and revenue by geographic region
Sales and revenues											178
Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									4,168	4,456	3,882
Construction Industries | Reportable segments
Sales and revenue by geographic region
Revenues									22,556	23,116
Sales and revenues									22,556	23,116	19,133
Construction Industries | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									93	121	107
Resource Industries | Reportable segments
Sales and revenue by geographic region
Revenues									9,813	9,888
Sales and revenues									9,813	9,888	7,504
Resource Industries | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									463	382	357
Energy & Transportation | Reportable segments
Sales and revenue by geographic region
Revenues									18,485	18,832
Sales and revenues									18,485	18,832	15,964
Energy & Transportation | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									3,612	3,953	3,418
All Other | All Other operating segments
Sales and revenue by geographic region
Revenues									127	154
Machinery, Energy & Transportation
Sales and revenue by geographic region
Revenues									50,755	51,822
Machinery, Energy & Transportation | Reportable segments
Sales and revenue by geographic region
Sales and revenues									50,854	51,836	42,601
Machinery, Energy & Transportation | Intersegment Eliminations
Sales and revenue by geographic region
Revenues									(226)	(168)
Sales and revenues									4,168	4,456	3,882
Financial Products Segment | Reportable segments
Sales and revenue by geographic region
Sales and revenues									3,434	3,279	3,093
Financial Products Segment | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									0	0	0
Financial Products
Sales and revenue by geographic region
Sales and revenues									3,045	2,900
Financial Products | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(389)	(379)
Business | Energy & Transportation | Reportable segments
Sales and revenue by geographic region
Sales and revenues									18,485	18,832
Business | Machinery, Energy & Transportation
Sales and revenue by geographic region
Sales and revenues											42,676
Business | Machinery, Energy & Transportation | Reportable segments
Sales and revenue by geographic region
Sales and revenues											42,601
Business | Machinery, Energy & Transportation | Other
Sales and revenue by geographic region
Sales and revenues											(103)
Business | Machinery, Energy & Transportation | All Other operating segments
Sales and revenue by geographic region
Sales and revenues											178
Business | Financial Products Segment
Sales and revenue by geographic region
Sales and revenues											3,167
Business | Financial Products Segment | Reportable segments
Sales and revenue by geographic region
Sales and revenues											3,093
Business | Financial Products Segment | Other
Sales and revenue by geographic region
Sales and revenues											74
Business | Financial Products Segment | All Other operating segments
Sales and revenue by geographic region
Sales and revenues											0
Consolidating Adjustments
Sales and revenue by geographic region
Sales and revenues											(381)
Consolidating Adjustments | Reportable segments
Sales and revenue by geographic region
Sales and revenues											0
Consolidating Adjustments | Other
Sales and revenue by geographic region
Sales and revenues											(381)
Consolidating Adjustments | All Other operating segments
Sales and revenue by geographic region
Sales and revenues											$ 0
North America
Sales and revenue by geographic region
Sales and revenues									25,785	25,623
North America | Machinery, Energy & Transportation | Intersegment Eliminations
Sales and revenue by geographic region
Revenues									(192)	(155)
North America | Financial Products | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(234)	(234)
North America | Business | Construction Industries | Reportable segments
Sales and revenue by geographic region
Revenues									11,455	10,754
North America | Business | Resource Industries | Reportable segments
Sales and revenue by geographic region
Revenues									3,632	3,357
North America | Business | Energy & Transportation | Reportable segments
Sales and revenue by geographic region
Revenues									8,864	9,685
North America | Business | All Other | All Other operating segments
Sales and revenue by geographic region
Revenues									25	63
North America | Business | Machinery, Energy & Transportation
Sales and revenue by geographic region
Revenues									23,784	23,704
North America | Business | Financial Products Segment | Reportable segments
Sales and revenue by geographic region
Sales and revenues									2,235	2,153
North America | Business | Financial Products
Sales and revenue by geographic region
Sales and revenues									2,001	1,919
Latin America
Sales and revenue by geographic region
Sales and revenues									4,710	4,695
Latin America | Machinery, Energy & Transportation | Intersegment Eliminations
Sales and revenue by geographic region
Revenues									0	0
Latin America | Financial Products | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(51)	(46)
Latin America | Business | Construction Industries | Reportable segments
Sales and revenue by geographic region
Revenues									1,533	1,479
Latin America | Business | Resource Industries | Reportable segments
Sales and revenue by geographic region
Revenues									1,533	1,647
Latin America | Business | Energy & Transportation | Reportable segments
Sales and revenue by geographic region
Revenues									1,389	1,331
Latin America | Business | All Other | All Other operating segments
Sales and revenue by geographic region
Revenues									7	3
Latin America | Business | Machinery, Energy & Transportation
Sales and revenue by geographic region
Revenues									4,462	4,460
Latin America | Business | Financial Products Segment | Reportable segments
Sales and revenue by geographic region
Sales and revenues									299	281
Latin America | Business | Financial Products
Sales and revenue by geographic region
Sales and revenues									248	235
EAME
Sales and revenue by geographic region
Sales and revenues									11,223	11,929
EAME | Machinery, Energy & Transportation | Intersegment Eliminations
Sales and revenue by geographic region
Revenues									(20)	(11)
EAME | Financial Products | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(35)	(26)
EAME | Business | Construction Industries | Reportable segments
Sales and revenue by geographic region
Revenues									4,012	4,410
EAME | Business | Resource Industries | Reportable segments
Sales and revenue by geographic region
Revenues									1,836	2,217
EAME | Business | Energy & Transportation | Reportable segments
Sales and revenue by geographic region
Revenues									4,994	4,934
EAME | Business | All Other | All Other operating segments
Sales and revenue by geographic region
Revenues									28	18
EAME | Business | Machinery, Energy & Transportation
Sales and revenue by geographic region
Revenues									10,850	11,568
EAME | Business | Financial Products Segment | Reportable segments
Sales and revenue by geographic region
Sales and revenues									408	387
EAME | Business | Financial Products
Sales and revenue by geographic region
Sales and revenues									373	361
Asia Pacific
Sales and revenue by geographic region
Sales and revenues									12,082	12,475
Asia Pacific | Machinery, Energy & Transportation | Intersegment Eliminations
Sales and revenue by geographic region
Revenues									(14)	(2)
Asia Pacific | Financial Products | Intersegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(69)	(73)
Asia Pacific | Business | Construction Industries | Reportable segments
Sales and revenue by geographic region
Revenues									5,556	6,473
Asia Pacific | Business | Resource Industries | Reportable segments
Sales and revenue by geographic region
Revenues									2,812	2,667
Asia Pacific | Business | Energy & Transportation | Reportable segments
Sales and revenue by geographic region
Revenues									3,238	2,882
Asia Pacific | Business | All Other | All Other operating segments
Sales and revenue by geographic region
Revenues									67	70
Asia Pacific | Business | Machinery, Energy & Transportation
Sales and revenue by geographic region
Revenues									11,659	12,090
Asia Pacific | Business | Financial Products Segment | Reportable segments
Sales and revenue by geographic region
Sales and revenues									492	458
Asia Pacific | Business | Financial Products
Sales and revenue by geographic region
Sales and revenues									423	385
Oil and Gas [Member] | Energy & Transportation
Sales and revenue by geographic region
Sales and revenues									5,205	5,763
Power generation [Member] | Energy & Transportation
Sales and revenue by geographic region
Sales and revenues									4,474	4,334
Industrial [Member] | Energy & Transportation
Sales and revenue by geographic region
Sales and revenues									3,749	3,640
Transportation [Member] | Energy & Transportation
Sales and revenue by geographic region
Sales and revenues									$ 5,057	$ 5,095

Reconciliation of sales and rev

Reconciliation of sales and revenues 2017 (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of Sales and revenues
Sales and revenues	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 14,342	$ 13,510	$ 14,011	$ 12,859	$ 53,800	$ 54,722	$ 45,462
Reportable segments
Reconciliation of Sales and revenues
Sales and revenues									54,288	55,115	45,694
All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues											178
Other
Reconciliation of Sales and revenues
Sales and revenues											(410)
Consolidating Adjustments
Reconciliation of Sales and revenues
Sales and revenues											(381)
Consolidating Adjustments | Reportable segments
Reconciliation of Sales and revenues
Sales and revenues											0
Consolidating Adjustments | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues											0
Consolidating Adjustments | Other
Reconciliation of Sales and revenues
Sales and revenues											(381)
Machinery, Energy & Transportation | Reportable segments
Reconciliation of Sales and revenues
Sales and revenues									50,854	51,836	42,601
Machinery, Energy & Transportation | Business
Reconciliation of Sales and revenues
Sales and revenues											42,676
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of Sales and revenues
Sales and revenues											42,601
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Sales and revenues
Sales and revenues											178
Machinery, Energy & Transportation | Business | Other
Reconciliation of Sales and revenues
Sales and revenues											$ (103)
Financial Products
Reconciliation of Sales and revenues
Sales and revenues									$ 3,045	$ 2,900

Reconciliation of consolidated

Reconciliation of consolidated profit before taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 7,812	$ 7,822	$ 4,082
Reportable segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	10,302	10,220	7,601
All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	4	23	(44)
Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(6)	2	22
Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(607)	(610)	(633)
Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(93)	(257)	(151)
Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(207)	(386)	(1,256)
Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(19)	51	(77)
Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(401)	(124)	(141)
Stock-Based Compensation Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(205)	(198)	(206)
Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(248)	(257)	(524)
Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(175)	(219)	(218)
Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(481)	(362)	(181)
Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(52)	(61)	(110)
Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	10,306	10,243	7,557
Machinery, Energy & Transportation | Reportable segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	9,470	9,715	6,809
Machinery, Energy & Transportation | Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	6,981	7,316	3,314
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	9,470	9,715	6,809
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	4	23	(44)
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(6)	2	22
Machinery, Energy & Transportation | Business | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(602)	(610)	(633)
Machinery, Energy & Transportation | Business | Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(93)	(257)	(151)
Machinery, Energy & Transportation | Business | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(163)	(370)	(1,253)
Machinery, Energy & Transportation | Business | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(19)	51	(77)
Machinery, Energy & Transportation | Business | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(401)	(124)	(141)
Machinery, Energy & Transportation | Business | Stock-Based Compensation Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(198)	(190)	(198)
Machinery, Energy & Transportation | Business | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(248)	(257)	(524)
Machinery, Energy & Transportation | Business | Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(175)	(219)	(218)
Machinery, Energy & Transportation | Business | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(481)	(362)	(181)
Machinery, Energy & Transportation | Business | Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(107)	(86)	(97)
Financial Products | Business
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	831	506	768
Financial Products | Business | Reportable segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	832	505	792
Financial Products | Business | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(5)	0	0
Financial Products | Business | Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(44)	(16)	(3)
Financial Products | Business | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Stock-Based Compensation Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(7)	(8)	(8)
Financial Products | Business | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	0	0	0
Financial Products | Business | Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 55	$ 25	$ (13)

Reconciliation of Restructuring

Reconciliation of Restructuring costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information
Consolidated profit before taxes	$ 7,812	$ 7,822	$ 4,082
Restructuring costs	(236)	(386)	(1,256)
Reportable segments
Segment Reporting Information
Consolidated profit before taxes	10,302	10,220	7,601
Reportable segments | Construction Industries
Segment Reporting Information
Consolidated profit before taxes	3,931	4,174	3,255
Reportable segments | Resource Industries
Segment Reporting Information
Consolidated profit before taxes	1,629	1,603	698
Reportable segments | Energy & Transportation
Segment Reporting Information
Consolidated profit before taxes	3,910	3,938	2,856
Reportable segments | Financial Products Segment
Segment Reporting Information
Consolidated profit before taxes	832	505	792
All Other operating segments
Segment Reporting Information
Consolidated profit before taxes	4	23	(44)
Business
Segment Reporting Information
Consolidated profit before taxes	10,306	10,243	7,557
Restructuring costs	(204)	(375)	(1,152)
Consolidated profit before taxes with restructuring costs	10,102	9,868	6,405
Business | Reportable segments | Construction Industries
Segment Reporting Information
Consolidated profit before taxes	3,931	4,174	3,255
Restructuring costs	(55)	(58)	(719)
Consolidated profit before taxes with restructuring costs	3,876	4,116	2,536
Business | Reportable segments | Resource Industries
Segment Reporting Information
Consolidated profit before taxes	1,629	1,603	698
Restructuring costs	(56)	(191)	(276)
Consolidated profit before taxes with restructuring costs	1,573	1,412	422
Business | Reportable segments | Energy & Transportation
Segment Reporting Information
Consolidated profit before taxes	3,910	3,938	2,856
Restructuring costs	(82)	(84)	(115)
Consolidated profit before taxes with restructuring costs	3,828	3,854	2,741
Business | Reportable segments | Financial Products Segment
Segment Reporting Information
Consolidated profit before taxes	832	505	792
Restructuring costs	0	(2)	(3)
Consolidated profit before taxes with restructuring costs	832	503	789
Business | All Other operating segments | All Other
Segment Reporting Information
Consolidated profit before taxes	4	23	(44)
Restructuring costs	(11)	(40)	(39)
Consolidated profit before taxes with restructuring costs	$ (7)	$ (17)	$ (83)

Reconciliation of assets (Detai

Reconciliation of assets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of assets
Total assets	$ 78,453	$ 78,509
Reportable segments
Reconciliation of assets
Total assets	55,858	55,732	$ 53,698
All Other operating segments
Reconciliation of assets
Total assets	1,337	1,279
Cash and Short Term Investments
Reconciliation of assets
Total assets	7,299	6,968
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	1,294	1,323
Goodwill and Intangible Assets
Reconciliation of assets
Total assets	4,435	4,279
Property Plant and Equipment-Net and Other Assets
Reconciliation of assets
Total assets	2,529	1,802
Liabilities Included in Segment Assets
Reconciliation of assets
Total assets	8,541	9,766
Inventory Methodology Differences
Reconciliation of assets
Total assets	(2,426)	(2,503)
Other
Reconciliation of assets
Total assets	(414)	(137)
Consolidating Adjustments
Reconciliation of assets
Total assets	(5,931)	(6,034)
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	(758)	(1,633)
Consolidating Adjustments | Investment in Financial Products
Reconciliation of assets
Total assets	(4,260)	(3,672)
Consolidating Adjustments | Deferred income taxes
Reconciliation of assets
Total assets	(708)	(692)
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 | Liabilities Included in Segment Assets
Reconciliation of assets
Total assets	0	0
Consolidating Adjustments | Inventory Methodology Differences
Reconciliation of assets
Total assets	0	0
Consolidating Adjustments | Other
Reconciliation of assets
Total assets	(205)	(37)
Machinery, Energy & Transportation | Reportable segments
Reconciliation of assets
Total assets	20,045	19,730	$ 18,805
Machinery, Energy & Transportation | Business
Reconciliation of assets
Total assets	48,437	48,475
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of assets
Total assets	20,045	19,730
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of assets
Total assets	1,337	1,279
Machinery, Energy & Transportation | Business | Cash and Short Term Investments
Reconciliation of assets
Total assets	7,299	6,968
Machinery, Energy & Transportation | Business | Intercompany Receivables
Reconciliation of assets
Total assets	758	1,633
Machinery, Energy & Transportation | Business | Investment in Financial Products
Reconciliation of assets
Total assets	4,260	3,672
Machinery, Energy & Transportation | Business | Deferred income taxes
Reconciliation of assets
Total assets	2,002	2,015
Machinery, Energy & Transportation | Business | Goodwill and Intangible Assets
Reconciliation of assets
Total assets	4,435	4,279
Machinery, Energy & Transportation | Business | Property Plant and Equipment-Net and Other Assets
Reconciliation of assets
Total assets	2,529	1,802
Machinery, Energy & Transportation | Business | Liabilities Included in Segment Assets
Reconciliation of assets
Total assets	8,541	9,766
Machinery, Energy & Transportation | Business | Inventory Methodology Differences
Reconciliation of assets
Total assets	(2,426)	(2,503)
Machinery, Energy & Transportation | Business | Other
Reconciliation of assets
Total assets	(343)	(166)
Financial Products | Business
Reconciliation of assets
Total assets	35,947	36,068
Financial Products | Business | Reportable segments
Reconciliation of assets
Total assets	35,813	36,002
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 | Liabilities Included in Segment Assets
Reconciliation of assets
Total assets	0	0
Financial Products | Business | Inventory Methodology Differences
Reconciliation of assets
Total assets	0	0
Financial Products | Business | Other
Reconciliation of assets
Total assets	$ 134	$ 66

Reconciliation of Depreciation

Reconciliation of Depreciation and amortization (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	$ 2,577	$ 2,766	$ 2,877
Reportable segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	2,213	2,303	2,387
All Other operating segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	210	225	220
Cost Centers
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	136	130	143
Other
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	18	108	127
Machinery, Energy & Transportation | Reportable segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	1,384	1,469	1,567
Machinery, Energy & Transportation | Business
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	1,713	1,895	2,016
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	1,384	1,469	1,567
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	210	225	220
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	136	130	143
Machinery, Energy & Transportation | Business | Other
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	(17)	71	86
Financial Products | Business
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	864	871	861
Financial Products | Business | Reportable segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	829	834	820
Financial Products | Business | All Other operating segments
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	0	0	0
Financial Products | Business | Other
Reconciliation of Depreciation and amortization:
Total depreciation and amortization	$ 35	$ 37	$ 41

Reconciliation of Capital expen

Reconciliation of Capital expenditures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of Capital expenditures
Total capital expenditures	$ 2,669	$ 2,916	$ 2,336
Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	2,516	2,755	2,311
All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	131	170	134
Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	101	100	84
Timing
Reconciliation of Capital expenditures
Total capital expenditures	(11)	42	(96)
Other
Reconciliation of Capital expenditures
Total capital expenditures	(68)	(151)	(97)
Consolidating Adjustments
Reconciliation of Capital expenditures
Total capital expenditures	(41)	(80)	(33)
Consolidating Adjustments | Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Consolidating Adjustments | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Consolidating Adjustments | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Consolidating Adjustments | Timing
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Consolidating Adjustments | Other
Reconciliation of Capital expenditures
Total capital expenditures	(41)	(80)	(33)
Machinery, Energy & Transportation | Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	982	1,196	938
Machinery, Energy & Transportation | Business
Reconciliation of Capital expenditures
Total capital expenditures	1,074	1,221	916
Machinery, Energy & Transportation | Business | Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	982	1,196	938
Machinery, Energy & Transportation | Business | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	131	170	134
Machinery, Energy & Transportation | Business | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	101	100	84
Machinery, Energy & Transportation | Business | Timing
Reconciliation of Capital expenditures
Total capital expenditures	(11)	42	(96)
Machinery, Energy & Transportation | Business | Other
Reconciliation of Capital expenditures
Total capital expenditures	(129)	(287)	(144)
Financial Products | Business
Reconciliation of Capital expenditures
Total capital expenditures	1,636	1,775	1,453
Financial Products | Business | Reportable segments
Reconciliation of Capital expenditures
Total capital expenditures	1,534	1,559	1,373
Financial Products | Business | All Other operating segments
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Financial Products | Business | Cost Centers
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Financial Products | Business | Timing
Reconciliation of Capital expenditures
Total capital expenditures	0	0	0
Financial Products | Business | Other
Reconciliation of Capital expenditures
Total capital expenditures	$ 102	$ 216	$ 80

Information about Geogrphic are

Information about Geogrphic areas (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019
Segment Reporting Information
External sales and revenues	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 14,342	$ 13,510	$ 14,011	$ 12,859	$ 53,800	$ 54,722	$ 45,462
Property, Plant and Equipment, Net	12,904				13,574				12,904	13,574		$ 13,548
Inside United States
Segment Reporting Information
External sales and revenues									22,806	22,690	18,552
Property, Plant and Equipment, Net	7,568				8,152				7,568	8,152
Outside the United States
Segment Reporting Information
External sales and revenues									30,994	32,032	$ 26,910
Property, Plant and Equipment, Net	$ 5,336				$ 5,422				$ 5,336	$ 5,422

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Millions	Jan. 02, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Acquisitions
Net cash paid for acquisition		$ 47	$ 392	$ 59
ECM S.p.A.
Acquisitions
Percentage of equity acquired (as a percent)	100.00%
Net cash paid for acquisition	$ 225
Payments to acquire businesses, gross	249
Assets acquired
Tangible assets acquired	109
Cash	25
Receivables	28
Inventory	29
Property, plant and equipment	17
Finite-lived intangible assets acquired	112
Business Combination, Goodwill	$ 109
Finite-lived intangible assets, weighed average useful life (in years)	13 years
Liabilities assumed
Business Combination, Accounts Payable	$ 38
Business Combination, Deferred Tax Liabilities	29
Business Combination, debt assumed	1
Total liabilities assumed	79
Downer Freight Rail
Acquisitions
Net cash paid for acquisition	97
Assets acquired
Tangible assets acquired	86
Receivables	23
Inventory	40
Property, plant and equipment	15
Finite-Lived Customer Relationships, Gross	6
Finite-lived intangible assets acquired	6
Business Combination, Goodwill	$ 18
Finite-lived intangible assets, weighed average useful life (in years)	15 years
Liabilities assumed
Total liabilities assumed	$ 14

Restructuring Costs (Details)

Restructuring Costs (Details) $ in Millions	1 Months Ended	12 Months Ended			24 Months Ended	52 Months Ended
	Mar. 31, 2017	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2019USD ($)
Restructuring Cost [Abstract]
Restructuring costs		$ 236	$ 386	$ 1,256
Employee separation costs		48	112
Employee Separation Activity
Liability balance at beginning of period		85	249
Employee separation costs		48	112
Reduction in liability (payments and other adjustments)		85	276
Liability balance at end of period		48	85	249	$ 85	$ 48
Other restructuring costs
Restructuring Cost [Abstract]
Restructuring costs		122	182	173
Other operating income (expense) | Employee separation
Restructuring Cost [Abstract]
Restructuring costs		48	112	525
Other operating income (expense) | Contract termination
Restructuring Cost [Abstract]
Restructuring costs		1	7	183
Other operating income (expense) | Long-lived asset impairments
Restructuring Cost [Abstract]
Restructuring costs		65	93	346
Other operating income (expense) | Defined benefit retirement plan curtailment losses
Restructuring Cost [Abstract]
Restructuring costs		0	(8)	29
Gosselies closure announcement
Restructuring Cost [Abstract]
Restructuring and Related Cost, Number of Positions Eliminated	2,000
Restructuring costs					$ 647
September 2015 announcement
Restructuring Cost [Abstract]
Restructuring costs		$ 43	$ 121	$ 817		$ 1,831

Selected quarterly financial _3

Selected quarterly financial results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Sales and revenues	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 14,342	$ 13,510	$ 14,011	$ 12,859	$ 53,800		$ 54,722		$ 45,462
Cost of goods sold	9,117	8,569	9,941	9,003	9,987	9,022	9,422	8,566	36,630		36,997		31,260
Gross margin	3,269	3,405	3,730	3,721	3,643	3,741	3,857	3,584
Profit (loss)	$ 1,098	$ 1,494	$ 1,620	$ 1,881	$ 1,048	$ 1,727	$ 1,707	$ 1,665	$ 6,093	[1]	$ 6,147	[1]	$ 754	[1]
Profit (loss) per common share	$ 2	$ 2.69	$ 2.85	$ 3.29	$ 1.80	$ 2.92	$ 2.86	$ 2.78	$ 10.85		$ 10.39		$ 1.27
Profit (loss) per common share - diluted	$ 1.97	$ 2.66	$ 2.83	$ 3.25	$ 1.78	$ 2.88	$ 2.82	$ 2.74	$ 10.74	[2]	$ 10.26	[2]	$ 1.26	[2]
Pre-tax pension and other postretirement benefit plan actuarial losses	$ (468)				$ (495)				$ (468)		$ (495)		$ (301)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount											(25)
Charge/ (benefit) to U.S. deferred tax rate change 2017 U.S. tax reform						$ 154					$ 154
Taxes at U. S. statutory rate (as a percent)									21.00%		21.00%		35.00%
Correction of Prior Year Valuation Allowance						59					$ 59		$ (17)
Valuation allowances									$ 0		(29)		(111)
Adjustment to estimated tax for mandatory deemed repatriation of non-U.S. earnings				$ 178	50				178		50
U.S. 2017 tax reform estimated impact													2,371
U.S. state taxing jurisdictions
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount					(63)						(63)
Valuation allowances													(111)
Financial Products
Sales and revenues	758	$ 784	$ 761	742	712	747	$ 732	$ 709	3,045		2,900		2,786
Machinery, Energy & Transportation
Sales and revenues	$ 12,386	$ 11,974	$ 13,671	$ 12,724	$ 13,630	$ 12,763	$ 13,279	$ 12,150	$ 50,755		$ 51,822		$ 42,676
[1]	Profit attributable to common shareholders.
[2]	Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method.