Caterpillar (CAT) 10-Q 5 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document	6 Months Ended
	Jun. 30, 2020shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
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 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 Common Stock, Shares Outstanding	541,506,575
Entity Central Index Key	0000018230
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Common Stock
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 Statement of Resul

Consolidated Statement of Results of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2020		Jun. 30, 2019		Jun. 30, 2020		Jun. 30, 2019
Sales and revenues:
Sales and revenues	$ 9,997		$ 14,432		$ 20,632		$ 27,898
Operating costs:
Cost of goods sold	7,113		9,941		14,379		18,944
Selling, general and administrative expenses	1,179		1,309		2,300		2,628
Research and development expenses	341		441		697		876
Interest expense of Financial Products	149		192		324		382
Other operating (income) expenses	431		336		744		648
Total operating costs	9,213		12,219		18,444		23,478
Operating profit	784		2,213		2,188		4,420
Interest expense excluding Financial Products	135		103		248		206
Other income (expense)	29		68		251		228
Consolidated profit before taxes	678		2,178		2,191		4,442
Provision (benefit) for income taxes	227		565		652		952
Profit of consolidated companies	451		1,613		1,539		3,490
Equity in profit (loss) of unconsolidated affiliated companies	8		6		13		13
Profit of consolidated and affiliated companies	459		1,619		1,552		3,503
Less: Profit (loss) attributable to the noncontrolling interests	1		(1)		2		2
Profit	$ 458	[1]	$ 1,620	[1]	$ 1,550	[2]	$ 3,501	[2]
Profit per common share (in dollars per share)	$ 0.84		$ 2.85		$ 2.85		$ 6.14
Profit per common share - diluted (in dollars per share)	$ 0.84	[3]	$ 2.83	[3]	$ 2.83	[4]	$ 6.08	[4]
Weighted-average common shares outstanding (millions)
Basic (in shares)	541.5		567.8		544.5		569.9
Diluted (in shares)	544.5	[3]	573.1	[3]	548.2	[4]	575.8	[4]
Machinery, Energy & Transportation
Sales and revenues:
Sales and revenues	$ 9,310		$ 13,671		$ 19,224		$ 26,395
Financial Products
Sales and revenues:
Sales and revenues	$ 687		$ 761		$ 1,408		$ 1,503
[1]	Profit attributable to common shareholders.
[2]	Profit attributable to common shareholders.
[3]	Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
[4]	Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income QTD - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Profit of consolidated and affiliated companies	$ 459	$ 1,619
Other Comprehensive Income (Loss), Net of Tax:
Foreign currency translation, net of tax (provision)/benefit of: 2020- $9; 2019 - $6	175	99
Pension and other postretirement benefits:
Current year prior service credit (cost), net of tax (provision)/benefit of: 2020 - $0; 2019 - $0	2	0
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2020 - $3; 2019 - $3	(7)	(7)
Derivative financial instruments:
Gains (losses) deferred, net of tax (provision)/benefit of: 2020 - $20 ; 2019 - $4	(70)	(16)
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2020 - $(17) ; 2019 - $1	58	(1)
Available-for-sale securities:
Gains (losses) deferred, net of tax (provision)/benefit of: 2020 - ($13); 2019 - $(2)	39	15
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2020 - $0; 2019 - $0	0	(1)
Total other comprehensive income (loss), net of tax	197	89
Comprehensive income	656	1,708
Less: comprehensive income attributable to the noncontrolling interests	1	(1)
Comprehensive income attributable to shareholders	$ 655	$ 1,709

Consolidated statement of Com_2

Consolidated statement of Comprehensive income YTD Statement - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Profit of consolidated and affiliated companies	$ 1,552	$ 3,503
Foreign currency translation, net of tax (provision)/benefit of: 2020 - $(1); 2019 - $2	(185)	77
Current year prior service credit (cost), net of tax (provision)/benefit of: 2020 - $0; 2019 - $0	2	0
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2020 - $5; 2019 - $6	(14)	(14)
Gains (losses) deferred, net of tax (provision)/benefit of: 2020 - $23; 2019 - $1	(75)	(6)
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2020 - $(2); 2019 - $3	3	(10)
Gains (losses) deferred, net of tax (provision)/benefit of: 2020 - $(9); 2019 - $(8)	21	30
Total other comprehensive income (loss), net of tax	(248)	77
Comprehensive income	1,304	3,580
Less: comprehensive income attributable to the noncontrolling interests	2	2
Comprehensive income attributable to shareholders	$ 1,302	$ 3,578

Consolidated Statement of Com_3

Consolidated Statement of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Foreign currency translation, tax (provision)/benefit	$ 9	$ 6	$ (1)	$ 2
Pension and other postretirement benefits, Current year actuarial gain (loss), tax (provision)/benefit	0	0	0	0
Pension and other postretirement benefits, Amortization of actuarial (gain) loss, tax (provision)/benefit	0	0	0	0
Pension and other postretirement benefits, Current year prior service credit (cost), tax (provision)/benefit	0	0	0	0
Pension and other postretirement benefits, Amortization of prior service (credit) cost, tax (provision)/benefit	3	3	5	6
Amortization of transition (asset) obligation, (provision)/benefit	0	0	0	0
Derivative financial instruments, Gains (losses) deferred, tax (provision)/benefit	20	4	23	1
Derivative financial instruments, (Gains) losses reclassified to earnings, tax (provision)/benefit	(17)	1	(2)	3
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit	0	0	0	0
Available-for-sale securities, Gains (losses) deferred, tax (provision)/benefit	$ (13)	$ (2)	$ (9)	$ (8)

Consolidated Statement of Finan

Consolidated Statement of Financial Position - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and short-term investments	$ 8,784	$ 8,284
Receivables - trade and other	7,134	8,568
Receivables - finance	8,781	9,336
Prepaid expenses and other current assets	1,792	1,739
Inventories	11,371	11,266
Total current assets	37,862	39,193
Property, plant and equipment - net	12,357	12,904
Long-term receivables - trade and other	1,167	1,193
Long-term receivables - finance	12,560	12,651
Noncurrent deferred and refundable income taxes	1,459	1,411
Intangible assets	1,420	1,565
Goodwill	6,192	6,196
Other assets	3,549	3,340
Total assets	76,566	78,453
Short-term borrowings:
Machinery, Energy & Transportation	13	5
Financial Products	4,301	5,161
Accounts payable	5,083	5,957
Accrued expenses	3,547	3,750
Accrued wages, salaries and employee benefits	958	1,629
Customer advances	1,227	1,187
Dividends payable	558	567
Other current liabilities	2,143	2,155
Long-term debt due within one year:
Machinery, Energy & Transportation	1,395	16
Financial Products	6,006	6,194
Total current liabilities	25,231	26,621
Long-term debt due after one year:
Machinery, Energy & Transportation	9,729	9,141
Financial Products	17,178	17,140
Liability for postemployment benefits	6,285	6,599
Other liabilities	4,366	4,323
Total liabilities	62,789	63,824
Commitments and contingencies (Notes 11 and 14)
Shareholders' equity
Common stock of $1.00 par value: Authorized shares: 2,000,000,000 Issued shares: (6/30/2020 and 12/31/19 – 814,894,624) at paid-in amount	6,120	5,935
Treasury stock (6/30/20 – 273,388,049 shares; 12/31/19 – 264,812,014 shares) at cost	(25,412)	(24,217)
Profit employed in the business	34,841	34,437
Accumulated other comprehensive income (loss)	(1,815)	(1,567)
Noncontrolling interests	43	41
Total shareholders' equity	13,777	14,629
Total liabilities and shareholders' equity	$ 76,566	$ 78,453

Consolidated Statement of Fin_2

Consolidated Statement of Financial Position (Parentheticals) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
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	273,388,049	264,812,014

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Millions		Total	Common stock	Treasury stock	Profit employed in the business	Accumulated other comprehensive income (loss)	Noncontrolling interests
Balance at Dec. 31, 2018		$ 14,080	$ 5,827	$ (20,531)	$ 30,427	$ (1,684)	$ 41
Adjustment to adopt new accounting guidance | Lease accounting	[1]	235	0	0	235	0	0
Adjustment to adopt new accounting guidance | Reclassification of certain tax effects from accumulated other comprehensive income	[1]	0	0	0	(108)	108	0
Balance at Jan. 01, 2019		14,315	5,827	(20,531)	30,554	(1,576)	41
Balance at Dec. 31, 2018		14,080	5,827	(20,531)	30,427	(1,684)	41
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		3,503	0	0	3,501	0	2
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		77	0	0	0	77	0
Pension and other postretirement benefits, net of tax		(14)	0	0	0	(14)	0
Derivative financial instruments, net of tax		(16)	0	0	0	(16)	0
Available-for-sale securities, net of tax		30	0	0	0	30	0
Dividends, Common Stock, Cash	[2]	(1,074)	0	0	(1,074)	0	0
Distribution to noncontrolling interests		(2)	0	0	0	0	(2)
Common shares issued from treasury stock for stock-based compensation: three months: 644,039 in 2019 and 322,888 for 2020; six months: 1,503,104 in 2019 and 1,519,971 in 2020		39	(62)	101	0	0	0
Stock-based compensation expense, before tax (in dollars)		113	113	0	0	0	0
Common shares repurchased: three months: 9,757,126 in 2019 and 767,822 in 2020; six months: 15,456,651 in 2019 and 10,096,006 in 2020	[1]	(2,037)	0	(2,037)	0	0	0
Other		(56)	56	0	0	0	0
Balance at Jun. 30, 2019		$ 14,878	5,822	(22,467)	32,981	(1,499)	41
Increase (Decrease) in Shareholders' Equity
Common Stock, Dividends, Per Share, Declared		$ 1.89
Balance at Mar. 31, 2019		$ 15,478	5,804	(21,214)	32,435	(1,588)	41
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		1,619	0	0	1,620	0	(1)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		99	0	0	0	99	0
Pension and other postretirement benefits, net of tax		(7)	0	0	0	(7)	0
Derivative financial instruments, net of tax		(17)	0	0	0	(17)	0
Available-for-sale securities, net of tax		14	0	0	0	14	0
Dividends, Common Stock, Cash	[3]	(1,074)	0	0	(1,074)	0	0
Distribution to noncontrolling interests		(1)	0	0	0	0	(1)
Common shares issued from treasury stock for stock-based compensation: three months: 644,039 in 2019 and 322,888 for 2020; six months: 1,503,104 in 2019 and 1,519,971 in 2020		44	11	33	0	0	0
Stock-based compensation expense, before tax (in dollars)		68	68	0	0	0	0
Common shares repurchased: three months: 9,757,126 in 2019 and 767,822 in 2020; six months: 15,456,651 in 2019 and 10,096,006 in 2020	[4]	(1,286)	0	(1,286)	0	0	0
Other		(59)	(61)	0	0	0	2
Balance at Jun. 30, 2019		$ 14,878	5,822	(22,467)	32,981	(1,499)	41
Increase (Decrease) in Shareholders' Equity
Common Stock, Dividends, Per Share, Declared		$ 1.89
Balance at Dec. 31, 2019		$ 14,629	5,935	(24,217)	34,437	(1,567)	41
Adjustment to adopt new accounting guidance | Credit losses	[5]	(25)	0	0	(25)	0	0
Balance at Jan. 01, 2020		14,604	5,935	(24,217)	34,412	(1,567)	41
Balance at Dec. 31, 2019		14,629	5,935	(24,217)	34,437	(1,567)	41
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		1,552	0	0	1,550	0	2
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		(185)	0	0	0	(185)	0
Pension and other postretirement benefits, net of tax		(12)	0	0	0	(12)	0
Derivative financial instruments, net of tax		(72)	0	0	0	(72)	0
Available-for-sale securities, net of tax		21	0	0	0	21	0
Dividends, Common Stock, Cash	[2]	(1,121)	0	0	(1,121)	0	0
Common shares issued from treasury stock for stock-based compensation: three months: 644,039 in 2019 and 322,888 for 2020; six months: 1,503,104 in 2019 and 1,519,971 in 2020		(10)	(66)	56	0	0	0
Stock-based compensation expense, before tax (in dollars)		114	114	0	0	0	0
Common shares repurchased: three months: 9,757,126 in 2019 and 767,822 in 2020; six months: 15,456,651 in 2019 and 10,096,006 in 2020	[1]	(1,250)	0	(1,250)	0	0	0
Other		136	137	(1)	0	0	0
Balance at Jun. 30, 2020		$ 13,777	6,120	(25,412)	34,841	(1,815)	43
Increase (Decrease) in Shareholders' Equity
Common Stock, Dividends, Per Share, Declared		$ 2.06
Balance at Mar. 31, 2020		$ 14,239	6,046	(25,341)	35,504	(2,012)	42
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		459	0	0	458	0	1
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax		175	0	0	0	175	0
Pension and other postretirement benefits, net of tax		(5)	0	0	0	(5)	0
Derivative financial instruments, net of tax		(12)	0	0	0	(12)	0
Available-for-sale securities, net of tax		39	0	0	0	39	0
Dividends, Common Stock, Cash	[3]	(1,121)	0	0	(1,121)	0	0
Common shares issued from treasury stock for stock-based compensation: three months: 644,039 in 2019 and 322,888 for 2020; six months: 1,503,104 in 2019 and 1,519,971 in 2020		13	(4)	17	0	0	0
Stock-based compensation expense, before tax (in dollars)		67	67	0	0	0	0
Common shares repurchased: three months: 9,757,126 in 2019 and 767,822 in 2020; six months: 15,456,651 in 2019 and 10,096,006 in 2020	[4]	(87)	0	(87)	0	0	0
Other		10	11	(1)	0	0	0
Balance at Jun. 30, 2020		$ 13,777	$ 6,120	$ (25,412)	$ 34,841	$ (1,815)	$ 43
Increase (Decrease) in Shareholders' Equity
Common Stock, Dividends, Per Share, Declared		$ 2.06
[1]	See Note 12 for additional information.
[2]	Dividends per share of common stock of $2.06 and $1.89 were declared in the six months ended June 30, 2020 and 2019, respectively.
[3]	Dividends per share of common stock of $2.06 and $1.89 were declared in the three months ended June 30, 2020 and 2019, respectively.
[4]	See Note 12 for additional information.
[5]	See Note 2 for additional information.

Consolidated Statement of Cha_2

Consolidated Statement of Changes in Shareholders' Equity (Parentheticals) - shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Statement of Stockholders' Equity [Abstract]
Common shares issued from treasury stock for stock-based compensation (in shares)	1,591,971	2,503,104
Common shares repurchased (in shares)	10,096,006	15,456,651

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$ 1,552	$ 3,503
Adjustments for non-cash items:
Depreciation and amortization	1,222	1,288
Net gain on remeasurement of pension obligations	(132)	0
Provision (benefit) for deferred income taxes	(32)	(34)
Other	674	440
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other	1,176	(166)
Inventories	(145)	(487)
Accounts payable	(655)	134
Accrued expenses	(253)	151
Accrued wages, salaries and employee benefits	(648)	(979)
Customer advances	(2)	14
Other assets - net	(7)	(120)
Other liabilities - net	(229)	(35)
Net cash provided by (used for) operating activities	2,521	3,709
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others	472	479
Expenditures for equipment leased to others	(526)	(746)
Proceeds from disposals of leased assets and property, plant and equipment	382	422
Additions to finance receivables	(6,712)	(6,181)
Collections of finance receivables	6,801	5,902
Proceeds from sale of finance receivables	31	119
Investments and acquisitions (net of cash acquired)	(49)	(3)
Proceeds from sale of businesses and investments (net of cash sold)	13	0
Proceeds from sale of securities	151	170
Investments in securities	(369)	(243)
Other - net	7	(40)
Net Cash Provided by (Used in) Investing Activities	(743)	(1,079)
Cash flow from financing activities:
Dividends paid	(1,125)	(986)
Common stock issued, including treasury shares reissued	(10)	39
Common shares repurchased	(1,130)	(2,105)
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	1,991	0
Financial Products	4,168	5,340
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(12)	(4)
Financial Products	(4,617)	(4,897)
Short-term borrowings - net (original maturities three months or less)	(477)	(436)
Other - net	(1)	(2)
Net cash provided by (used for) financing activities	(1,213)	(3,051)
Effect of exchange rate changes on cash	(66)	(10)
Increase (decrease) in cash and short-term investments and restricted cash	499	(431)
Cash and short-term investments and restricted cash at beginning of period	8,292	7,890
Cash and short-term investments and restricted cash at end of period	$ 8,791	$ 7,459

Nature of Operations, Basis of

Nature of Operations, Basis of Presentation and Change in Accounting Principle	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Basis of Presentation	A. Nature of operations Information in our financial statements and related commentary are presented in the following categories: Machinery, Energy & Transportation (ME&T) – Represents the aggregate total of Construction Industries, Resource Industries, Energy & Transportation and the 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. B. Basis of presentation In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and six months ended June 30, 2020 and 2019 , (b) the consolidated comprehensive income for the three and six months ended June 30, 2020 and 2019 , (c) the consolidated financial position at June 30, 2020 and December 31, 2019 , (d) the consolidated changes in shareholders’ equity for the three and six months ended June 30, 2020 and 2019 and (e) the consolidated cash flow for the six months ended June 30, 2020 and 2019 . The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our company’s annual report on Form 10-K for the year ended December 31, 2019 ( 2019 Form 10-K). The December 31, 2019 financial position data included herein is derived from the audited consolidated financial statements included in the 2019 Form 10-K but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation. Unconsolidated Variable Interest Entities (VIEs) We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the economic performance of each entity. Our maximum exposure to loss from these VIEs for which we are not the primary beneficiary was $92 million and $133 million as of June 30, 2020 and December 31, 2019 , 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 were evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

New Accounting Guidance

New Accounting Guidance	6 Months Ended
	Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]
New Accounting Guidance	New accounting guidance A. Adoption of new accounting standards Credit losses (Accounting Standards Update (ASU) 2016-13) – In June 2016, the Financial Accounting Standards Board (FASB) issued new 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 applies 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 also applies to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance was effective January 1, 2020. We applied the new guidance using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of January 1, 2020. We have not recast prior period comparative information, which we continue to report under the accounting guidance in effect for those periods. Our adoption of the new guidance did not have a material impact on our financial statements. We adopted the following ASUs effective January 1, 2020, none of which had a material impact on our financial statements: ASU Description 2018-13 Fair value measurement 2018-15 Internal-use software 2018-19 Codification improvements - Credit losses 2019-04 Codification improvements - Credit losses, Derivatives & hedging, and Financial instruments 2019-05 Financial instruments - Credit losses 2019-11 Codification improvements - Credit losses 2019-12 Simplifying accounting for income taxes 2020-02 Financial instruments - Credit losses 2020-03 Codification improvements - Financial instruments B. Accounting standards issued but not yet adopted Reference rate reform (ASU 2020-04) – In March 2020, the FASB issued accounting guidance to ease the potential burden in accounting for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur between March 12, 2020 through December 31, 2022. We are evaluating the impact of reference rate reform on our contracts and assessing the impacts of adopting this guidance on our financial statements. We consider the applicability and impact of all ASUs. We assessed ASUs not listed above and determined that they either were not applicable or were not expected to have a material impact on our financial statements.

Sales and revenue contract info

Sales and revenue contract information	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue from contracts with customers	Sales and revenue contract information Trade receivables represent amounts due from dealers and end users for the sale of our products. In addition, Cat Financial provides wholesale inventory financing for a dealer’s purchase of inventory. We include wholesale inventory receivables in Receivables – trade and other and Long-term receivables – trade and other in the Consolidated Statement of Financial Position. Trade receivables from dealers and end users were $6,191 million , $7,648 million and $7,743 million as of June 30, 2020 , December 31, 2019 and December 31, 2018 , respectively. We recognize trade receivables from dealers and end users in Receivables – trade and other in the Consolidated Statement of Financial Position. Long-term trade receivables from dealers and end users were $700 million , $693 million and $674 million as of June 30, 2020 , December 31, 2019 and December 31, 2018 , respectively. We recognize long-term trade receivables from dealers and end users in Long-term receivables – trade and other in the Consolidated Statement of Financial Position. 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 the Consolidated Statement of Financial Position. Contract liabilities were $1,641 million , $1,654 million and $1,680 million as of June 30, 2020 , December 31, 2019 and December 31, 2018 , respectively. We reduce the contract liability when revenue is recognized. During the three and six months ended June 30, 2020 , we recognized $331 million and $699 million , respectively, of revenue that was recorded as a contract liability at the beginning of 2020 . During the three and six months ended June 30, 2019 , we recognized $368 million and $875 million , respectively, of revenue that was recorded as a contract liability at the beginning of 2019 . As of June 30, 2020 , 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 $5.9 billion , of which $2.4 billion is expected to be completed and revenue recognized in the twelve months following June 30, 2020 . We have elected the practical expedient not to 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. See Note 16 for further disaggregated sales and revenues information.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-based compensation Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant date fair value of the award. Our stock-based compensation primarily consists of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs). We recognized pretax stock-based compensation expense of $67 million and $114 million for the three and six months ended June 30, 2020 , respectively, and $68 million and $113 million for the three and six months ended June 30, 2019 , respectively. The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2020 and 2019 , respectively: Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Stock options 1,913,888 $ 25.98 $ 127.60 1,499,524 $ 40.98 $ 138.35 RSUs 705,287 $ 127.60 $ 127.60 657,389 $ 138.35 $ 138.35 PRSUs 371,641 $ 127.60 $ 127.60 342,097 $ 138.35 $ 138.35 The following table provides the assumptions used in determining the fair value of the stock-based awards for the six months ended June 30, 2020 and 2019 , respectively: Grant Year 2020 2019 Weighted-average dividend yield 2.47% 2.56% Weighted-average volatility 25.7% 29.1% Range of volatilities 24.5-29.7% 25.1-38.7% Range of risk-free interest rates 1.21-1.39% 2.48-2.68% Weighted-average expected lives 8 years 7 years As of June 30, 2020 , the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $228 million , which will be amortized over the weighted-average remaining requisite service periods of approximately 1.8

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	6 Months Ended
	Jun. 30, 2020
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. We present at least annually to the Audit Committee of the Board of Directors on our risk management practices, including our use of financial derivative instruments. We recognize all derivatives at their fair value on the Consolidated Statement of Financial Position. 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. We record in current earnings 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. We record in Accumulated other comprehensive income (loss) (AOCI) changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, on the Consolidated Statement of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings. We report changes in the fair value of undesignated derivative instruments in current earnings. We classify cash flows from designated derivative financial instruments within the same category as the item being hedged on the Consolidated Statement of Cash Flow. We include cash flows from undesignated derivative financial instruments in the investing category on the Consolidated Statement of Cash Flow. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities on the Consolidated Statement of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. Foreign Currency Exchange Rate Risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our 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 five years . As of June 30, 2020 , 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, Euro, 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. We perform designation on a specific exposure basis to support hedge accounting. The remainder of ME&T foreign currency contracts are undesignated. As of June 30, 2020 , $50 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in current earnings 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. 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. We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the original term of the previously designated hedged item. Commodity Price Risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw 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 the Consolidated Statement of Financial Position were as follows: (Millions of dollars) Consolidated Statement of Financial Asset (Liability) Fair Value Position Location June 30, 2020 December 31, 2019 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 15 $ 18 Machinery, Energy & Transportation Long-term receivables – trade and other 11 9 Machinery, Energy & Transportation Accrued expenses (81 ) (20 ) Machinery, Energy & Transportation Other liabilities (36 ) — Financial Products Receivables – trade and other 53 54 Financial Products Long-term receivables – trade and other 4 13 Financial Products Accrued expenses (3 ) (3 ) Interest rate contracts Machinery, Energy & Transportation Other liabilities (1 ) — Financial Products Receivables – trade and other 4 — Financial Products Long-term receivables – trade and other 65 5 Financial Products Accrued expenses (26 ) (25 ) $ 5 $ 51 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 2 $ 1 Machinery, Energy & Transportation Accrued expenses (2 ) — Financial Products Receivables – trade and other 49 7 Financial Products Long-term receivables – trade and other 12 5 Financial Products Accrued expenses (12 ) (22 ) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 6 4 Machinery, Energy & Transportation Long-term receivables – trade and other 1 — Machinery, Energy & Transportation Accrued expenses (13 ) (1 ) $ 43 $ (6 ) The total notional amounts of the derivative instruments were as follows: (Millions of dollars) June 30, 2020 December 31, 2019 Machinery, Energy & Transportation $ 3,598 $ 2,563 Financial Products $ 11,454 $ 8,931 The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties. We calculate the amounts exchanged by the parties by referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates or commodity prices. The effect of derivatives designated as hedging instruments on the Consolidated Statement of Results of Operations was as follows: Cash Flow Hedges Three Months Ended June 30, 2020 Recognized in Earnings (Millions of dollars) Amount of Gains (Losses) Recognized in AOCI Classification of Amount of Gains Amount of the line items in the Consolidated Statement of Results of Operations Foreign exchange contracts Machinery, Energy & Transportation $ (34 ) Sales of Machinery, Energy & Transportation $ 11 $ 9,310 Cost of goods sold (32 ) 7,113 Financial Products (35 ) Interest expense of Financial Products 9 149 Other income (expense) (43 ) 29 Interest rate contracts Machinery, Energy & Transportation (12 ) Interest expense excluding Financial Products (1 ) 135 Financial Products (9 ) Interest expense of Financial Products (19 ) 149 $ (90 ) $ (75 ) Three Months Ended June 30, 2019 Recognized in Earnings Amount of Gains Classification of Amount of Gains Amount of the line items in the Consolidated Statement of Results of Operations Foreign exchange contracts Machinery, Energy & Transportation $ 4 Cost of goods sold $ (1 ) $ 9,941 Financial Products 10 Interest expense of Financial Products 7 192 Other income (expense) (4 ) 68 Interest rate contracts Financial Products (34 ) Interest expense of Financial Products — 192 $ (20 ) $ 2 Cash Flow Hedges Six Months Ended June 30, 2020 Recognized in Earnings (Millions of dollars) Amount of Gains (Losses) Recognized in AOCI Classification of Amount of Gains Amount of the line items in the Consolidated Statement of Results of Operations Foreign exchange contracts Machinery, Energy & Transportation $ (124 ) Sales of Machinery, Energy & Transportation $ 16 $ 19,224 Cost of goods sold (43 ) 14,379 Financial Products 66 Interest expense of Financial Products 20 324 Other income (expense) 28 251 Interest rate contracts Machinery, Energy & Transportation (16 ) Interest expense excluding Financial Products (2 ) 248 Financial Products (24 ) Interest expense of Financial Products (24 ) 324 $ (98 ) $ (5 ) Six Months Ended June 30, 2019 Recognized in Earnings Amount of Gains Classification of Amount of Gains Amount of the line items in the Consolidated Statement of Results of Operations Foreign exchange contracts Machinery, Energy & Transportation $ 21 Sales of Machinery, Energy & Transportation $ 1 $ 26,395 Cost of goods sold (4 ) 18,944 Financial Products 32 Interest expense of Financial Products 14 382 Other income (expense) 2 228 Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) 206 Financial Products (60 ) Interest expense of Financial Products 1 382 $ (7 ) $ 13 The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations was as follows: (Millions of dollars) Classification of Gains (Losses) Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 16 $ 7 Financial Products Other income (expense) (23 ) (10 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) 15 (7 ) $ 8 $ (10 ) Classification of Gains (Losses) Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 13 $ 13 Financial Products Other income (expense) 85 (39 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) (31 ) 16 $ 67 $ (10 ) 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 June 30, 2020 and December 31, 2019 , 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 was as follows: June 30, 2020 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 $ 35 $ — $ 35 $ (34 ) $ — $ 1 Financial Products 187 — 187 (33 ) — 154 Total $ 222 $ — $ 222 $ (67 ) $ — $ 155 June 30, 2020 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 $ (133 ) $ — $ (133 ) $ 34 $ — $ (99 ) Financial Products (41 ) — (41 ) 33 — (8 ) Total $ (174 ) $ — $ (174 ) $ 67 $ — $ (107 ) 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 )

Inventories

Inventories	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories (principally using the last-in, first-out (LIFO) method) were comprised of the following: (Millions of dollars) June 30, December 31, Raw materials $ 4,193 $ 4,263 Work-in-process 1,076 1,147 Finished goods 5,839 5,598 Supplies 263 258 Total inventories $ 11,371 $ 11,266

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible assets and goodwill A. Intangible assets Intangible assets were comprised of the following: June 30, 2020 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,421 $ (1,472 ) $ 949 Intellectual property 12 1,504 (1,088 ) 416 Other 13 180 (125 ) 55 Total finite-lived intangible assets 14 $ 4,105 $ (2,685 ) $ 1,420 December 31, 2019 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 Amortization expense for the three and six months ended June 30, 2020 was $78 million and $158 million , respectively. Amortization expense for the three and six months ended June 30, 2019 was $81 million and $163 million , respectively. Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Six Months of 2020 2021 2022 2023 2024 Thereafter $151 $291 $274 $217 $159 $328 B. Goodwill No goodwill was impaired during the six months ended June 30, 2020 or 2019 . The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2020 were as follows: (Millions of dollars) December 31, Other Adjustments 1 June 30, Construction Industries Goodwill $ 306 $ 1 $ 307 Impairments (22 ) — (22 ) Net goodwill 284 1 285 Resource Industries Goodwill 4,156 (4 ) 4,152 Impairments (1,175 ) — (1,175 ) Net goodwill 2,981 (4 ) 2,977 Energy & Transportation Goodwill 2,875 (2 ) 2,873 All Other 2 Goodwill 56 1 57 Consolidated total Goodwill 7,393 (4 ) 7,389 Impairments (1,197 ) — (1,197 ) Net goodwill $ 6,196 $ (4 ) $ 6,192 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segment (See Note 16).

Investments in Debt and Equity

Investments in Debt and Equity Securities	6 Months Ended
	Jun. 30, 2020
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 we record at fair value and primarily include in Other assets in the Consolidated Statement of Financial Position. We classify debt securities as available-for-sale, and we include the unrealized gains and losses arising from the revaluation of these debt securities, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in the Consolidated Statement of Results of Operations. We generally determine realized gains and losses on sales of investments using the specific identification method for debt and equity securities and include them in Other income (expense) in the Consolidated Statement of Results of Operations. The cost basis and fair value of debt securities with unrealized gains and losses included in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position) were as follows: June 30, 2020 December 31, 2019 (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 50 1 51 54 — 54 Corporate bonds Corporate bonds 917 38 955 836 20 856 Asset-backed securities 142 1 143 62 — 62 Mortgage-backed debt securities U.S. governmental agency 369 12 381 327 4 331 Residential 6 — 6 6 — 6 Commercial 62 3 65 46 1 47 Total debt securities $ 1,555 $ 55 $ 1,610 $ 1,340 $ 25 $ 1,365 Available-for-sale investments in an unrealized loss position: June 30, 2020 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds Corporate bonds $ 95 $ 4 $ 43 $ 1 $ 138 $ 5 Asset-backed securities 53 1 2 — 55 1 Total $ 148 $ 5 $ 45 $ 1 $ 193 $ 6 December 31, 2019 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds Corporate bonds $ 58 $ 1 $ 50 $ — $ 108 $ 1 Total $ 58 $ 1 $ 50 $ — $ 108 $ 1 1 Indicates the length of time that individual securities have been in a continuous unrealized loss position. Corporate Bonds The unrealized losses on our investments in corporate bonds and Asset-backed Securities relate to changes in interest rates and credit-related yield spreads since time of purchase. We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis. We did not expect credit-related losses on these investments as of June 30, 2020 . The cost basis and fair value of the available-for-sale debt securities at June 30, 2020 , by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. June 30, 2020 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 126 $ 127 Due after one year through five years 689 718 Due after five years through ten years 213 222 Due after ten years 90 91 U.S. governmental agency mortgage-backed securities 369 381 Residential mortgage-backed securities 6 6 Commercial mortgage-backed securities 62 65 Total debt securities – available-for-sale $ 1,555 $ 1,610 Sales of available-for-sale securities: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2020 2019 2020 2019 Proceeds from the sale of available-for-sale securities $ 66 $ 97 $ 124 $ 144 Gross gains from the sale of available-for-sale securities 1 1 1 1 Gross losses from the sale of available-for-sale securities 1 — 1 1 For the three months ended June 30, 2020 and 2019, the net unrealized gains (losses) for equity securities held at June 30, 2020 and 2019 were $26 million and $14 million , respectively. For the six months ended June 30, 2020 and 2019, the net unrealized gains (losses) for equity securities held at June 30, 2020 and 2019 were $(14) million and $53 million , respectively.

Postretirement Benefits

Postretirement Benefits	6 Months Ended
	Jun. 30, 2020
Retirement Benefits [Abstract]
Postretirement Benefits	Postretirement benefits A. Pension and postretirement benefit costs U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) June 30 June 30 June 30 2020 2019 2020 2019 2020 2019 For the three months ended: Components of net periodic benefit cost: Service cost $ — $ 28 $ 14 $ 20 $ 24 $ 21 Interest cost 121 150 21 24 27 34 Expected return on plan assets (198 ) (179 ) (38 ) (38 ) (3 ) (5 ) Amortization of prior service cost (credit) — — — — (10 ) (10 ) (Gain) loss on remeasurement of pension obligations 1 2 — 120 — — — Curtailments, settlements and termination benefits 1 — — 21 — — — Net periodic benefit cost (benefit) 2 $ (75 ) $ (1 ) $ 138 $ 6 $ 38 $ 40 For the six months ended: Components of net periodic benefit cost: Service cost $ — $ 57 $ 28 $ 41 $ 47 $ 41 Interest cost 242 300 40 47 53 68 Expected return on plan assets (396 ) (360 ) (73 ) (75 ) (6 ) (10 ) Amortization of prior service cost (credit) — — — — (19 ) (20 ) (Gain) loss on remeasurement of pension obligations 1 2 — (134 ) — — — Curtailments, settlements and termination benefits 1 — — 21 — — — Net periodic benefit cost (benefit) 2 $ (152 ) $ (3 ) $ (118 ) $ 13 $ 75 $ 79 1 Total lump-sum transfers out of certain pension plans exceeded the service and interest cost for 2020, which required us to follow settlement accounting and remeasure the plans' obligations as of March 31, 2020 and June 30, 2020. 2 The service cost component is included in Operating costs in the Consolidated Statement of Results of Operations. All other components are included in Other income (expense) in the Consolidated Statement of Results of Operations. We made $72 million and $170 million of contributions to our pension and other postretirement plans during the three and six months ended June 30, 2020 , respectively. We currently anticipate full-year 2020 contributions of approximately $280 million . B. Defined contribution benefit costs Total company costs related to our defined contribution plans were as follows: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2020 2019 2020 2019 U.S. Plans $ 126 $ 93 $ 145 $ 230 Non-U.S. Plans 20 21 43 42 $ 146 $ 114 $ 188 $ 272 The decrease in the U.S. defined contribution benefit costs for the six months ended June 30, 2020 was primarily due to the fair value adjustments related to our non-qualified deferred compensation plans.

Leases

Leases	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Leases	Leases Revenues from finance and operating leases, primarily included in Revenues of Financial Products on the Consolidated Statement of Results of Operations, were as follows: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Finance lease revenue $ 119 $ 135 $ 244 $ 254 Operating lease revenue 285 308 588 624 Total $ 404 $ 443 $ 832 $ 878 We present revenues net of sales and other related taxes.

Guarantees and Product Warranty

Guarantees and Product Warranty	6 Months Ended
	Jun. 30, 2020
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 guarantee We have provided a guarantee to a customer in Europe related to the performance of contractual obligations by a supplier consortium to which one of our Caterpillar subsidiaries is a member. The guarantee covers potential damages incurred by the customer resulting from the supplier consortium's non-performance. The damages are capped except for failure of the consortium to meet certain obligations outlined in the contract in the normal course of business. The guarantee will expire when the supplier consortium performs all of its contractual obligations, which is expected to be completed in 2022. 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 both June 30, 2020 and December 31, 2019 , the related recorded liability was $5 million . The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was as follows: (Millions of dollars) June 30, December 31, Caterpillar dealer performance guarantees $ 1,139 $ 1,150 Supplier consortium performance guarantee 241 238 Other guarantees 188 221 Total guarantees $ 1,568 $ 1,609 Cat Financial provides guarantees to repurchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. Cat Financial has a loan purchase agreement with the SPC that obligates Cat Financial to purchase certain loans that are not paid at maturity. Cat Financial receives a fee for providing this guarantee, which provides a source of liquidity for the SPC. Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC. As of June 30, 2020 and December 31, 2019 , the SPC’s assets of $1,299 million and $1,453 million , respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $1,299 million and $1,452 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. We determine our product warranty liability by applying historical claim rate experience to the current field population and dealer inventory. Generally, we base historical claim rates on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America). We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience. (Millions of dollars) 2020 Warranty liability, January 1 $ 1,541 Reduction in liability (payments) (436 ) Increase in liability (new warranties) 428 Warranty liability, June 30 $ 1,533 (Millions of dollars) 2019 Warranty liability, January 1 $ 1,391 Reduction in liability (payments) (903 ) Increase in liability (new warranties) 1,053 Warranty liability, December 31 $ 1,541

Profit Per Share

Profit Per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Profit Per Share	Profit per share Computations of profit per share: Three Months Ended June 30 Six Months Ended June 30 (Dollars in millions except per share data) 2020 2019 2020 2019 Profit for the period (A) 1 $ 458 $ 1,620 $ 1,550 $ 3,501 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 541.5 567.8 544.5 569.9 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 3.0 5.3 3.7 5.9 Average common shares outstanding for fully diluted computation (C) 2 544.5 573.1 548.2 575.8 Profit per share of common stock: Assuming no dilution (A/B) $ 0.84 $ 2.85 $ 2.85 $ 6.14 Assuming full dilution (A/C) 2 $ 0.84 $ 2.83 $ 2.83 $ 6.08 Shares outstanding as of June 30 (in millions) 541.5 562.6 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. For the three and six months ended June 30, 2020 and 2019 , we excluded 4.9 million and 3.0 million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive. In July 2018, the Board approved a share repurchase authorization (the 2018 Authorization) of up to $10.0 billion of Caterpillar common stock effective January 1, 2019, with no expiration. As of June 30, 2020 , approximately $4.8 billion remained available under the 2018 Authorization. For the three and six months ended June 30, 2020 , we repurchased 0.8 million and 10.1 million shares of Caterpillar common stock, respectively, at an aggregate cost of $87 million and $1.3 billion , respectively. For the three and six months ended June 30, 2019 , we repurchased 9.8 million and 15.5 million shares of Caterpillar common stock, respectively, at an aggregate cost of $1.3 billion and $2.0 billion

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income (loss) We present comprehensive income and its components in the Consolidated Statement of Comprehensive Income. Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Shareholders’ Equity, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Three Months Ended June 30, 2020 Balance at March 31, 2020 $ (1,847 ) $ (10 ) $ (157 ) $ 2 $ (2,012 ) Other comprehensive income (loss) before reclassifications 177 2 (70 ) 39 148 Amounts reclassified from accumulated other comprehensive (income) loss (2 ) (7 ) 58 — 49 Other comprehensive income (loss) 175 (5 ) (12 ) 39 197 Balance at June 30, 2020 $ (1,672 ) $ (15 ) $ (169 ) $ 41 $ (1,815 ) Three Months Ended June 30, 2019 Balance at March 31, 2019 $ (1,525 ) $ 24 $ (88 ) $ 1 $ (1,588 ) Other comprehensive income (loss) before reclassifications 99 — (16 ) 15 98 Amounts reclassified from accumulated other comprehensive (income) loss — (7 ) (1 ) (1 ) (9 ) Other comprehensive income (loss) 99 (7 ) (17 ) 14 89 Balance at June 30, 2019 $ (1,426 ) $ 17 $ (105 ) $ 15 $ (1,499 ) (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Six Months Ended June 30, 2020 Balance at December 31, 2019 $ (1,487 ) $ (3 ) $ (97 ) $ 20 $ (1,567 ) Other comprehensive income (loss) before reclassifications (207 ) 2 (75 ) 21 (259 ) Amounts reclassified from accumulated other comprehensive (income) loss 22 (14 ) 3 — 11 Other comprehensive income (loss) (185 ) (12 ) (72 ) 21 (248 ) Balance at June 30, 2020 $ (1,672 ) $ (15 ) $ (169 ) $ 41 $ (1,815 ) Six Months Ended June 30, 2019 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 77 — (6 ) 30 101 Amounts reclassified from accumulated other comprehensive (income) loss — (14 ) (10 ) — (24 ) Other comprehensive income (loss) 77 (14 ) (16 ) 30 77 Balance at June 30, 2019 $ (1,426 ) $ 17 $ (105 ) $ 15 $ (1,499 ) The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations was as follows: Three Months Ended June 30 (Millions of dollars) Classification of income (expense) 2020 2019 Foreign currency translation Gain (loss) on foreign currency translation Other income (expense) $ 2 $ — Reclassifications net of tax $ 2 $ — Pension and other postretirement benefits: Amortization of prior service credit (cost) Other income (expense) $ 10 $ 10 Tax (provision) benefit (3 ) (3 ) Reclassifications net of tax $ 7 $ 7 Derivative financial instruments: Foreign exchange contracts Sales of Machinery, Energy & Transportation $ 11 $ — Foreign exchange contracts Cost of goods sold (32 ) (1 ) Foreign exchange contracts Other income (expense) (43 ) (4 ) Foreign exchange contracts Interest expense of Financial Products 9 7 Interest rate contracts Interest expense excluding Financial Products (1 ) — Interest rate contracts Interest expense of Financial Products (19 ) — Reclassifications before tax (75 ) 2 Tax (provision) benefit 17 (1 ) Reclassifications net of tax $ (58 ) $ 1 Available-for-sale securities: Realized gain (loss) Other income (expense) $ — $ 1 Reclassifications net of tax $ — $ 1 Total reclassifications from Accumulated other comprehensive income (loss) $ (49 ) $ 9 Six Months Ended June 30 (Millions of dollars) Classification of income (expense) 2020 2019 Foreign currency translation Gain (loss) on foreign currency translation Other income (expense) $ (22 ) $ — Reclassifications net of tax $ (22 ) $ — Pension and other postretirement benefits: Amortization of prior service credit (cost) Other income (expense) $ 19 $ 20 Tax (provision) benefit (5 ) (6 ) Reclassifications net of tax $ 14 $ 14 Derivative financial instruments: Foreign exchange contracts Sales of Machinery, Energy & Transportation $ 16 $ 1 Foreign exchange contracts Cost of goods sold (43 ) (4 ) Foreign exchange contracts Other income (expense) 28 2 Foreign exchange contracts Interest expense of Financial Products 20 14 Interest rate contracts Interest expense excluding Financial Products (2 ) (1 ) Interest rate contracts Interest expense of Financial Products (24 ) 1 Reclassifications before tax (5 ) 13 Tax (provision) benefit 2 (3 ) Reclassifications net of tax $ (3 ) $ 10 Total reclassifications from Accumulated other comprehensive income (loss) $ (11 ) $ 24

Environmental and legal matters

Environmental and legal matters	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Environmental and legal matters	Environmental and legal matters The Company is regulated by federal, state and international environmental laws governing its 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, we accrue the investigation, remediation, and operating and maintenance costs against our earnings. We accrue costs 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 requested 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. In addition, we are involved in other unresolved legal actions that arise in the normal course of business. The most prevalent of these unresolved actions involve disputes related to product design, manufacture and performance liability (including claimed asbestos exposure), contracts, employment issues, environmental matters, intellectual property rights, taxes (other than income taxes) and securities laws. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal actions is not material. In some cases, we cannot reasonably estimate a range of loss because there is insufficient information regarding the matter. However, we believe there is no more than a remote chance that any liability arising from these matters would be material. Although it is not possible to predict with certainty the outcome of these unresolved legal actions, we believe that these actions will not individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes The provision for income taxes for the first six months of 2020 reflected an estimated annual tax rate of 31 percent , compared with 26 percent for the first six months of 2019 , excluding the discrete items discussed in the following paragraph. The increase in the estimated annual tax rate was primarily related to changes in the expected geographic mix of profits from a tax perspective for 2020, including the impact of U.S. tax on non-U.S. earnings as a result of U.S. tax reform. In the first six months of 2020, we recorded a $22 million tax charge related to the $132 million of remeasurement net gain resulting from the settlements of pension obligations. We excluded this gain and related tax from the estimated annual tax rate as the future period remeasurement impacts cannot currently be estimated. In addition, we recorded a discrete tax benefit of $8 million in the first six months of 2020, compared with $26 million in the first six months of 2019, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. During the first six months of 2019, we recorded a $178 million discrete tax benefit 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. On January 31, 2018, we received a Revenue Agent’s Report from the Internal Revenue Service (IRS) indicating the end of the field examination of our U.S. income tax returns for 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.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2020
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 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; motor graders; pipelayers; road reclaimers; 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, 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, select work tools, machinery components, electronics and control systems, and related parts. In addition to equipment, Resource Industries also develops and sells technology products and services to provide customers fleet management, equipment management analytics and autonomous machine capabilities. Resource Industries also manages areas that provide services to other parts of the company, including integrated manufacturing and research and development. Inter-segment sales are a source of revenue for this segment. Energy & Transportation : A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related parts across industries serving 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. The product portfolio includes 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; and reciprocating engines supplied to the industrial industry as well as Cat machinery. Responsibilities also include 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 Caterpillar equipment. The segment also earns revenues from ME&T, but the related costs are not allocated to operating segments. Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items. 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; brand management and marketing strategy; 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 2020, we revised how we allocate certain assets between segments. We have recast all prior period amounts to align with the current methodology. We generally manage at the corporate level liabilities other than accounts payable and customer advances, and we do not include these in segment operations. Financial Products Segment assets generally include all categories of assets. • We value segment inventories and cost of sales using a current cost methodology. • We amortize goodwill allocated to segments using a fixed amount based on a 20 -year useful life. This methodology difference only impacts segment assets; We do not include goodwill amortization expense in segment profit. In addition, we have allocated to segments only a portion of goodwill for certain acquisitions made in 2011 or later. • We generally manage currency exposures for ME&T at the corporate level and do not include in segment profit the effects of changes in exchange rates on results of operations within the year. We report 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 as a methodology difference. • We do not include stock-based compensation expense 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. • We determine ME&T segment profit on a pretax basis and exclude interest expense and most other income/expense items. We determine Financial Products Segment profit on a pretax basis and include other income/expense items. Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 36 to 39 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. Only certain restructuring costs are excluded from segment profit. See Note 20 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, we report certain costs on the cash basis for segment reporting and the accrual basis for consolidated external reporting. For the three and six months ended June 30, 2020 and 2019 , 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 Intersegment Sales and Revenues Total Sales and Revenues Three Months Ended June 30, 2020 Construction Industries $ 1,604 $ 212 $ 933 $ 1,283 $ 4,032 $ 16 $ 4,048 Resource Industries 507 270 379 554 1,710 116 1,826 Energy & Transportation 1,816 197 929 599 3,541 608 4,149 Financial Products Segment 493 60 96 114 763 1 — 763 Total sales and revenues from reportable segments 4,420 739 2,337 2,550 10,046 740 10,786 All Other operating segment 7 1 5 15 28 87 115 Corporate Items and Eliminations (41 ) (10 ) (9 ) (17 ) (77 ) (827 ) (904 ) Total Sales and Revenues $ 4,386 $ 730 $ 2,333 $ 2,548 $ 9,997 $ — $ 9,997 Three Months Ended June 30, 2019 Construction Industries $ 3,513 $ 392 $ 1,108 $ 1,433 $ 6,446 $ 21 $ 6,467 Resource Industries 1,058 448 446 759 2,711 108 2,819 Energy & Transportation 2,297 325 1,160 742 4,524 962 5,486 Financial Products Segment 563 76 102 132 873 1 — 873 Total sales and revenues from reportable segments 7,431 1,241 2,816 3,066 14,554 1,091 15,645 All Other operating segment 14 1 4 15 34 91 125 Corporate Items and Eliminations (111 ) (13 ) (14 ) (18 ) (156 ) (1,182 ) (1,338 ) Total Sales and Revenues $ 7,334 $ 1,229 $ 2,806 $ 3,063 $ 14,432 $ — $ 14,432 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $88 million and $136 million in the three months ended June 30, 2020 and 2019, respectively. Sales and Revenues by Geographic Region (Millions of dollars) North America Latin America EAME Asia/ Pacific External Sales and Revenues Intersegment Sales and Revenues Total Sales and Revenues Six Months Ended June 30, 2020 Construction Industries $ 3,689 $ 477 $ 1,822 $ 2,356 $ 8,344 $ 10 $ 8,354 Resource Industries 1,203 590 774 1,122 3,689 221 3,910 Energy & Transportation 3,554 446 1,982 1,177 7,159 1,339 8,498 Financial Products Segment 1,018 130 198 231 1,577 1 — 1,577 Total sales and revenues from reportable segments 9,464 1,643 4,776 4,886 20,769 1,570 22,339 All Other operating segment 12 3 16 25 56 168 224 Corporate Items and Eliminations (110 ) (24 ) (22 ) (37 ) (193 ) (1,738 ) (1,931 ) Total Sales and Revenues $ 9,366 $ 1,622 $ 4,770 $ 4,874 $ 20,632 $ — $ 20,632 Six Months Ended June 30, 2019 Construction Industries $ 6,478 $ 711 $ 2,114 $ 2,995 $ 12,298 $ 42 $ 12,340 Resource Industries 2,009 871 914 1,564 5,358 213 5,571 Energy & Transportation 4,448 657 2,192 1,460 8,757 1,939 10,696 Financial Products Segment 1,121 146 204 252 1,723 1 — 1,723 Total sales and revenues from reportable segments 14,056 2,385 5,424 6,271 28,136 2,194 30,330 All Other operating segment 22 1 15 33 71 175 246 Corporate Items and Eliminations (221 ) (23 ) (26 ) (39 ) (309 ) (2,369 ) (2,678 ) Total Sales and Revenues $ 13,857 $ 2,363 $ 5,413 $ 6,265 $ 27,898 $ — $ 27,898 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $193 million and $267 million in the six months ended June 30, 2020 and 2019, respectively. For the three and six months ended June 30, 2020 and 2019 , Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales Three Months Ended June 30 (Millions of dollars) 2020 2019 Oil and gas $ 1,027 $ 1,305 Power generation 895 1,021 Industrial 678 957 Transportation 941 1,241 Energy & Transportation External Sales $ 3,541 $ 4,524 Six Months Ended June 30 2020 2019 Oil and gas $ 1,888 $ 2,436 Power generation 1,749 2,057 Industrial 1,479 1,861 Transportation 2,043 2,403 Energy & Transportation External Sales $ 7,159 $ 8,757 Reconciliation of Consolidated profit before taxes: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Profit from reportable segments: Construction Industries $ 518 $ 1,247 $ 1,158 $ 2,332 Resource Industries 152 481 456 1,057 Energy & Transportation 624 886 1,226 1,724 Financial Products Segment 148 193 253 404 Total profit from reportable segments 1,442 2,807 3,093 5,517 Profit from All Other operating segment (3 ) 11 4 36 Cost centers (23 ) 17 9 41 Corporate costs (120 ) (149 ) (287 ) (325 ) Timing (24 ) (58 ) (51 ) (124 ) Restructuring costs (96 ) (103 ) (124 ) (142 ) Methodology differences: Inventory/cost of sales (38 ) (8 ) (18 ) (1 ) Postretirement benefit expense (118 ) 2 285 (15 ) Stock-based compensation expense (67 ) (68 ) (114 ) (113 ) Financing costs (119 ) (51 ) (199 ) (115 ) Currency (60 ) (92 ) (208 ) (48 ) Other income/expense methodology differences (80 ) (121 ) (172 ) (250 ) Other methodology differences (16 ) (9 ) (27 ) (19 ) Total consolidated profit before taxes $ 678 $ 2,178 $ 2,191 $ 4,442 Reconciliation of Assets: (Millions of dollars) June 30, 2020 December 31, 2019 Assets from reportable segments: Construction Industries $ 4,581 $ 4,601 Resource Industries 6,281 6,505 Energy & Transportation 8,943 8,548 Financial Products Segment 34,270 35,813 Total assets from reportable segments 54,075 55,467 Assets from All Other operating segment 1,620 1,728 Items not included in segment assets: Cash and short-term investments 8,030 7,299 Deferred income taxes 1,353 1,294 Goodwill and intangible assets 4,597 4,435 Property, plant and equipment – net and other assets 2,460 2,529 Inventory methodology differences (2,625 ) (2,426 ) Liabilities included in segment assets 7,701 8,541 Other (645 ) (414 ) Total assets $ 76,566 $ 78,453 Reconciliation of Depreciation and amortization: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Depreciation and amortization from reportable segments: Construction Industries $ 61 $ 74 $ 122 $ 147 Resource Industries 104 112 207 224 Energy & Transportation 149 155 295 307 Financial Products Segment 198 207 403 413 Total depreciation and amortization from reportable segments 512 548 1,027 1,091 Items not included in segment depreciation and amortization: All Other operating segment 63 53 125 105 Cost centers 32 33 65 65 Other 1 13 5 27 Total depreciation and amortization $ 608 $ 647 $ 1,222 $ 1,288 Reconciliation of Capital expenditures: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Capital expenditures from reportable segments: Construction Industries $ 28 $ 41 $ 48 $ 69 Resource Industries 36 37 53 60 Energy & Transportation 144 118 231 216 Financial Products Segment 256 459 503 705 Total capital expenditures from reportable segments 464 655 835 1,050 Items not included in segment capital expenditures: All Other operating segment 23 22 38 35 Cost centers 6 29 15 49 Timing (14 ) (5 ) 146 129 Other (29 ) (23 ) (36 ) (38 ) Total capital expenditures $ 450 $ 678 $ 998 $ 1,225

Cat Financial Financing Activit

Cat Financial Financing Activities	6 Months Ended
	Jun. 30, 2020
Receivables [Abstract]
Cat Financial Financing Activities	Cat Financial financing activities Effective January 1, 2020, we implemented the new credit loss guidance using a modified retrospective approach. Prior period comparative information has not been recast and continues to be reported under the accounting guidance in effect for those periods. See Note 2 for additional information. Allowance for credit losses Portfolio segments A portfolio segment is the level at which Cat Financial develops a systematic methodology for determining its allowance for credit losses. Cat Financial's portfolio segments and related methods for estimating expected credit losses are as follows: Customer Cat Financial provides loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use, the majority of which operate in construction-related industries. Cat Financial also provides financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. The average original term of Cat Financial's customer finance receivable portfolio was approximately 48 months with an average remaining term of approximately 23 months as of June 30, 2020 . Cat Financial typically maintains a security interest in financed equipment and requires physical damage insurance coverage on the financed equipment, both of which provide Cat Financial with certain rights and protections. If Cat Financial's collection efforts fail to bring a defaulted account current, Cat Financial generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third party auctions. Cat Financial estimates the allowance for credit losses related to its customer finance receivables based on loss forecast models utilizing probabilities of default and the estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific macro-economic factors. As of June 30, 2020 , Cat Financial's forecasts for the markets in which it operates continued to reflect a decline in economic conditions resulting from a contracting economy, elevated unemployment rates and an increase in the level and trend of delinquencies due to the COVID-19 pandemic. The company believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long term trends. Dealer Cat Financial provides financing to Caterpillar dealers in the form of wholesale financing plans. Cat Financial's wholesale financing plans provide assistance to dealers by financing their new Caterpillar equipment inventory and rental fleets and are generally secured by the financed equipment. In addition, Cat Financial provides unsecured loans to Caterpillar dealers for working capital. Cat Financial estimates the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts. Although forecasts continued to indicate a decline in economic conditions, Cat Financial's Dealer portfolio segment has not historically experienced increased credit losses during prior economic downturns due to its close working relationships with the dealers and their financial strength. Therefore, no adjustments to historical loss rates were made during the three and six months ended June 30, 2020 . Classes of finance receivables 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, the 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. Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). The amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. An analysis of the allowance for credit losses was as follows: (Millions of dollars) June 30, 2020 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 375 $ 45 $ 420 Adjustment to adopt new accounting guidance 1 12 — 12 Receivables written off (73 ) — (73 ) Recoveries on receivables previously written off 13 — 13 Provision for credit losses 146 — 146 Other (6 ) — (6 ) Balance at end of period $ 467 $ 45 $ 512 Individually evaluated $ 184 $ 39 $ 223 Collectively evaluated 283 6 289 Ending Balance $ 467 $ 45 $ 512 Finance Receivables: Individually evaluated $ 601 $ 78 $ 679 Collectively evaluated 17,869 3,305 21,174 Ending Balance $ 18,470 $ 3,383 $ 21,853 1 See Note 2 regarding new accounting guidance related to credit losses. (Millions of dollars) December 31, 2019 Allowance for Credit Losses: Customer Dealer Total 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 $ 178 $ 39 $ 217 Collectively evaluated 197 6 203 Ending Balance $ 375 $ 45 $ 420 Finance Receivables: Individually evaluated $ 594 $ 78 $ 672 Collectively evaluated 18,093 3,632 21,725 Ending Balance $ 18,687 $ 3,710 $ 22,397 Credit quality of finance receivables At origination, Cat Financial evaluates credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios, probabilities of default, industry trends, macroeconomic factors and other internal metrics. On an ongoing basis, Cat Financial monitors credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, Cat Financial considers the entire finance receivable past due when any installment is over 30 days past due. Customer The table below summarizes the aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year: (Millions of dollars) June 30, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Finance Receivables North America Current $ 1,854 $ 3,032 $ 1,831 $ 814 $ 374 $ 97 $ 102 $ 8,104 31-60 days past due 13 28 20 15 5 2 — 83 61-90 days past due 4 15 14 8 3 1 — 45 91+ days past due 3 24 31 19 15 6 — 98 EAME Current 545 1,104 727 336 113 33 — 2,858 31-60 days past due 5 13 12 5 2 — — 37 61-90 days past due 6 7 2 2 — — — 17 91+ days past due — 11 14 15 51 62 — 153 Asia/Pacific Current 696 941 502 126 17 7 — 2,289 31-60 days past due 4 22 18 5 — — — 49 61-90 days past due 2 11 8 3 — — — 24 91+ days past due 1 19 18 5 1 — — 44 Mining Current 198 655 375 207 124 188 270 2,017 31-60 days past due — — 13 5 — — — 18 61-90 days past due — 1 3 — — — — 4 91+ days past due — 12 3 25 — — 1 41 Latin America Current 286 440 214 74 22 27 — 1,063 31-60 days past due 2 6 8 1 1 1 — 19 61-90 days past due — 3 9 5 1 — — 18 91+ days past due — 19 40 29 8 6 — 102 Caterpillar Power Finance Current 106 250 172 278 99 143 134 1,182 31-60 days past due — — 2 — — — — 2 61-90 days past due — — — — — 2 — 2 91+ days past due — — 20 13 33 135 — 201 Total Customer $ 3,725 $ 6,613 $ 4,056 $ 1,990 $ 869 $ 710 $ 507 $ 18,470 Finance receivables in the Customer portfolio segment are substantially secured by collateral, primarily in the form of Caterpillar and other machinery. For those contracts where the borrower is experiencing financial difficulty, repayment of the outstanding amounts is generally expected to be provided through the operation or repossession and sale of the machinery. Dealer As of June 30, 2020 , Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $78 million that was 91+ days past due in Latin America. These past due receivables were originated in 2017. The table below summarizes Cat Financial's recorded investment in finance receivables by aging category. December 31, 2019 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables Customer North America $ 72 $ 23 $ 55 $ 150 $ 8,002 $ 8,152 EAME 30 31 141 202 2,882 3,084 Asia Pacific 40 14 29 83 2,181 2,264 Mining 5 — 19 24 2,266 2,290 Latin America 41 23 80 144 1,089 1,233 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 Impaired finance receivables 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 restructures. In Cat Financial’s Customer portfolio segment, impaired finance receivables and the related unpaid principal balances and allowance were as follows: December 31, 2019 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Impaired Finance Receivables With No Allowance Recorded North America $ 6 $ 6 $ — EAME — — — Asia Pacific — — — Mining 22 22 — Latin America 8 8 — Caterpillar Power Finance 58 58 — Total $ 94 $ 94 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 30 $ 30 $ 11 EAME 61 61 29 Asia Pacific 8 8 2 Mining 37 36 9 Latin America 58 58 20 Caterpillar Power Finance 306 319 107 Total $ 500 $ 512 $ 178 Total Impaired Finance Receivables North America $ 36 $ 36 $ 11 EAME 61 61 29 Asia Pacific 8 8 2 Mining 59 58 9 Latin America 66 66 20 Caterpillar Power Finance 364 377 107 Total $ 594 $ 606 $ 178 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Finance Receivables With No Allowance Recorded North America $ 10 $ — $ 10 $ — EAME 1 — 1 — Asia Pacific — — — — Mining 29 1 30 1 Latin America 20 1 23 1 Caterpillar Power Finance 41 — 51 1 Total $ 101 $ 2 $ 115 $ 3 Impaired Finance Receivables With An Allowance Recorded North America $ 35 $ — $ 37 $ 1 EAME 94 — 94 1 Asia Pacific 9 — 8 — Mining 39 — 42 1 Latin America 74 2 75 3 Caterpillar Power Finance 443 4 446 7 Total $ 694 $ 6 $ 702 $ 13 Total Impaired Finance Receivables North America $ 45 $ — $ 47 $ 1 EAME 95 — 95 1 Asia Pacific 9 — 8 — Mining 68 1 72 2 Latin America 94 3 98 4 Caterpillar Power Finance 484 4 497 8 Total $ 795 $ 8 $ 817 $ 16 There were $78 million in impaired finance receivables with a related allowance of $39 million as of December 31, 2019 for the Dealer portfolio segment, all of which was in Latin America. Non-accrual finance receivables 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. Contracts on non-accrual status are generally more than 120 days past due or have been restructured in a troubled debt restructuring (TDR). 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. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible. In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows: June 30, 2020 Amortized Cost (Millions of dollars) Non-accrual Non-accrual 91+ Still North America $ 78 $ 1 $ 30 EAME 168 — 5 Asia Pacific 32 — 12 Mining 43 — — Latin America 106 3 2 Caterpillar Power Finance 302 21 — Total $ 729 $ 25 $ 49 There was $1 million and $5 million of interest income recognized during the three and six months ended June 30, 2020 for customer finance receivables on non-accrual status. (Millions of dollars) December 31, 2019 Recorded Investment Non-accrual Finance Receivables 91+ Still Accruing North America $ 44 $ 15 EAME 165 4 Asia Pacific 21 8 Mining 47 — Latin America 89 2 Caterpillar Power Finance 361 — Total $ 727 $ 29 As of June 30, 2020 and December 31, 2019, there were $78 million in finance receivables on non-accrual status in Cat Financial's Dealer portfolio segment, all of which was in Latin America. There were no finance receivables in Cat Financial's Dealer portfolio segment more than 90 days past due and still accruing income as of June 30, 2020 and no interest income was recognized on dealer finance receivables on non-accrual status during the three and six months ended June 30, 2020 . Troubled debt restructurings A restructuring of a finance receivable constitutes a 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, payment deferrals and reduction of principal and/or accrued interest. There were no finance receivables modified as TDRs during the three and six months ended June 30, 2020 and 2019 for the Dealer portfolio segment. Cat Financial’s finance receivables in the Customer portfolio segment modified as TDRs were as follows: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (Dollars in millions) Number of Contracts Pre-TDR Amortized Cost Post-TDR Amortized Cost Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 10 $ 9 $ 9 8 $ 5 $ 4 EAME — — — 2 10 10 Asia Pacific (1) 104 8 8 — — — Mining (2) 40 17 17 1 6 6 Latin America 1 — — 4 2 2 Caterpillar Power Finance 6 37 37 7 47 47 Total 161 $ 71 $ 71 22 $ 70 $ 69 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Number of Contracts Pre-TDR Post-TDR Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 10 $ 9 $ 9 8 $ 5 $ 4 EAME — — — 19 17 17 Asia Pacific 104 8 8 — — — Mining 40 17 17 1 6 6 Latin America 6 2 2 4 2 2 Caterpillar Power Finance 6 37 37 15 98 97 Total 166 $ 73 $ 73 47 $ 128 $ 126 (1) In Asia/Pacific, during the three months ended June 30, 2020, 104 contracts with a pre-TDR amortized cost of $8 million and a post-TDR amortized cost of $8 million were related to four customers. (2) In Mining, during the three months ended June 30, 2020, 40 contracts with a pre-TDR amortized cost of $17 million and a post-TDR amortized cost of $17 million were related to two customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (Dollars in millions) Number of Contracts Post-TDR Amortized Cost Number of Contracts Post-TDR Recorded Investment North America 1 $ — — $ — Total 1 $ — — $ — Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Number of Contracts Post-TDR Number of Contracts Post-TDR Recorded Investment North America 1 $ — — $ — EAME 2 10 — — Latin America 3 1 — — Total 6 $ 11 — $ —

Fair Value Disclosures

Fair Value Disclosures	6 Months Ended
	Jun. 30, 2020
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. We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation. We may therefore classify a measurement 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 8 for additional information on our investments in debt and equity securities. Derivative financial instruments The fair value of interest rate contracts is primarily based on models that utilize the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency and commodity forward, option and cross currency contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate. Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 (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 — 51 — — 51 Corporate bonds Corporate bonds — 955 — — 955 Asset-backed securities — 143 — — 143 Mortgage-backed debt securities U.S. governmental agency — 381 — — 381 Residential — 6 — — 6 Commercial — 65 — — 65 Total debt securities 9 1,601 — — 1,610 Equity securities Large capitalization value 163 — — — 163 Smaller company growth 30 — 2 — 32 REIT — — — 139 139 Total equity securities 193 — 2 139 334 Derivative financial instruments, net — 48 — — 48 Total assets $ 202 $ 1,649 $ 2 $ 139 $ 1,992 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 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 $304 million and $343 million as of June 30, 2020 and December 31, 2019 , 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 use the following methods and assumptions to estimate the fair value of our financial instruments: Cash and short-term investments Carrying amount approximates fair value. Restricted cash and short-term investments Carrying amount approximates fair value. We include restricted cash and short-term investments in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. Finance receivables We estimate fair value by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Wholesale inventory receivables We estimate fair value by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Short-term borrowings Carrying amount approximates fair value. Long-term debt We estimate fair value for fixed and floating rate debt 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: Fair Value of Financial Instruments June 30, 2020 December 31, 2019 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 8,784 $ 8,784 $ 8,284 $ 8,284 1 Restricted cash and short-term investments 7 7 8 8 1 Investments in debt and equity securities 1,944 1,944 1,711 1,711 1, 2 & 3 Note 8 Finance receivables – net (excluding finance leases 1 ) 14,029 14,389 14,473 14,613 3 Note 17 Wholesale inventory receivables – net (excluding finance leases 1 ) 1,196 1,175 1,105 1,076 3 Foreign currency contracts – net 12 12 62 62 2 Note 5 Interest rate contracts – net 42 42 — — 2 Note 5 Commodity contracts – net — — 3 3 2 Note 5 Liabilities Short-term borrowings 4,314 4,314 5,166 5,166 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 11,124 13,978 9,157 11,216 2 Financial Products 23,184 23,856 23,334 23,655 2 Interest rate contracts – net — — 20 20 2 Note 5 Commodity contracts – net 6 6 — — 2 Note 5 Guarantees 5 5 5 5 3 Note 11 1 Represents finance leases and failed sales leasebacks of $7,588 million and $7,800 million at June 30, 2020 and December 31, 2019 , respectively.

Other Income (expense)

Other Income (expense)	6 Months Ended
	Jun. 30, 2020
Other Income (expense) [Abstract]
Other income (expense)	Other income (expense) Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2020 2019 2020 2019 Investment and interest income $ 27 $ 54 $ 70 $ 106 Foreign exchange gains (losses) 1 (4 ) (47 ) (79 ) (29 ) License fee income 23 31 48 56 Net periodic pension and OPEB income (cost), excluding service cost 2 (63 ) 24 270 50 Gains (losses) on sale of securities and affiliated companies 37 14 (21 ) 53 Miscellaneous income (loss) 9 (8 ) (37 ) (8 ) Total $ 29 $ 68 $ 251 $ 228 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 5 for further details. 2 Includes remeasurement losses of $(122) million and a remeasurement net gain of $132 million for the three and six months ended June 30, 2020, respectively, from the settlements of certain pension obligations. See Note 9 for further details.

Restructuring Costs

Restructuring Costs	6 Months Ended
	Jun. 30, 2020
Restructuring Charges [Abstract]
Restructuring Costs	Restructuring costs Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, we recognize eligible separation costs at the time of employee acceptance unless the acceptance requires explicit approval by the company. For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable. Restructuring costs for the three and six months ended June 30, 2020 and 2019 were as follows: (Millions of dollars) Three Months Ended June 30 2020 2019 Employee separations 1 $ 123 $ 10 Contract terminations 1 2 — Long-lived asset impairments 1 14 29 Other 2 8 71 Total restructuring costs $ 147 $ 110 Six Months Ended June 30 2020 2019 Employee separations 1 $ 134 $ 25 Contract terminations 1 3 — Long-lived asset impairments 1 23 36 Other 2 24 97 Total restructuring costs $ 184 $ 158 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for inventory write-downs, equipment relocation, project management and building demolition, all of which are primarily included in Cost of goods sold. For the six months ended June 30, 2020 , the restructuring costs were primarily related to various voluntary and involuntary employee separation programs implemented across the company and a strategic action to address a certain product line, which were partially offset by a gain on the sale of a manufacturing facility that had been closed. For the six months ended June 30, 2019 , the restructuring costs were primarily related to restructuring actions in Construction Industries and Energy & Transportation. The following table summarizes the 2019 and 2020 employee separation activity: (Millions of dollars) 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 Increase in liability (separation charges) 134 Reduction in liability (payments) (95 ) Liability balance at June 30, 2020 $ 87 Most of the liability balance at June 30, 2020

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Policies)	6 Months Ended
	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Risk Management Policy	Foreign Currency Exchange Rate Risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our 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 five years . As of June 30, 2020 , 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, Euro, 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. We perform designation on a specific exposure basis to support hedge accounting. The remainder of ME&T foreign currency contracts are undesignated. As of June 30, 2020 , $50 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in current earnings 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. 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. We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the original term of the previously designated hedged item. Commodity Price Risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw 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)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of type and fair value of the stock-based compensation awards granted during the period	The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2020 and 2019 , respectively: Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Stock options 1,913,888 $ 25.98 $ 127.60 1,499,524 $ 40.98 $ 138.35 RSUs 705,287 $ 127.60 $ 127.60 657,389 $ 138.35 $ 138.35 PRSUs 371,641 $ 127.60 $ 127.60 342,097 $ 138.35 $ 138.35
Schedule providing assumptions used in determining the fair value of stock-based awards	The following table provides the assumptions used in determining the fair value of the stock-based awards for the six months ended June 30, 2020 and 2019 , respectively: Grant Year 2020 2019 Weighted-average dividend yield 2.47% 2.56% Weighted-average volatility 25.7% 29.1% Range of volatilities 24.5-29.7% 25.1-38.7% Range of risk-free interest rates 1.21-1.39% 2.48-2.68% Weighted-average expected lives 8 years 7 years

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Tables)	6 Months Ended
	Jun. 30, 2020
Derivative
Location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position	The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position were as follows: (Millions of dollars) Consolidated Statement of Financial Asset (Liability) Fair Value Position Location June 30, 2020 December 31, 2019 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 15 $ 18 Machinery, Energy & Transportation Long-term receivables – trade and other 11 9 Machinery, Energy & Transportation Accrued expenses (81 ) (20 ) Machinery, Energy & Transportation Other liabilities (36 ) — Financial Products Receivables – trade and other 53 54 Financial Products Long-term receivables – trade and other 4 13 Financial Products Accrued expenses (3 ) (3 ) Interest rate contracts Machinery, Energy & Transportation Other liabilities (1 ) — Financial Products Receivables – trade and other 4 — Financial Products Long-term receivables – trade and other 65 5 Financial Products Accrued expenses (26 ) (25 ) $ 5 $ 51 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 2 $ 1 Machinery, Energy & Transportation Accrued expenses (2 ) — Financial Products Receivables – trade and other 49 7 Financial Products Long-term receivables – trade and other 12 5 Financial Products Accrued expenses (12 ) (22 ) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 6 4 Machinery, Energy & Transportation Long-term receivables – trade and other 1 — Machinery, Energy & Transportation Accrued expenses (13 ) (1 ) $ 43 $ (6 )
Total notional amounts of derivative instruments	The total notional amounts of the derivative instruments were as follows: (Millions of dollars) June 30, 2020 December 31, 2019 Machinery, Energy & Transportation $ 3,598 $ 2,563 Financial Products $ 11,454 $ 8,931
Effect of derivatives designated as hedging instruments on Consolidated Statement of Results of Operations	The effect of derivatives designated as hedging instruments on the Consolidated Statement of Results of Operations was as follows: Cash Flow Hedges Three Months Ended June 30, 2020 Recognized in Earnings (Millions of dollars) Amount of Gains (Losses) Recognized in AOCI Classification of Amount of Gains Amount of the line items in the Consolidated Statement of Results of Operations Foreign exchange contracts Machinery, Energy & Transportation $ (34 ) Sales of Machinery, Energy & Transportation $ 11 $ 9,310 Cost of goods sold (32 ) 7,113 Financial Products (35 ) Interest expense of Financial Products 9 149 Other income (expense) (43 ) 29 Interest rate contracts Machinery, Energy & Transportation (12 ) Interest expense excluding Financial Products (1 ) 135 Financial Products (9 ) Interest expense of Financial Products (19 ) 149 $ (90 ) $ (75 ) Three Months Ended June 30, 2019 Recognized in Earnings Amount of Gains Classification of Amount of Gains Amount of the line items in the Consolidated Statement of Results of Operations Foreign exchange contracts Machinery, Energy & Transportation $ 4 Cost of goods sold $ (1 ) $ 9,941 Financial Products 10 Interest expense of Financial Products 7 192 Other income (expense) (4 ) 68 Interest rate contracts Financial Products (34 ) Interest expense of Financial Products — 192 $ (20 ) $ 2 Cash Flow Hedges Six Months Ended June 30, 2020 Recognized in Earnings (Millions of dollars) Amount of Gains (Losses) Recognized in AOCI Classification of Amount of Gains Amount of the line items in the Consolidated Statement of Results of Operations Foreign exchange contracts Machinery, Energy & Transportation $ (124 ) Sales of Machinery, Energy & Transportation $ 16 $ 19,224 Cost of goods sold (43 ) 14,379 Financial Products 66 Interest expense of Financial Products 20 324 Other income (expense) 28 251 Interest rate contracts Machinery, Energy & Transportation (16 ) Interest expense excluding Financial Products (2 ) 248 Financial Products (24 ) Interest expense of Financial Products (24 ) 324 $ (98 ) $ (5 ) Six Months Ended June 30, 2019 Recognized in Earnings Amount of Gains Classification of Amount of Gains Amount of the line items in the Consolidated Statement of Results of Operations Foreign exchange contracts Machinery, Energy & Transportation $ 21 Sales of Machinery, Energy & Transportation $ 1 $ 26,395 Cost of goods sold (4 ) 18,944 Financial Products 32 Interest expense of Financial Products 14 382 Other income (expense) 2 228 Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1 ) 206 Financial Products (60 ) Interest expense of Financial Products 1 382 $ (7 ) $ 13
Effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations	The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations was as follows: (Millions of dollars) Classification of Gains (Losses) Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 16 $ 7 Financial Products Other income (expense) (23 ) (10 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) 15 (7 ) $ 8 $ (10 ) Classification of Gains (Losses) Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 13 $ 13 Financial Products Other income (expense) 85 (39 ) Commodity contracts Machinery, Energy & Transportation Other income (expense) (31 ) 16 $ 67 $ (10 )
Effect of net settlement provisions of the master netting agreements on derivative assets	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 The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event was as follows: June 30, 2020 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 $ 35 $ — $ 35 $ (34 ) $ — $ 1 Financial Products 187 — 187 (33 ) — 154 Total $ 222 $ — $ 222 $ (67 ) $ — $ 155
Effect of net settlement provisions of the master netting agreements on derivative liabilities	June 30, 2020 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 $ (133 ) $ — $ (133 ) $ 34 $ — $ (99 ) Financial Products (41 ) — (41 ) 33 — (8 ) Total $ (174 ) $ — $ (174 ) $ 67 $ — $ (107 ) 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 )

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories (principally using the last-in, first-out (LIFO) method) were comprised of the following: (Millions of dollars) June 30, December 31, Raw materials $ 4,193 $ 4,263 Work-in-process 1,076 1,147 Finished goods 5,839 5,598 Supplies 263 258 Total inventories $ 11,371 $ 11,266

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets were comprised of the following: June 30, 2020 (Millions of dollars) Weighted Amortizable Life (Years) Gross Carrying Amount Accumulated Amortization Net Customer relationships 15 $ 2,421 $ (1,472 ) $ 949 Intellectual property 12 1,504 (1,088 ) 416 Other 13 180 (125 ) 55 Total finite-lived intangible assets 14 $ 4,105 $ (2,685 ) $ 1,420 December 31, 2019 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
Expected amortization expense related to intangible assets	Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Six Months of 2020 2021 2022 2023 2024 Thereafter $151 $291 $274 $217 $159 $328
Goodwill acquired	The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2020 were as follows: (Millions of dollars) December 31, Other Adjustments 1 June 30, Construction Industries Goodwill $ 306 $ 1 $ 307 Impairments (22 ) — (22 ) Net goodwill 284 1 285 Resource Industries Goodwill 4,156 (4 ) 4,152 Impairments (1,175 ) — (1,175 ) Net goodwill 2,981 (4 ) 2,977 Energy & Transportation Goodwill 2,875 (2 ) 2,873 All Other 2 Goodwill 56 1 57 Consolidated total Goodwill 7,393 (4 ) 7,389 Impairments (1,197 ) — (1,197 ) Net goodwill $ 6,196 $ (4 ) $ 6,192 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segment (See Note 16).

Investments in Debt and Equit_2

Investments in Debt and Equity Securities (Tables)	6 Months Ended
	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Cost basis and fair value 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 the Consolidated Statement of Financial Position) were as follows: June 30, 2020 December 31, 2019 (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 50 1 51 54 — 54 Corporate bonds Corporate bonds 917 38 955 836 20 856 Asset-backed securities 142 1 143 62 — 62 Mortgage-backed debt securities U.S. governmental agency 369 12 381 327 4 331 Residential 6 — 6 6 — 6 Commercial 62 3 65 46 1 47 Total debt securities $ 1,555 $ 55 $ 1,610 $ 1,340 $ 25 $ 1,365
Investments in an unrealized loss position that are not other-than-temporarily impaired:	Available-for-sale investments in an unrealized loss position: June 30, 2020 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds Corporate bonds $ 95 $ 4 $ 43 $ 1 $ 138 $ 5 Asset-backed securities 53 1 2 — 55 1 Total $ 148 $ 5 $ 45 $ 1 $ 193 $ 6 December 31, 2019 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds Corporate bonds $ 58 $ 1 $ 50 $ — $ 108 $ 1 Total $ 58 $ 1 $ 50 $ — $ 108 $ 1 1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.
Cost basis and fair value of the available-for-sale debt securities by contractual maturity	The cost basis and fair value of the available-for-sale debt securities at June 30, 2020 , by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. June 30, 2020 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 126 $ 127 Due after one year through five years 689 718 Due after five years through ten years 213 222 Due after ten years 90 91 U.S. governmental agency mortgage-backed securities 369 381 Residential mortgage-backed securities 6 6 Commercial mortgage-backed securities 62 65 Total debt securities – available-for-sale $ 1,555 $ 1,610
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities	Sales of available-for-sale securities: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2020 2019 2020 2019 Proceeds from the sale of available-for-sale securities $ 66 $ 97 $ 124 $ 144 Gross gains from the sale of available-for-sale securities 1 1 1 1 Gross losses from the sale of available-for-sale securities 1 — 1 1

Postretirement Benefits (Tables

Postretirement Benefits (Tables)	6 Months Ended
	Jun. 30, 2020
Retirement Benefits [Abstract]
Schedule of net benefit costs	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) June 30 June 30 June 30 2020 2019 2020 2019 2020 2019 For the three months ended: Components of net periodic benefit cost: Service cost $ — $ 28 $ 14 $ 20 $ 24 $ 21 Interest cost 121 150 21 24 27 34 Expected return on plan assets (198 ) (179 ) (38 ) (38 ) (3 ) (5 ) Amortization of prior service cost (credit) — — — — (10 ) (10 ) (Gain) loss on remeasurement of pension obligations 1 2 — 120 — — — Curtailments, settlements and termination benefits 1 — — 21 — — — Net periodic benefit cost (benefit) 2 $ (75 ) $ (1 ) $ 138 $ 6 $ 38 $ 40 For the six months ended: Components of net periodic benefit cost: Service cost $ — $ 57 $ 28 $ 41 $ 47 $ 41 Interest cost 242 300 40 47 53 68 Expected return on plan assets (396 ) (360 ) (73 ) (75 ) (6 ) (10 ) Amortization of prior service cost (credit) — — — — (19 ) (20 ) (Gain) loss on remeasurement of pension obligations 1 2 — (134 ) — — — Curtailments, settlements and termination benefits 1 — — 21 — — — Net periodic benefit cost (benefit) 2 $ (152 ) $ (3 ) $ (118 ) $ 13 $ 75 $ 79 1 Total lump-sum transfers out of certain pension plans exceeded the service and interest cost for 2020, which required us to follow settlement accounting and remeasure the plans' obligations as of March 31, 2020 and June 30, 2020. 2 The service cost component is included in Operating costs in the Consolidated Statement of Results of Operations. All other components are included in Other income (expense) in the Consolidated Statement of Results of Operations.
Company costs related to U.S. and non-U.S. defined contribution plans	Total company costs related to our defined contribution plans were as follows: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2020 2019 2020 2019 U.S. Plans $ 126 $ 93 $ 145 $ 230 Non-U.S. Plans 20 21 43 42 $ 146 $ 114 $ 188 $ 272 The decrease in the U.S. defined contribution benefit costs for the six months ended June 30, 2020 was primarily due to the fair value adjustments related to our non-qualified deferred compensation plans.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Revenue from sales-type and operating lease	Revenues from finance and operating leases, primarily included in Revenues of Financial Products on the Consolidated Statement of Results of Operations, were as follows: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Finance lease revenue $ 119 $ 135 $ 244 $ 254 Operating lease revenue 285 308 588 624 Total $ 404 $ 443 $ 832 $ 878

Guarantees and Product Warran_2

Guarantees and Product Warranty (Tables)	6 Months Ended
	Jun. 30, 2020
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 was as follows: (Millions of dollars) June 30, December 31, Caterpillar dealer performance guarantees $ 1,139 $ 1,150 Supplier consortium performance guarantee 241 238 Other guarantees 188 221 Total guarantees $ 1,568 $ 1,609
Product warranty	We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience. (Millions of dollars) 2020 Warranty liability, January 1 $ 1,541 Reduction in liability (payments) (436 ) Increase in liability (new warranties) 428 Warranty liability, June 30 $ 1,533 (Millions of dollars) 2019 Warranty liability, January 1 $ 1,391 Reduction in liability (payments) (903 ) Increase in liability (new warranties) 1,053 Warranty liability, December 31 $ 1,541

Profit Per Share (Tables)

Profit Per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Computations of profit per share	Computations of profit per share: Three Months Ended June 30 Six Months Ended June 30 (Dollars in millions except per share data) 2020 2019 2020 2019 Profit for the period (A) 1 $ 458 $ 1,620 $ 1,550 $ 3,501 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 541.5 567.8 544.5 569.9 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 3.0 5.3 3.7 5.9 Average common shares outstanding for fully diluted computation (C) 2 544.5 573.1 548.2 575.8 Profit per share of common stock: Assuming no dilution (A/B) $ 0.84 $ 2.85 $ 2.85 $ 6.14 Assuming full dilution (A/C) 2 $ 0.84 $ 2.83 $ 2.83 $ 6.08 Shares outstanding as of June 30 (in millions) 541.5 562.6 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)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Changes in Accumulated other comprehensive income (loss), net of tax	Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Shareholders’ Equity, consisted of the following: (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Three Months Ended June 30, 2020 Balance at March 31, 2020 $ (1,847 ) $ (10 ) $ (157 ) $ 2 $ (2,012 ) Other comprehensive income (loss) before reclassifications 177 2 (70 ) 39 148 Amounts reclassified from accumulated other comprehensive (income) loss (2 ) (7 ) 58 — 49 Other comprehensive income (loss) 175 (5 ) (12 ) 39 197 Balance at June 30, 2020 $ (1,672 ) $ (15 ) $ (169 ) $ 41 $ (1,815 ) Three Months Ended June 30, 2019 Balance at March 31, 2019 $ (1,525 ) $ 24 $ (88 ) $ 1 $ (1,588 ) Other comprehensive income (loss) before reclassifications 99 — (16 ) 15 98 Amounts reclassified from accumulated other comprehensive (income) loss — (7 ) (1 ) (1 ) (9 ) Other comprehensive income (loss) 99 (7 ) (17 ) 14 89 Balance at June 30, 2019 $ (1,426 ) $ 17 $ (105 ) $ 15 $ (1,499 ) (Millions of dollars) Foreign currency translation Pension and other postretirement benefits Derivative financial instruments Available-for-sale securities Total Six Months Ended June 30, 2020 Balance at December 31, 2019 $ (1,487 ) $ (3 ) $ (97 ) $ 20 $ (1,567 ) Other comprehensive income (loss) before reclassifications (207 ) 2 (75 ) 21 (259 ) Amounts reclassified from accumulated other comprehensive (income) loss 22 (14 ) 3 — 11 Other comprehensive income (loss) (185 ) (12 ) (72 ) 21 (248 ) Balance at June 30, 2020 $ (1,672 ) $ (15 ) $ (169 ) $ 41 $ (1,815 ) Six Months Ended June 30, 2019 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 77 — (6 ) 30 101 Amounts reclassified from accumulated other comprehensive (income) loss — (14 ) (10 ) — (24 ) Other comprehensive income (loss) 77 (14 ) (16 ) 30 77 Balance at June 30, 2019 $ (1,426 ) $ 17 $ (105 ) $ 15 $ (1,499 )
Reclassifications out of Accumulated other comprehensive income (loss)	The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations was as follows: Three Months Ended June 30 (Millions of dollars) Classification of income (expense) 2020 2019 Foreign currency translation Gain (loss) on foreign currency translation Other income (expense) $ 2 $ — Reclassifications net of tax $ 2 $ — Pension and other postretirement benefits: Amortization of prior service credit (cost) Other income (expense) $ 10 $ 10 Tax (provision) benefit (3 ) (3 ) Reclassifications net of tax $ 7 $ 7 Derivative financial instruments: Foreign exchange contracts Sales of Machinery, Energy & Transportation $ 11 $ — Foreign exchange contracts Cost of goods sold (32 ) (1 ) Foreign exchange contracts Other income (expense) (43 ) (4 ) Foreign exchange contracts Interest expense of Financial Products 9 7 Interest rate contracts Interest expense excluding Financial Products (1 ) — Interest rate contracts Interest expense of Financial Products (19 ) — Reclassifications before tax (75 ) 2 Tax (provision) benefit 17 (1 ) Reclassifications net of tax $ (58 ) $ 1 Available-for-sale securities: Realized gain (loss) Other income (expense) $ — $ 1 Reclassifications net of tax $ — $ 1 Total reclassifications from Accumulated other comprehensive income (loss) $ (49 ) $ 9 Six Months Ended June 30 (Millions of dollars) Classification of income (expense) 2020 2019 Foreign currency translation Gain (loss) on foreign currency translation Other income (expense) $ (22 ) $ — Reclassifications net of tax $ (22 ) $ — Pension and other postretirement benefits: Amortization of prior service credit (cost) Other income (expense) $ 19 $ 20 Tax (provision) benefit (5 ) (6 ) Reclassifications net of tax $ 14 $ 14 Derivative financial instruments: Foreign exchange contracts Sales of Machinery, Energy & Transportation $ 16 $ 1 Foreign exchange contracts Cost of goods sold (43 ) (4 ) Foreign exchange contracts Other income (expense) 28 2 Foreign exchange contracts Interest expense of Financial Products 20 14 Interest rate contracts Interest expense excluding Financial Products (2 ) (1 ) Interest rate contracts Interest expense of Financial Products (24 ) 1 Reclassifications before tax (5 ) 13 Tax (provision) benefit 2 (3 ) Reclassifications net of tax $ (3 ) $ 10 Total reclassifications from Accumulated other comprehensive income (loss) $ (11 ) $ 24

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2020
Reconciliation of Sales and revenues
Sales and revenues by geographic region	For the three and six months ended June 30, 2020 and 2019 , Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales Three Months Ended June 30 (Millions of dollars) 2020 2019 Oil and gas $ 1,027 $ 1,305 Power generation 895 1,021 Industrial 678 957 Transportation 941 1,241 Energy & Transportation External Sales $ 3,541 $ 4,524 Six Months Ended June 30 2020 2019 Oil and gas $ 1,888 $ 2,436 Power generation 1,749 2,057 Industrial 1,479 1,861 Transportation 2,043 2,403 Energy & Transportation External Sales $ 7,159 $ 8,757 For the three and six months ended June 30, 2020 and 2019 , 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 Intersegment Sales and Revenues Total Sales and Revenues Three Months Ended June 30, 2020 Construction Industries $ 1,604 $ 212 $ 933 $ 1,283 $ 4,032 $ 16 $ 4,048 Resource Industries 507 270 379 554 1,710 116 1,826 Energy & Transportation 1,816 197 929 599 3,541 608 4,149 Financial Products Segment 493 60 96 114 763 1 — 763 Total sales and revenues from reportable segments 4,420 739 2,337 2,550 10,046 740 10,786 All Other operating segment 7 1 5 15 28 87 115 Corporate Items and Eliminations (41 ) (10 ) (9 ) (17 ) (77 ) (827 ) (904 ) Total Sales and Revenues $ 4,386 $ 730 $ 2,333 $ 2,548 $ 9,997 $ — $ 9,997 Three Months Ended June 30, 2019 Construction Industries $ 3,513 $ 392 $ 1,108 $ 1,433 $ 6,446 $ 21 $ 6,467 Resource Industries 1,058 448 446 759 2,711 108 2,819 Energy & Transportation 2,297 325 1,160 742 4,524 962 5,486 Financial Products Segment 563 76 102 132 873 1 — 873 Total sales and revenues from reportable segments 7,431 1,241 2,816 3,066 14,554 1,091 15,645 All Other operating segment 14 1 4 15 34 91 125 Corporate Items and Eliminations (111 ) (13 ) (14 ) (18 ) (156 ) (1,182 ) (1,338 ) Total Sales and Revenues $ 7,334 $ 1,229 $ 2,806 $ 3,063 $ 14,432 $ — $ 14,432 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $88 million and $136 million in the three months ended June 30, 2020 and 2019, respectively. Sales and Revenues by Geographic Region (Millions of dollars) North America Latin America EAME Asia/ Pacific External Sales and Revenues Intersegment Sales and Revenues Total Sales and Revenues Six Months Ended June 30, 2020 Construction Industries $ 3,689 $ 477 $ 1,822 $ 2,356 $ 8,344 $ 10 $ 8,354 Resource Industries 1,203 590 774 1,122 3,689 221 3,910 Energy & Transportation 3,554 446 1,982 1,177 7,159 1,339 8,498 Financial Products Segment 1,018 130 198 231 1,577 1 — 1,577 Total sales and revenues from reportable segments 9,464 1,643 4,776 4,886 20,769 1,570 22,339 All Other operating segment 12 3 16 25 56 168 224 Corporate Items and Eliminations (110 ) (24 ) (22 ) (37 ) (193 ) (1,738 ) (1,931 ) Total Sales and Revenues $ 9,366 $ 1,622 $ 4,770 $ 4,874 $ 20,632 $ — $ 20,632 Six Months Ended June 30, 2019 Construction Industries $ 6,478 $ 711 $ 2,114 $ 2,995 $ 12,298 $ 42 $ 12,340 Resource Industries 2,009 871 914 1,564 5,358 213 5,571 Energy & Transportation 4,448 657 2,192 1,460 8,757 1,939 10,696 Financial Products Segment 1,121 146 204 252 1,723 1 — 1,723 Total sales and revenues from reportable segments 14,056 2,385 5,424 6,271 28,136 2,194 30,330 All Other operating segment 22 1 15 33 71 175 246 Corporate Items and Eliminations (221 ) (23 ) (26 ) (39 ) (309 ) (2,369 ) (2,678 ) Total Sales and Revenues $ 13,857 $ 2,363 $ 5,413 $ 6,265 $ 27,898 $ — $ 27,898 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $193 million and $267 million in the six months ended June 30, 2020 and 2019, respectively.
Reconciliation of Consolidated profit before taxes:	Reconciliation of Consolidated profit before taxes: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Profit from reportable segments: Construction Industries $ 518 $ 1,247 $ 1,158 $ 2,332 Resource Industries 152 481 456 1,057 Energy & Transportation 624 886 1,226 1,724 Financial Products Segment 148 193 253 404 Total profit from reportable segments 1,442 2,807 3,093 5,517 Profit from All Other operating segment (3 ) 11 4 36 Cost centers (23 ) 17 9 41 Corporate costs (120 ) (149 ) (287 ) (325 ) Timing (24 ) (58 ) (51 ) (124 ) Restructuring costs (96 ) (103 ) (124 ) (142 ) Methodology differences: Inventory/cost of sales (38 ) (8 ) (18 ) (1 ) Postretirement benefit expense (118 ) 2 285 (15 ) Stock-based compensation expense (67 ) (68 ) (114 ) (113 ) Financing costs (119 ) (51 ) (199 ) (115 ) Currency (60 ) (92 ) (208 ) (48 ) Other income/expense methodology differences (80 ) (121 ) (172 ) (250 ) Other methodology differences (16 ) (9 ) (27 ) (19 ) Total consolidated profit before taxes $ 678 $ 2,178 $ 2,191 $ 4,442
Reconciliation of Assets:	Reconciliation of Assets: (Millions of dollars) June 30, 2020 December 31, 2019 Assets from reportable segments: Construction Industries $ 4,581 $ 4,601 Resource Industries 6,281 6,505 Energy & Transportation 8,943 8,548 Financial Products Segment 34,270 35,813 Total assets from reportable segments 54,075 55,467 Assets from All Other operating segment 1,620 1,728 Items not included in segment assets: Cash and short-term investments 8,030 7,299 Deferred income taxes 1,353 1,294 Goodwill and intangible assets 4,597 4,435 Property, plant and equipment – net and other assets 2,460 2,529 Inventory methodology differences (2,625 ) (2,426 ) Liabilities included in segment assets 7,701 8,541 Other (645 ) (414 ) Total assets $ 76,566 $ 78,453
Reconciliation of Depreciation and amortization:	Reconciliation of Depreciation and amortization: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Depreciation and amortization from reportable segments: Construction Industries $ 61 $ 74 $ 122 $ 147 Resource Industries 104 112 207 224 Energy & Transportation 149 155 295 307 Financial Products Segment 198 207 403 413 Total depreciation and amortization from reportable segments 512 548 1,027 1,091 Items not included in segment depreciation and amortization: All Other operating segment 63 53 125 105 Cost centers 32 33 65 65 Other 1 13 5 27 Total depreciation and amortization $ 608 $ 647 $ 1,222 $ 1,288
Reconciliation of Capital expenditures:	Reconciliation of Capital expenditures: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Capital expenditures from reportable segments: Construction Industries $ 28 $ 41 $ 48 $ 69 Resource Industries 36 37 53 60 Energy & Transportation 144 118 231 216 Financial Products Segment 256 459 503 705 Total capital expenditures from reportable segments 464 655 835 1,050 Items not included in segment capital expenditures: All Other operating segment 23 22 38 35 Cost centers 6 29 15 49 Timing (14 ) (5 ) 146 129 Other (29 ) (23 ) (36 ) (38 ) Total capital expenditures $ 450 $ 678 $ 998 $ 1,225

Cat Financial Financing Activ_2

Cat Financial Financing Activities (Tables)	6 Months Ended
	Jun. 30, 2020
Financing Receivable, Past Due [Line Items]
Allowance for credit losses and total finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) June 30, 2020 Allowance for Credit Losses: Customer Dealer Total Balance at beginning of year $ 375 $ 45 $ 420 Adjustment to adopt new accounting guidance 1 12 — 12 Receivables written off (73 ) — (73 ) Recoveries on receivables previously written off 13 — 13 Provision for credit losses 146 — 146 Other (6 ) — (6 ) Balance at end of period $ 467 $ 45 $ 512 Individually evaluated $ 184 $ 39 $ 223 Collectively evaluated 283 6 289 Ending Balance $ 467 $ 45 $ 512 Finance Receivables: Individually evaluated $ 601 $ 78 $ 679 Collectively evaluated 17,869 3,305 21,174 Ending Balance $ 18,470 $ 3,383 $ 21,853 1 See Note 2 regarding new accounting guidance related to credit losses. (Millions of dollars) December 31, 2019 Allowance for Credit Losses: Customer Dealer Total 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 $ 178 $ 39 $ 217 Collectively evaluated 197 6 203 Ending Balance $ 375 $ 45 $ 420 Finance Receivables: Individually evaluated $ 594 $ 78 $ 672 Collectively evaluated 18,093 3,632 21,725 Ending Balance $ 18,687 $ 3,710 $ 22,397
Aging related to finance receivables	The table below summarizes Cat Financial's recorded investment in finance receivables by aging category. December 31, 2019 (Millions of dollars) 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Total Finance Receivables Customer North America $ 72 $ 23 $ 55 $ 150 $ 8,002 $ 8,152 EAME 30 31 141 202 2,882 3,084 Asia Pacific 40 14 29 83 2,181 2,264 Mining 5 — 19 24 2,266 2,290 Latin America 41 23 80 144 1,089 1,233 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 The table below summarizes the aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year: (Millions of dollars) June 30, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Finance Receivables North America Current $ 1,854 $ 3,032 $ 1,831 $ 814 $ 374 $ 97 $ 102 $ 8,104 31-60 days past due 13 28 20 15 5 2 — 83 61-90 days past due 4 15 14 8 3 1 — 45 91+ days past due 3 24 31 19 15 6 — 98 EAME Current 545 1,104 727 336 113 33 — 2,858 31-60 days past due 5 13 12 5 2 — — 37 61-90 days past due 6 7 2 2 — — — 17 91+ days past due — 11 14 15 51 62 — 153 Asia/Pacific Current 696 941 502 126 17 7 — 2,289 31-60 days past due 4 22 18 5 — — — 49 61-90 days past due 2 11 8 3 — — — 24 91+ days past due 1 19 18 5 1 — — 44 Mining Current 198 655 375 207 124 188 270 2,017 31-60 days past due — — 13 5 — — — 18 61-90 days past due — 1 3 — — — — 4 91+ days past due — 12 3 25 — — 1 41 Latin America Current 286 440 214 74 22 27 — 1,063 31-60 days past due 2 6 8 1 1 1 — 19 61-90 days past due — 3 9 5 1 — — 18 91+ days past due — 19 40 29 8 6 — 102 Caterpillar Power Finance Current 106 250 172 278 99 143 134 1,182 31-60 days past due — — 2 — — — — 2 61-90 days past due — — — — — 2 — 2 91+ days past due — — 20 13 33 135 — 201 Total Customer $ 3,725 $ 6,613 $ 4,056 $ 1,990 $ 869 $ 710 $ 507 $ 18,470
Impaired finance receivables	In Cat Financial’s Customer portfolio segment, impaired finance receivables and the related unpaid principal balances and allowance were as follows: December 31, 2019 (Millions of dollars) Recorded Investment Unpaid Principal Balance Related Allowance Impaired Finance Receivables With No Allowance Recorded North America $ 6 $ 6 $ — EAME — — — Asia Pacific — — — Mining 22 22 — Latin America 8 8 — Caterpillar Power Finance 58 58 — Total $ 94 $ 94 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 30 $ 30 $ 11 EAME 61 61 29 Asia Pacific 8 8 2 Mining 37 36 9 Latin America 58 58 20 Caterpillar Power Finance 306 319 107 Total $ 500 $ 512 $ 178 Total Impaired Finance Receivables North America $ 36 $ 36 $ 11 EAME 61 61 29 Asia Pacific 8 8 2 Mining 59 58 9 Latin America 66 66 20 Caterpillar Power Finance 364 377 107 Total $ 594 $ 606 $ 178 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (Millions of dollars) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired Finance Receivables With No Allowance Recorded North America $ 10 $ — $ 10 $ — EAME 1 — 1 — Asia Pacific — — — — Mining 29 1 30 1 Latin America 20 1 23 1 Caterpillar Power Finance 41 — 51 1 Total $ 101 $ 2 $ 115 $ 3 Impaired Finance Receivables With An Allowance Recorded North America $ 35 $ — $ 37 $ 1 EAME 94 — 94 1 Asia Pacific 9 — 8 — Mining 39 — 42 1 Latin America 74 2 75 3 Caterpillar Power Finance 443 4 446 7 Total $ 694 $ 6 $ 702 $ 13 Total Impaired Finance Receivables North America $ 45 $ — $ 47 $ 1 EAME 95 — 95 1 Asia Pacific 9 — 8 — Mining 68 1 72 2 Latin America 94 3 98 4 Caterpillar Power Finance 484 4 497 8 Total $ 795 $ 8 $ 817 $ 16
Investment in finance receivables on non-accrual status	In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows: June 30, 2020 Amortized Cost (Millions of dollars) Non-accrual Non-accrual 91+ Still North America $ 78 $ 1 $ 30 EAME 168 — 5 Asia Pacific 32 — 12 Mining 43 — — Latin America 106 3 2 Caterpillar Power Finance 302 21 — Total $ 729 $ 25 $ 49 There was $1 million and $5 million of interest income recognized during the three and six months ended June 30, 2020 for customer finance receivables on non-accrual status. (Millions of dollars) December 31, 2019 Recorded Investment Non-accrual Finance Receivables 91+ Still Accruing North America $ 44 $ 15 EAME 165 4 Asia Pacific 21 8 Mining 47 — Latin America 89 2 Caterpillar Power Finance 361 — Total $ 727 $ 29
Finance receivables modified as TDRs	Cat Financial’s finance receivables in the Customer portfolio segment modified as TDRs were as follows: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (Dollars in millions) Number of Contracts Pre-TDR Amortized Cost Post-TDR Amortized Cost Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 10 $ 9 $ 9 8 $ 5 $ 4 EAME — — — 2 10 10 Asia Pacific (1) 104 8 8 — — — Mining (2) 40 17 17 1 6 6 Latin America 1 — — 4 2 2 Caterpillar Power Finance 6 37 37 7 47 47 Total 161 $ 71 $ 71 22 $ 70 $ 69 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Number of Contracts Pre-TDR Post-TDR Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 10 $ 9 $ 9 8 $ 5 $ 4 EAME — — — 19 17 17 Asia Pacific 104 8 8 — — — Mining 40 17 17 1 6 6 Latin America 6 2 2 4 2 2 Caterpillar Power Finance 6 37 37 15 98 97 Total 166 $ 73 $ 73 47 $ 128 $ 126 (1) In Asia/Pacific, during the three months ended June 30, 2020, 104 contracts with a pre-TDR amortized cost of $8 million and a post-TDR amortized cost of $8 million were related to four customers. (2) In Mining, during the three months ended June 30, 2020, 40 contracts with a pre-TDR amortized cost of $17 million and a post-TDR amortized cost of $17 million were related to two customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (Dollars in millions) Number of Contracts Post-TDR Amortized Cost Number of Contracts Post-TDR Recorded Investment North America 1 $ — — $ — Total 1 $ — — $ — Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Number of Contracts Post-TDR Number of Contracts Post-TDR Recorded Investment North America 1 $ — — $ — EAME 2 10 — — Latin America 3 1 — — Total 6 $ 11 — $ —

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Assets and liabilities measured on a recurring basis at fair value	Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in our Consolidated Statement of Financial Position as of June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 (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 — 51 — — 51 Corporate bonds Corporate bonds — 955 — — 955 Asset-backed securities — 143 — — 143 Mortgage-backed debt securities U.S. governmental agency — 381 — — 381 Residential — 6 — — 6 Commercial — 65 — — 65 Total debt securities 9 1,601 — — 1,610 Equity securities Large capitalization value 163 — — — 163 Smaller company growth 30 — 2 — 32 REIT — — — 139 139 Total equity securities 193 — 2 139 334 Derivative financial instruments, net — 48 — — 48 Total assets $ 202 $ 1,649 $ 2 $ 139 $ 1,992 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
Fair values of financial instruments	Fair values of our financial instruments were as follows: Fair Value of Financial Instruments June 30, 2020 December 31, 2019 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 8,784 $ 8,784 $ 8,284 $ 8,284 1 Restricted cash and short-term investments 7 7 8 8 1 Investments in debt and equity securities 1,944 1,944 1,711 1,711 1, 2 & 3 Note 8 Finance receivables – net (excluding finance leases 1 ) 14,029 14,389 14,473 14,613 3 Note 17 Wholesale inventory receivables – net (excluding finance leases 1 ) 1,196 1,175 1,105 1,076 3 Foreign currency contracts – net 12 12 62 62 2 Note 5 Interest rate contracts – net 42 42 — — 2 Note 5 Commodity contracts – net — — 3 3 2 Note 5 Liabilities Short-term borrowings 4,314 4,314 5,166 5,166 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 11,124 13,978 9,157 11,216 2 Financial Products 23,184 23,856 23,334 23,655 2 Interest rate contracts – net — — 20 20 2 Note 5 Commodity contracts – net 6 6 — — 2 Note 5 Guarantees 5 5 5 5 3 Note 11 1 Represents finance leases and failed sales leasebacks of $7,588 million and $7,800 million at June 30, 2020 and December 31, 2019 , respectively.

Other income (expense) (Tables)

Other income (expense) (Tables)	6 Months Ended
	Jun. 30, 2020
Other Income and Expenses [Abstract]
Other income (expense)	Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2020 2019 2020 2019 Investment and interest income $ 27 $ 54 $ 70 $ 106 Foreign exchange gains (losses) 1 (4 ) (47 ) (79 ) (29 ) License fee income 23 31 48 56 Net periodic pension and OPEB income (cost), excluding service cost 2 (63 ) 24 270 50 Gains (losses) on sale of securities and affiliated companies 37 14 (21 ) 53 Miscellaneous income (loss) 9 (8 ) (37 ) (8 ) Total $ 29 $ 68 $ 251 $ 228 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 5 for further details. 2 Includes remeasurement losses of $(122) million and a remeasurement net gain of $132 million for the three and six months ended June 30, 2020, respectively, from the settlements of certain pension obligations. See Note 9 for further details.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	6 Months Ended
	Jun. 30, 2020
Restructuring Charges [Abstract]
Restructuring and related costs	Restructuring costs for the three and six months ended June 30, 2020 and 2019 were as follows: (Millions of dollars) Three Months Ended June 30 2020 2019 Employee separations 1 $ 123 $ 10 Contract terminations 1 2 — Long-lived asset impairments 1 14 29 Other 2 8 71 Total restructuring costs $ 147 $ 110 Six Months Ended June 30 2020 2019 Employee separations 1 $ 134 $ 25 Contract terminations 1 3 — Long-lived asset impairments 1 23 36 Other 2 24 97 Total restructuring costs $ 184 $ 158 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for inventory write-downs, equipment relocation, project management and building demolition, all of which are primarily included in Cost of goods sold.
Summary of separation activity	The following table summarizes the 2019 and 2020 employee separation activity: (Millions of dollars) 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 Increase in liability (separation charges) 134 Reduction in liability (payments) (95 ) Liability balance at June 30, 2020 $ 87

Nature of Operations, Basis o_2

Nature of Operations, Basis of Presentation and Change in Accounting Principle (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Variable Interest Entity
Variable Interest Entity Maximum Exposure
Maximum exposure to loss from VIEs for which we are not the primary beneficiary	$ 92	$ 133

Sales and revenue contract in_2

Sales and revenue contract information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Trade receivables from dealers and end users	$ 6,191		$ 6,191		$ 7,648	$ 7,743
Long term trade receivables from dealers and end users	700		700		693	674
Contract liabilities	1,641		1,641		$ 1,654	$ 1,680
Revenue recognized from contract liability balance at beginning of period	331	$ 368	699	$ 875
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Unsatisfied performance obligations with an original contract duration greater than one year	$ 5,900		$ 5,900
Expected period of performance satisfaction	12 months		12 months
Twelve Months | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Unsatisfied performance obligations with an original contract duration greater than one year	$ 2,400		$ 2,400

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock-based compensation awards
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum			24.50%	25.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum			29.70%	38.70%
Stock-based compensation expense, before tax (in dollars)	$ 67	$ 68	$ 114	$ 113
Assumptions used in determining the fair value of the stock-based awards
Weighted-average dividend yield (as a percent)			2.47%	2.56%
Weighted-average volatility (as a percent)			25.70%	29.10%
Risk-free interest rates, low end of range (as a percent)			1.21%	2.48%
Risk-free interest rates, high end of range (as a percent)			1.39%	2.68%
Weighted-average expected lives (in years)			8 years	7 years
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars)	$ 228		$ 228
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years)			1 year 9 months 18 days
Stock Options
Stock-based compensation awards
Shares Granted (in shares)			1,913,888	1,499,524
Weighted-Average Fair Value Per Share (in dollars per share)			$ 25.98	$ 40.98
Weighted-Average Grant Date Stock Price (in dollars per share)	$ 127.60	$ 138.35	127.60	138.35
RSUs
Stock-based compensation awards
Weighted-Average Grant Date Stock Price (in dollars per share)	127.60	138.35	$ 127.60	$ 138.35
Shares Granted (in shares)			705,287	657,389
Weighted-Average Fair Value Per Share (in dollars per share)			$ 127.60	$ 138.35
PRSUs
Stock-based compensation awards
Weighted-Average Grant Date Stock Price (in dollars per share)	$ 127.60	$ 138.35	$ 127.60	$ 138.35
Shares Granted (in shares)			371,641	342,097
Weighted-Average Fair Value Per Share (in dollars per share)			$ 127.60	$ 138.35

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details) $ in Millions	6 Months Ended
	Jun. 30, 2020USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign currency cash flow hedges, maximum allowable period (in years)	5 years
Foreign currency cash flow hedges, maximum period (in months)	60 years
Deferred net gains, foreign currency exchange rate risk, to be reclassified from equity to current earnings over the next twelve months	$ (50)
Derivative
Commodity forward and option contracts, maximum period (in years)	5 years

Derivative Financial instrume_5

Derivative Financial instruments and Risk Management- Asset (liability) fair value (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Derivatives Fair Value
Asset Fair Value	$ 222	$ 116
Liability Fair Value	(174)	(71)
Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	35	32
Liability Fair Value	(133)	(21)
Financial Products
Derivatives Fair Value
Asset Fair Value	187	84
Liability Fair Value	(41)	(50)
Designated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	5	51
Designated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	15	18
Designated Derivatives | Foreign exchange contracts | Receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	53	54
Designated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	11	9
Designated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	4	13
Designated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(81)	(20)
Designated Derivatives | Foreign exchange contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(3)	(3)
Designated Derivatives | Foreign exchange contracts | Other Liabilities | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(36)	0
Designated Derivatives | Interest rate contracts | Receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	4	0
Designated Derivatives | Interest rate contracts | Long-term receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	65	5
Designated Derivatives | Interest rate contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(26)	(25)
Designated Derivatives | Interest rate contracts | Other Liabilities | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(1)	0
Undesignated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	43	(6)
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	2	1
Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	49	7
Undesignated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other | Financial Products
Derivatives Fair Value
Asset Fair Value	12	5
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(2)	0
Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses | Financial Products
Derivatives Fair Value
Liability Fair Value	(12)	(22)
Undesignated Derivatives | Commodity contracts | Receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	6	4
Undesignated Derivatives | Commodity contracts | Long-term receivables-trade and other | Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	1	0
Undesignated Derivatives | Commodity contracts | Accrued Expenses | Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	$ (13)	$ (1)

Derivative Financial instrume_6

Derivative Financial instruments and Risk Management- Notional amounts (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Machinery, Energy & Transportation
Derivative
Derivative instruments notional amount	$ 3,598	$ 2,563
Financial Products
Derivative
Derivative instruments notional amount	$ 11,454	$ 8,931

Derivative Financial instrume_7

Derivative Financial instruments and Risk Management- Effect of derivatives designated as hedging instruments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Derivative Instruments, Gain (Loss)
Sales of Machinery, Energy & Transportation	$ 9,997	$ 14,432	$ 20,632	$ 27,898
Interest expense excluding Financial Products	135	103	248	206
Other income (expense)	29	68	251	228
Cost of goods sold	7,113	9,941	14,379	18,944
Interest expense of Financial Products	149	192	324	382
Designated Derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	(90)	(20)	(98)	(7)
Amount of gain (losses) reclassified from AOCI	(75)	2	(5)	13
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Financial Products
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	(35)	10	66	32
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Financial Products | Other Nonoperating Income (Expense)
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(43)	(4)	28	2
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Financial Products | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	9	7	20	14
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	(34)	4	(124)	21
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation | Sales
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	11		16	1
Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Machinery, Energy & Transportation | Cost of Sales
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(32)	(1)	(43)	(4)
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	(9)	(34)	(24)	(60)
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Financial Products | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(19)	0	(24)	1
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	(12)	0	(16)
Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Machinery, Energy & Transportation | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(1)		(2)	(1)
Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Sales of Machinery, Energy & Transportation	$ 9,310	$ 13,671	$ 19,224	$ 26,395

Derivative Financial Instrume_8

Derivative Financial Instruments and Risk Management Derivative Financial Instruments and Risk Management- Effect of Derivatives not designated as hedging instruments (Details) - Undesignated Derivatives - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 8	$ (10)	$ 67	$ (10)
Other Nonoperating Income (Expense) | Financial Products | Foreign exchange contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(23)	(10)	85	(39)
Other Nonoperating Income (Expense) | Machinery, Energy & Transportation | Foreign exchange contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	16	7	13	13
Other Nonoperating Income (Expense) | Machinery, Energy & Transportation | Commodity contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 15	$ (7)	$ (31)	$ 16

Derivative Financial instrume_9

Derivative Financial instruments and Risk Management-Effect of net settlement provisions upon default or termination- Offsetting assets (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Offsetting Assets
Gross Amount of Recognized Assets	$ 222	$ 116
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	222	116
Financial Instruments	(67)	(34)
Cash Collateral Received	0	0
Net Amount of Assets	155	82
Machinery, Energy & Transportation
Offsetting Assets
Gross Amount of Recognized Assets	35	32
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	35	32
Financial Instruments	(34)	(13)
Cash Collateral Received	0	0
Net Amount of Assets	1	19
Financial Products
Offsetting Assets
Gross Amount of Recognized Assets	187	84
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	187	84
Financial Instruments	(33)	(21)
Cash Collateral Received	0	0
Net Amount of Assets	$ 154	$ 63

Derivative Financial instrum_10

Derivative Financial instruments and Risk Management- Effect of net settlement provisions upon default or termination- Offsetting liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Offsetting Liabilities
Gross Amount of Recognized Liabilities	$ (174)	$ (71)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(174)	(71)
Financial Instruments	67	34
Cash collateral pledged	0	0
Net Amount of Liabilities	(107)	(37)
Machinery, Energy & Transportation
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(133)	(21)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(133)	(21)
Financial Instruments	34	13
Cash collateral pledged	0	0
Net Amount of Liabilities	(99)	(8)
Financial Products
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(41)	(50)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(41)	(50)
Financial Instruments	33	21
Cash collateral pledged	0	0
Net Amount of Liabilities	$ (8)	$ (29)

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 4,193	$ 4,263
Work-in-process	1,076	1,147
Finished goods	5,839	5,598
Supplies	263	258
Total inventories	$ 11,371	$ 11,266

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Intangible assets
Weighted Amortizable Life (in years)			14 years		14 years
Finite-Lived Intangible Assets, Gross	$ 4,105		$ 4,105		$ 4,151
Finite-Lived Intangible Assets, Accumulated Amortization	(2,685)		(2,685)		(2,586)
Net	1,420		1,420		$ 1,565
Amortization expense	78	$ 81	158	$ 163
Remaining six months of 2020	151		151
2021	291		291
2022	274		274
2023	217		217
2024	159		159
Thereafter	328		$ 328
Customer Relationships
Intangible assets
Weighted Amortizable Life (in years)			15 years		15 years
Finite-Lived Intangible Assets, Gross	2,421		$ 2,421		$ 2,450
Finite-Lived Intangible Assets, Accumulated Amortization	(1,472)		(1,472)		(1,406)
Net	949		$ 949		$ 1,044
Intellectual Property
Intangible assets
Weighted Amortizable Life (in years)			12 years		12 years
Finite-Lived Intangible Assets, Gross	1,504		$ 1,504		$ 1,510
Finite-Lived Intangible Assets, Accumulated Amortization	(1,088)		(1,088)		(1,055)
Net	416		$ 416		$ 455
Other
Intangible assets
Weighted Amortizable Life (in years)			13 years		13 years
Finite-Lived Intangible Assets, Gross	180		$ 180		$ 191
Finite-Lived Intangible Assets, Accumulated Amortization	(125)		(125)		(125)
Net	$ 55		$ 55		$ 66

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	$ 7,393
Impairments, beginning of period	(1,197)
Net goodwill, beginning of period	6,196
Goodwill impairment charge	0	$ 0
Other adjustments	(4)
Goodwill, end of period	7,389
Impairments, end of period	(1,197)
Net goodwill, end of period	6,192
Construction Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	306
Impairments, beginning of period	(22)
Net goodwill, beginning of period	284
Goodwill impairment charge	0
Other adjustments	1
Goodwill, end of period	307
Impairments, end of period	(22)
Net goodwill, end of period	285
Resource Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	4,156
Impairments, beginning of period	(1,175)
Net goodwill, beginning of period	2,981
Goodwill impairment charge	0
Other adjustments	(4)
Goodwill, end of period	4,152
Impairments, end of period	(1,175)
Net goodwill, end of period	2,977
Energy & Transportation
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	2,875
Other adjustments	(2)
Goodwill, end of period	2,873
All Other Operating Segments
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	56
Other adjustments	1
Goodwill, end of period	$ 57

Investments in Debt and Equit_3

Investments in Debt and Equity Securities (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Schedule of Investments in Debt and Equity Securities
Cost basis	$ 1,555	$ 1,340
Unrealized pretax net gains (losses)	55	25
Fair Value	1,610	1,365
U.S. treasury bonds
Schedule of Investments in Debt and Equity Securities
Cost basis	9	9
Unrealized pretax net gains (losses)	0	0
Fair Value	9	9
Other U.S. and non-U.S. government bonds
Schedule of Investments in Debt and Equity Securities
Cost basis	50	54
Unrealized pretax net gains (losses)	1	0
Fair Value	51	54
Corporate bonds
Schedule of Investments in Debt and Equity Securities
Cost basis	917	836
Unrealized pretax net gains (losses)	38	20
Fair Value	955	856
Asset-backed securities
Schedule of Investments in Debt and Equity Securities
Cost basis	142	62
Unrealized pretax net gains (losses)	1	0
Fair Value	143	62
U.S. governmental agency mortgage-backed securities
Schedule of Investments in Debt and Equity Securities
Cost basis	369	327
Unrealized pretax net gains (losses)	12	4
Fair Value	381	331
Residential
Schedule of Investments in Debt and Equity Securities
Cost basis	6	6
Unrealized pretax net gains (losses)	0	0
Fair Value	6	6
Commercial
Schedule of Investments in Debt and Equity Securities
Cost basis	62	46
Unrealized pretax net gains (losses)	3	1
Fair Value	$ 65	$ 47

Investments in Debt and Equit_4

Investments in Debt and Equity Securities (Details 2) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Available-for-sale Securities, Continuous Unrealized Loss Position
Less than 12 months - Fair Value	$ 148	$ 58
Less than 12 months - Unrealized losses	5	1
12 months or more - Fair Value	45	50
12 months or more - Unrealized losses	1	0
Total - Fair Value	193	108
Total - Unrealized losses	6	1
Corporate bonds
Available-for-sale Securities, Continuous Unrealized Loss Position
Less than 12 months - Fair Value	95	58
Less than 12 months - Unrealized losses	4	1
12 months or more - Fair Value	43	50
12 months or more - Unrealized losses	1	0
Total - Fair Value	138	108
Total - Unrealized losses	5	$ 1
Asset-backed securities
Available-for-sale Securities, Continuous Unrealized Loss Position
Less than 12 months - Fair Value	53
Less than 12 months - Unrealized losses	1
12 months or more - Fair Value	2
12 months or more - Unrealized losses	0
Total - Fair Value	55
Total - Unrealized losses	$ 1

Investments in Debt and Equit_5

Investments in Debt and Equity Securities (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost Basis	$ 126		$ 126
Due after one year through five years, Cost Basis	689		689
Due after five through ten years, Cost Basis	213		213
Due after ten years, Cost Basis	90		90
Due in one year or less, Fair Value	127		127
Due after one year through five years, Fair Value	718		718
Due after five years through ten years, Fair Value	222		222
Due after ten years, Fair Value	91		91
Debt Securities, Available-for-sale, Amortized Cost	1,555		1,555		$ 1,340
Available-for-sale securities, debt securities	1,610		1,610		1,365
Schedule of Investments in Debt and Equity Securities
Unrealized gain (loss) on equity securities	26	$ 14	(14)	$ 53
Available-for-sale Securities, Proceeds, Gains and Losses
Proceeds from the sale of available-for-sale securities	66	97	124	144
Gross gains from the sale of available-for-sale securities	1	1	1	1
Gross losses from the sale of available-for-sale securities	1	$ 0	1	$ 1
U.S. governmental agency mortgage-backed securities
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	369		369		327
Available-for-sale securities, debt securities	381		381		331
Residential
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	6		6		6
Available-for-sale securities, debt securities	6		6		6
Commercial
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	62		62		46
Available-for-sale securities, debt securities	$ 65		$ 65		$ 47

Postretirement Benefits (Detail

Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Pension and Other Postretirement Benefits
Pension and other postretirement benefit contributions
Contributions to pension and other postretirement benefit plans	$ 72		$ 170
Expected full year contributions to pension and other postretirement benefit plans during the year	280		280
Other Postretirement Benefits Plan
Components of net periodic benefit cost:
Service cost	24	$ 21	47	$ 41
Interest cost	27	34	53	68
Expected return on plan assets	(3)	(5)	(6)	(10)
Amortization of prior service cost / (credit)	(10)	(10)	(19)	(20)
(Gain) loss on remeasurement of pension obligations	0	0	0	0
Curtailments, settlements and termination benefits	0	0	0	0
Net periodic benefit cost (benefit)	38	40	75	79
UNITED STATES
Components of net periodic benefit cost:
Service cost	0	28	0	57
Interest cost	121	150	242	300
Expected return on plan assets	(198)	(179)	(396)	(360)
Amortization of prior service cost / (credit)	0	0	0	0
(Gain) loss on remeasurement of pension obligations	2	0	2	0
Curtailments, settlements and termination benefits	0	0	0	0
Net periodic benefit cost (benefit)	(75)	(1)	(152)	(3)
Foreign Plan
Components of net periodic benefit cost:
Service cost	14	20	28	41
Interest cost	21	24	40	47
Expected return on plan assets	(38)	(38)	(73)	(75)
Amortization of prior service cost / (credit)	0	0	0	0
(Gain) loss on remeasurement of pension obligations	120	0	(134)	0
Curtailments, settlements and termination benefits	21	0	21	0
Net periodic benefit cost (benefit)	$ 138	$ 6	$ (118)	$ 13

Postretirement Benefits (Deta_2

Postretirement Benefits (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Defined contribution plans
Costs related to defined contribution plans	$ 146	$ 114	$ 188	$ 272
U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	126	93	145	230
Non-U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	$ 20	$ 21	$ 43	$ 42

Leases Lease revenue (Details)

Leases Lease revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Finance lease revenue	$ 119	$ 135	$ 244	$ 254
Operating lease revenue	285	308	588	624
Total	$ 404	$ 443	$ 832	$ 878

Guarantees and Product Warran_3

Guarantees and Product Warranty (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Related liability	$ 5	$ 5
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,568	1,609
SPC assets in consolidated statement	76,566	78,453
SPC liabilities in consolidated statement	62,789	63,824
Caterpillar dealer performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,139	1,150
Supplier consortium performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	241	238
Other guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	188	221
Variable Interest Entity, Primary Beneficiary
Guarantor Obligations
SPC assets in consolidated statement	1,299	1,453
SPC liabilities in consolidated statement	$ 1,299	$ 1,452

Guarantees and Product Warran_4

Guarantees and Product Warranty (Details 2) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Movement in Standard Product Warranty Accrual
Warranty liability, beginning balance	$ 1,541	$ 1,391
Reduction in liability (payments)	(436)	(903)
Increase in liability (new warranties)	428	1,053
Warranty liability, ending balance	$ 1,533	$ 1,541

Profit Per Share (Details)

Profit Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2020		Jun. 30, 2019		Jun. 30, 2020		Jun. 30, 2019		Jul. 01, 2018
Earnings Per Share [Abstract]
Profit for the period (A) (in dollars)	$ 458	[1]	$ 1,620	[1]	$ 1,550	[2]	$ 3,501	[2]
Determination of shares (in millions)
Weighted-average number of common shares outstanding (B) (in shares)	541,500,000		567,800,000		544,500,000		569,900,000
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares)	3,000,000		5,300,000		3,700,000		5,900,000
Average common shares outstanding for fully diluted computation (C) (in shares)	544,500,000	[3]	573,100,000	[3]	548,200,000	[4]	575,800,000	[4]
Profit (loss) per share of common stock:
Assuming no dilution (A/B) (in dollars per share)	$ 0.84		$ 2.85		$ 2.85		$ 6.14
Assuming full dilution (A/C) (in dollars per share)	$ 0.84	[3]	$ 2.83	[3]	$ 2.83	[4]	$ 6.08	[4]
Shares outstanding as of June 30 (in millions)	541,500,000		562,600,000		541,500,000		562,600,000
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)	4,900,000		4,900,000		3,000,000		3,000,000
Stock repurchase
Stock repurchase program, authorized amount									$ 10,000
Stock repurchase program, remaining authorized repurchase amount	$ 4,800				$ 4,800
Common shares repurchased (in shares)	800,000		9,800,000		10,096,006		15,456,651
Cost of repurchase	$ 87	[5]	$ 1,286	[5]	$ 1,250	[6]	$ 2,037	[6]
[1]	Profit attributable to common shareholders.
[2]	Profit attributable to common shareholders.
[3]	Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
[4]	Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
[5]	See Note 12 for additional information.
[6]	See Note 12 for additional information.

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions		Jan. 01, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period			$ (1,815)		$ (1,815)			$ (1,567)
Accumulated other comprehensive income (loss), end of period			(1,815)		(1,815)
Reclassification of certain tax effects from accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt new accounting guidance	[1]	$ 0
Accumulated other comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period		(1,576)	(1,815)	$ (1,499)	(1,815)	$ (1,499)	$ (2,012)	(1,567)	$ (1,588)	$ (1,684)
Other comprehensive income (loss) before reclassifications			148	98	(259)	101
Amounts reclassified from accumulated other comprehensive (income) loss			49	(9)	11	(24)
Other comprehensive income (loss)			197	89	(248)	77
Accumulated other comprehensive income (loss), end of period		(1,576)	(1,815)	(1,499)	(1,815)	(1,499)
Accumulated other comprehensive income (loss) | Reclassification of certain tax effects from accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt new accounting guidance	[1]	108
Foreign currency translation
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period		(1,503)	(1,672)	(1,426)	(1,672)	(1,426)	(1,847)	(1,487)	(1,525)	(1,601)
Other comprehensive income (loss) before reclassifications			177	99	(207)	77
Amounts reclassified from accumulated other comprehensive (income) loss			(2)	0	22	0
Other comprehensive income (loss)			175	99	(185)	77
Accumulated other comprehensive income (loss), end of period		(1,503)	(1,672)	(1,426)	(1,672)	(1,426)
Foreign currency translation | Reclassification of certain tax effects from accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt new accounting guidance		98
Pension and other postretirement benefits
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period		31	(15)	17	(15)	17	(10)	(3)	24	12
Other comprehensive income (loss) before reclassifications			2	0	2	0
Amounts reclassified from accumulated other comprehensive (income) loss			(7)	(7)	(14)	(14)
Other comprehensive income (loss)			(5)	(7)	(12)	(14)
Accumulated other comprehensive income (loss), end of period		31	(15)	17	(15)	17
Pension and other postretirement benefits | Reclassification of certain tax effects from accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt new accounting guidance		19
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period		(89)	(169)	(105)	(169)	(105)	(157)	(97)	(88)	(80)
Other comprehensive income (loss) before reclassifications			(70)	(16)	(75)	(6)
Amounts reclassified from accumulated other comprehensive (income) loss			58	(1)	3	(10)
Other comprehensive income (loss)			(12)	(17)	(72)	(16)
Accumulated other comprehensive income (loss), end of period		(89)	(169)	(105)	(169)	(105)
Derivative financial instruments | Reclassification of certain tax effects from accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt new accounting guidance		(9)
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), start of period		(15)	41	15	41	15	$ 2	$ 20	$ 1	$ (15)
Other comprehensive income (loss) before reclassifications			39	15	21	30
Amounts reclassified from accumulated other comprehensive (income) loss			0	(1)	0	0
Other comprehensive income (loss)			39	14	21	30
Accumulated other comprehensive income (loss), end of period		(15)	$ 41	$ 15	$ 41	$ 15
Available-for-sale securities | Reclassification of certain tax effects from accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss)
Adjustment to adopt new accounting guidance		$ 0
[1]	See Note 12 for additional information.

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2020		Jun. 30, 2019		Jun. 30, 2020		Jun. 30, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)	$ 29		$ 68		$ 251		$ 228
Reclassifications before tax	678		2,178		2,191		4,442
Tax (provision) benefit	(227)		(565)		(652)		(952)
Reclassifications net of tax	458	[1]	1,620	[1]	1,550	[2]	3,501	[2]
Sales of Machinery, Energy & Transportation	9,997		14,432		20,632		27,898
Cost of goods sold	7,113		9,941		14,379		18,944
Interest expense of Financial Products	149		192		324		382
Interest expense excluding Financial Products	135		103		248		206
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications net of tax	(49)		9		(11)		24
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)	2		0		(22)		0
Reclassifications net of tax	2		0		(22)		0
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Tax (provision) benefit	(3)		(3)		(5)		(6)
Reclassifications net of tax	7		7		14		14
Amortization of prior service credit (cost)	10		10		19		20
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Reclassifications before tax	(75)		2		(5)		13
Tax (provision) benefit	17		(1)		2		(3)
Reclassifications net of tax	(58)		1		(3)		10
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts | Financial Products
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)	(43)		(4)		28		2
Interest expense of Financial Products	9		7		20		14
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Foreign exchange contracts | Machinery, Energy & Transportation
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Sales of Machinery, Energy & Transportation	11		0		16		1
Cost of goods sold	(32)		(1)		(43)		(4)
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	(19)		0		(24)		1
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | Interest rate contracts | Machinery, Energy & Transportation
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Interest expense excluding Financial Products	(1)		0		$ (2)		$ (1)
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Other income (expense)	0		1
Reclassifications net of tax	$ 0		$ 1
[1]	Profit attributable to common shareholders.
[2]	Profit attributable to common shareholders.

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
IBAMA allegations
Loss Contingencies
Proposed fine by IBAMA	$ 370,000
IRS investigation
Loss Contingencies
Number of facilities served search and seizure warrants			3
Companies | CADE Investigation
Loss Contingencies
Number of Defendants				18
Subsidiaries of Caterpillar Inc | CADE Investigation
Loss Contingencies
Number of Defendants				2
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

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Estimated annual effective tax rate (as a percent)		31.00%	26.00%
Income tax (expense) benefit reported discretely in the period and excluded from the estimated annual effective tax rate		$ (22)
Gain on remeasurement of pension obligations	$ (122)	132	$ 0
Tax benefit for settlement of stock-based compensation awards		8	26
Tax benefit arising from calculation of the mandatory deemed repatriation of non-U.S. earnings			$ 178
Tax Year Prior Years
Income Tax Contingency
Income tax examination, proposed liability increase/(decrease)	$ 2,300	$ 2,300

Segment Information (Details)

Segment Information (Details)	6 Months Ended
	Jun. 30, 2020group_presidentssegmentsdealers
Segment Reporting Information
Number of group presidents | group_presidents	4
Number of operating segments	5
Useful life to amortize goodwill for segment assets	20 years
Reportable Segments
Segment Reporting Information
Number of operating segments led by Group Presidents	3
Number of operating segments led by Group President responsible for corporate services	1
Number of reportable segments	4
All Other operating segments
Segment Reporting Information
Number of group presidents | group_presidents	1
Number of smaller operating segments led by Group President | group_presidents	1
Number of wholly-owned dealers involved in segment reallocation | dealers	1

Sales and revenues by geographi

Sales and revenues by geographic region (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Sales and revenues by geographic region
Sales and revenues	$ 9,997	$ 14,432	$ 20,632	$ 27,898
Reportable Segments Including Intersegment Eliminations
Sales and revenues by geographic region
Sales and revenues	10,786	15,645	22,339	30,330
Nonreportable Subsegments Including Intersegment Eliminations [Member]
Sales and revenues by geographic region
Sales and revenues	(904)	(1,338)	(1,931)	(2,678)
Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	10,046	14,554	20,769	28,136
Corporate, Non-Segment [Member] | Corporate items and eliminations
Sales and revenues by geographic region
Sales and revenues	(77)	(156)	(193)	(309)
Intersegment Eliminations
Sales and revenues by geographic region
Sales and revenues	0	0	0	0
Intersegment Eliminations | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	740	1,091	1,570	2,194
Intersegment Eliminations | Corporate items and eliminations
Sales and revenues by geographic region
Sales and revenues	(827)	(1,182)	(1,738)	(2,369)
North America
Sales and revenues by geographic region
Sales and revenues	4,386	7,334	9,366	13,857
North America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	4,420	7,431	9,464	14,056
North America | Corporate, Non-Segment [Member] | Corporate items and eliminations
Sales and revenues by geographic region
Sales and revenues	(41)	(111)	(110)	(221)
Latin America
Sales and revenues by geographic region
Sales and revenues	730	1,229	1,622	2,363
Latin America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	739	1,241	1,643	2,385
Latin America | Corporate, Non-Segment [Member] | Corporate items and eliminations
Sales and revenues by geographic region
Sales and revenues	(10)	(13)	(24)	(23)
EAME
Sales and revenues by geographic region
Sales and revenues	2,333	2,806	4,770	5,413
EAME | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	2,337	2,816	4,776	5,424
EAME | Corporate, Non-Segment [Member] | Corporate items and eliminations
Sales and revenues by geographic region
Sales and revenues	(9)	(14)	(22)	(26)
Asia Pacific
Sales and revenues by geographic region
Sales and revenues	2,548	3,063	4,874	6,265
Asia Pacific | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	2,550	3,066	4,886	6,271
Asia Pacific | Corporate, Non-Segment [Member] | Corporate items and eliminations
Sales and revenues by geographic region
Sales and revenues	(17)	(18)	(37)	(39)
Construction Industries | Reportable Segments Including Intersegment Eliminations
Sales and revenues by geographic region
Sales and revenues	4,048	6,467	8,354	12,340
Construction Industries | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	4,032	6,446	8,344	12,298
Construction Industries | Intersegment Eliminations | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	16	21	10	42
Construction Industries | North America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	1,604	3,513	3,689	6,478
Construction Industries | Latin America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	212	392	477	711
Construction Industries | EAME | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	933	1,108	1,822	2,114
Construction Industries | Asia Pacific | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	1,283	1,433	2,356	2,995
Resource Industries | Reportable Segments Including Intersegment Eliminations
Sales and revenues by geographic region
Sales and revenues	1,826	2,819	3,910	5,571
Resource Industries | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	1,710	2,711	3,689	5,358
Resource Industries | Intersegment Eliminations | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	116	108	221	213
Resource Industries | North America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	507	1,058	1,203	2,009
Resource Industries | Latin America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	270	448	590	871
Resource Industries | EAME | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	379	446	774	914
Resource Industries | Asia Pacific | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	554	759	1,122	1,564
Energy & Transportation
Sales and revenues by geographic region
Sales and revenues	3,541	4,524	7,159	8,757
Energy & Transportation | Reportable Segments Including Intersegment Eliminations
Sales and revenues by geographic region
Sales and revenues	4,149	5,486	8,498	10,696
Energy & Transportation | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	3,541	4,524	7,159	8,757
Energy & Transportation | Intersegment Eliminations | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	608	962	1,339	1,939
Energy & Transportation | North America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	1,816	2,297	3,554	4,448
Energy & Transportation | Latin America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	197	325	446	657
Energy & Transportation | EAME | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	929	1,160	1,982	2,192
Energy & Transportation | Asia Pacific | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	599	742	1,177	1,460
Financial Products Segment
Sales and revenues by geographic region
Revenue from Related Parties	88	136	193	267
Financial Products Segment | Reportable Segments Including Intersegment Eliminations
Sales and revenues by geographic region
Sales and revenues	763	873	1,577	1,723
Financial Products Segment | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	763	873	1,577	1,723
Financial Products Segment | Intersegment Eliminations | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	0	0	0	0
Financial Products Segment | North America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	493	563	1,018	1,121
Financial Products Segment | Latin America | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	60	76	130	146
Financial Products Segment | EAME | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	96	102	198	204
Financial Products Segment | Asia Pacific | Operating Segments | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	114	132	231	252
All Other Operating Segments | Nonreportable Subsegments Including Intersegment Eliminations [Member]
Sales and revenues by geographic region
Sales and revenues	115	125	224	246
All Other Operating Segments | Operating Segments | All Other operating segments
Sales and revenues by geographic region
Sales and revenues	28	34	56	71
All Other Operating Segments | Intersegment Eliminations | All Other operating segments
Sales and revenues by geographic region
Sales and revenues	87	91	168	175
All Other Operating Segments | North America | Operating Segments | All Other operating segments
Sales and revenues by geographic region
Sales and revenues	7	14	12	22
All Other Operating Segments | Latin America | Operating Segments | All Other operating segments
Sales and revenues by geographic region
Sales and revenues	1	1	3	1
All Other Operating Segments | EAME | Operating Segments | All Other operating segments
Sales and revenues by geographic region
Sales and revenues	5	4	16	15
All Other Operating Segments | Asia Pacific | Operating Segments | All Other operating segments
Sales and revenues by geographic region
Sales and revenues	$ 15	$ 15	$ 25	$ 33

Energy & Transportation sales (

Energy & Transportation sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Energy and transportation sales
Energy &Transportation External Sales	$ 9,997	$ 14,432	$ 20,632	$ 27,898
Energy & Transportation
Energy and transportation sales
Energy &Transportation External Sales	3,541	4,524	7,159	8,757
Oil and Gas | Energy & Transportation
Energy and transportation sales
Energy &Transportation External Sales	1,027	1,305	1,888	2,436
Power generation | Energy & Transportation
Energy and transportation sales
Energy &Transportation External Sales	895	1,021	1,749	2,057
Industrial | Energy & Transportation
Energy and transportation sales
Energy &Transportation External Sales	678	957	1,479	1,861
Transportation | Energy & Transportation
Energy and transportation sales
Energy &Transportation External Sales	941	1,241	2,043	2,403
Operating Segments | Reportable Segments
Energy and transportation sales
Energy &Transportation External Sales	10,046	14,554	20,769	28,136
Operating Segments | Reportable Segments | Energy & Transportation
Energy and transportation sales
Energy &Transportation External Sales	$ 3,541	$ 4,524	$ 7,159	$ 8,757

Reconciliations of consolidated

Reconciliations of consolidated profit before taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 678	$ 2,178	$ 2,191	$ 4,442
Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	1,442	2,807	3,093	5,517
All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(3)	11	4	36
Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(23)	17	9	41
Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(120)	(149)	(287)	(325)
Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(24)	(58)	(51)	(124)
Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(96)	(103)	(124)	(142)
Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(38)	(8)	(18)	(1)
Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(118)	2	285	(15)
Stock-Based Compensation Expense [Member]
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(67)	(68)	(114)	(113)
Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(119)	(51)	(199)	(115)
Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(60)	(92)	(208)	(48)
Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(80)	(121)	(172)	(250)
Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	(16)	(9)	(27)	(19)
Construction Industries | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	518	1,247	1,158	2,332
Resource Industries | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	152	481	456	1,057
Energy & Transportation | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	624	886	1,226	1,724
Financial Products Segment | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before taxes	$ 148	$ 193	$ 253	$ 404

Reconciliation of assets (Detai

Reconciliation of assets (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Reconciliation of Assets
Segment assets	$ 76,566	$ 78,453
Reportable Segments
Reconciliation of Assets
Segment assets	54,075	55,467
All Other operating segments
Reconciliation of Assets
Segment assets	1,620	1,728
Cash and Short Term Investments
Reconciliation of Assets
Segment assets	8,030	7,299
Deferred Income Taxes
Reconciliation of Assets
Segment assets	1,353	1,294
Goodwill and Intangible Assets
Reconciliation of Assets
Segment assets	4,597	4,435
Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Segment assets	2,460	2,529
Inventory Methodology Differences
Reconciliation of Assets
Segment assets	(2,625)	(2,426)
Liabilities Included in Segment Assets
Reconciliation of Assets
Segment assets	7,701	8,541
Other
Reconciliation of Assets
Segment assets	(645)	(414)
Construction Industries | Reportable Segments
Reconciliation of Assets
Segment assets	4,581	4,601
Resource Industries | Reportable Segments
Reconciliation of Assets
Segment assets	6,281	6,505
Energy & Transportation | Reportable Segments
Reconciliation of Assets
Segment assets	8,943	8,548
Financial Products Segment | Reportable Segments
Reconciliation of Assets
Segment assets	$ 34,270	$ 35,813

Reconciliations of depreciation

Reconciliations of depreciation and amortization (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Reconciliation of Depreciation and amortization
Depreciation and amortization	$ 608	$ 647	$ 1,222	$ 1,288
Reportable Segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	512	548	1,027	1,091
All Other operating segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	63	53	125	105
Cost Centers
Reconciliation of Depreciation and amortization
Depreciation and amortization	32	33	65	65
Other
Reconciliation of Depreciation and amortization
Depreciation and amortization	1	13	5	27
Construction Industries | Reportable Segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	61	74	122	147
Resource Industries | Reportable Segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	104	112	207	224
Energy & Transportation | Reportable Segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	149	155	295	307
Financial Products Segment | Reportable Segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	$ 198	$ 207	$ 403	$ 413

Reconciliations of capital expe

Reconciliations of capital expenditures (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Reconciliation of Capital expenditures
Capital expenditures	$ 450	$ 678	$ 998	$ 1,225
Reportable Segments
Reconciliation of Capital expenditures
Capital expenditures	464	655	835	1,050
All Other operating segments
Reconciliation of Capital expenditures
Capital expenditures	23	22	38	35
Cost Centers
Reconciliation of Capital expenditures
Capital expenditures	6	29	15	49
Timing
Reconciliation of Capital expenditures
Capital expenditures	(14)	(5)	146	129
Other
Reconciliation of Capital expenditures
Capital expenditures	(29)	(23)	(36)	(38)
Construction Industries | Reportable Segments
Reconciliation of Capital expenditures
Capital expenditures	28	41	48	69
Resource Industries | Reportable Segments
Reconciliation of Capital expenditures
Capital expenditures	36	37	53	60
Energy & Transportation | Reportable Segments
Reconciliation of Capital expenditures
Capital expenditures	144	118	231	216
Financial Products Segment | Reportable Segments
Reconciliation of Capital expenditures
Capital expenditures	$ 256	$ 459	$ 503	$ 705

Cat Financial Financing Activ_3

Cat Financial Financing Activities (Details-Allowance for credit losses) - Finance Receivables - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2020	Dec. 31, 2019
Allowance for Credit Loss Activity
Balance at beginning of year	$ 420	$ 507
Adjustment to adopt new accounting guidance	12
Receivables written off	(73)	(281)
Recoveries on receivables previously written off	13	44
Provision for credit losses	146	162
Other	(6)	(12)
Balance at end of period	512	420
Allowance for Credit Losses
Individually evaluated for impairment			$ 223	$ 217
Collectively evaluated for impairment			289	203
Ending Balance	512	507	512	420
Finance Receivables
Individually evaluated for impairment			679	672
Collectively evaluated for impairment			21,174	21,725
Total Finance Receivables			21,853	22,397
Customer
Allowance for Credit Loss Activity
Balance at beginning of year	375	486
Adjustment to adopt new accounting guidance	12
Receivables written off	(73)	(281)
Recoveries on receivables previously written off	13	44
Provision for credit losses	146	138
Other	(6)	(12)
Balance at end of period	467	375
Allowance for Credit Losses
Individually evaluated for impairment			184	178
Collectively evaluated for impairment			283	197
Ending Balance	375	375	467	375
Finance Receivables
Individually evaluated for impairment			601	594
Collectively evaluated for impairment			17,869	18,093
Total Finance Receivables			18,470	18,687
Dealer
Allowance for Credit Loss Activity
Balance at beginning of year	45	21
Adjustment to adopt new accounting guidance	0
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	0	24
Other	0	0
Balance at end of period	45	45
Allowance for Credit Losses
Individually evaluated for impairment			39	39
Collectively evaluated for impairment			6	6
Ending Balance	$ 45	$ 45	45	45
Finance Receivables
Individually evaluated for impairment			78	78
Collectively evaluated for impairment			3,305	3,632
Total Finance Receivables			$ 3,383	$ 3,710

Cat Financial Financing Activ_4

Cat Financial Financing Activities Cat Financing Activities (Details 2 Credit quality- Customer Receivables Aging by origination year -Vintage disclosure) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator
Period after which unpaid installments are considered as past due	30 days
Dealer | Current
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	$ 3,305
Dealer | Latin America | 91 days past due
Financing Receivable, Credit Quality Indicator
2017	78
Finance Receivables
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	21,853	$ 22,397
Finance Receivables | Customer
Financing Receivable, Credit Quality Indicator
2020	3,725
2019	6,613
2018	4,056
2017	1,990
2016	869
Prior	710
Revolving Financing Receivable	507
Total Finance Receivables	18,470	18,687
Finance Receivables | Customer | North America
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		8,152
Finance Receivables | Customer | North America | Current
Financing Receivable, Credit Quality Indicator
2020	1,854
2019	3,032
2018	1,831
2017	814
2016	374
Prior	97
Revolving Financing Receivable	102
Total Finance Receivables	8,104
Finance Receivables | Customer | North America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2020	13
2019	28
2018	20
2017	15
2016	5
Prior	2
Revolving Financing Receivable	0
Total Finance Receivables	83
Finance Receivables | Customer | North America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2020	4
2019	15
2018	14
2017	8
2016	3
Prior	1
Revolving Financing Receivable	0
Total Finance Receivables	45
Finance Receivables | Customer | North America | 91 days past due
Financing Receivable, Credit Quality Indicator
2020	3
2019	24
2018	31
2017	19
2016	15
Prior	6
Revolving Financing Receivable	0
Total Finance Receivables	98
Finance Receivables | Customer | EAME
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		3,084
Finance Receivables | Customer | EAME | Current
Financing Receivable, Credit Quality Indicator
2020	545
2019	1,104
2018	727
2017	336
2016	113
Prior	33
Revolving Financing Receivable	0
Total Finance Receivables	2,858
Finance Receivables | Customer | EAME | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2020	5
2019	13
2018	12
2017	5
2016	2
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	37
Finance Receivables | Customer | EAME | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2020	6
2019	7
2018	2
2017	2
2016	0
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	17
Finance Receivables | Customer | EAME | 91 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	11
2018	14
2017	15
2016	51
Prior	62
Revolving Financing Receivable	0
Total Finance Receivables	153
Finance Receivables | Customer | Asia Pacific
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		2,264
Finance Receivables | Customer | Asia Pacific | Current
Financing Receivable, Credit Quality Indicator
2020	696
2019	941
2018	502
2017	126
2016	17
Prior	7
Revolving Financing Receivable	0
Total Finance Receivables	2,289
Finance Receivables | Customer | Asia Pacific | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2020	4
2019	22
2018	18
2017	5
2016	0
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	49
Finance Receivables | Customer | Asia Pacific | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2020	2
2019	11
2018	8
2017	3
2016	0
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	24
Finance Receivables | Customer | Asia Pacific | 91 days past due
Financing Receivable, Credit Quality Indicator
2020	1
2019	19
2018	18
2017	5
2016	1
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	44
Finance Receivables | Customer | Mining
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		2,290
Finance Receivables | Customer | Mining | Current
Financing Receivable, Credit Quality Indicator
2020	198
2019	655
2018	375
2017	207
2016	124
Prior	188
Revolving Financing Receivable	270
Total Finance Receivables	2,017
Finance Receivables | Customer | Mining | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	0
2018	13
2017	5
2016	0
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	18
Finance Receivables | Customer | Mining | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	1
2018	3
2017	0
2016	0
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	4
Finance Receivables | Customer | Mining | 91 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	12
2018	3
2017	25
2016	0
Prior	0
Revolving Financing Receivable	1
Total Finance Receivables	41
Finance Receivables | Customer | Latin America
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		1,233
Finance Receivables | Customer | Latin America | Current
Financing Receivable, Credit Quality Indicator
2020	286
2019	440
2018	214
2017	74
2016	22
Prior	27
Revolving Financing Receivable	0
Total Finance Receivables	1,063
Finance Receivables | Customer | Latin America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2020	2
2019	6
2018	8
2017	1
2016	1
Prior	1
Revolving Financing Receivable	0
Total Finance Receivables	19
Finance Receivables | Customer | Latin America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	3
2018	9
2017	5
2016	1
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	18
Finance Receivables | Customer | Latin America | 91 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	19
2018	40
2017	29
2016	8
Prior	6
Revolving Financing Receivable	0
Total Finance Receivables	102
Finance Receivables | Customer | Caterpillar Power Finance
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		1,664
Finance Receivables | Customer | Caterpillar Power Finance | Current
Financing Receivable, Credit Quality Indicator
2020	106
2019	250
2018	172
2017	278
2016	99
Prior	143
Revolving Financing Receivable	134
Total Finance Receivables	1,182
Finance Receivables | Customer | Caterpillar Power Finance | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	0
2018	2
2017	0
2016	0
Prior	0
Revolving Financing Receivable	0
Total Finance Receivables	2
Finance Receivables | Customer | Caterpillar Power Finance | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	2
Revolving Financing Receivable	0
Total Finance Receivables	2
Finance Receivables | Customer | Caterpillar Power Finance | 91 days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	0
2018	20
2017	13
2016	33
Prior	135
Revolving Financing Receivable	0
Total Finance Receivables	201
Finance Receivables | Dealer
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	$ 3,383	3,710
Finance Receivables | Dealer | North America
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		2,136
Finance Receivables | Dealer | EAME
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		342
Finance Receivables | Dealer | Asia Pacific
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		437
Finance Receivables | Dealer | Mining
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		4
Finance Receivables | Dealer | Latin America
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		790
Finance Receivables | Dealer | Caterpillar Power Finance
Financing Receivable, Credit Quality Indicator
Total Finance Receivables		$ 1

Cat Financial Financing Activ_5

Cat Financial Financing Activities (Details 3 Credit quality of finance receivables) - Finance Receivables - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Aging related to loans and finance leases
Total Past Due		$ 926
Current		21,471
Total Finance Receivables	$ 21,853	22,397
31-60 days past due
Aging related to loans and finance leases
Total Past Due		198
61-90 days past due
Aging related to loans and finance leases
Total Past Due		101
91 days past due
Aging related to loans and finance leases
Total Past Due		627
Customer
Aging related to loans and finance leases
Total Finance Receivables	18,470	18,687
Customer | North America
Aging related to loans and finance leases
Total Past Due		150
Current		8,002
Total Finance Receivables		8,152
Customer | North America | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		72
Customer | North America | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		23
Customer | North America | 91 days past due
Aging related to loans and finance leases
Total Past Due		55
Customer | EAME
Aging related to loans and finance leases
Total Past Due		202
Current		2,882
Total Finance Receivables		3,084
Customer | EAME | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		30
Customer | EAME | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		31
Customer | EAME | 91 days past due
Aging related to loans and finance leases
Total Past Due		141
Customer | Asia Pacific
Aging related to loans and finance leases
Total Past Due		83
Current		2,181
Total Finance Receivables		2,264
Customer | Asia Pacific | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		40
Customer | Asia Pacific | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		14
Customer | Asia Pacific | 91 days past due
Aging related to loans and finance leases
Total Past Due		29
Customer | Mining
Aging related to loans and finance leases
Total Past Due		24
Current		2,266
Total Finance Receivables		2,290
Customer | Mining | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		5
Customer | Mining | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		0
Customer | Mining | 91 days past due
Aging related to loans and finance leases
Total Past Due		19
Customer | Latin America
Aging related to loans and finance leases
Total Past Due		144
Current		1,089
Total Finance Receivables		1,233
Customer | Latin America | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		41
Customer | Latin America | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		23
Customer | Latin America | 91 days past due
Aging related to loans and finance leases
Total Past Due		80
Customer | Caterpillar Power Finance
Aging related to loans and finance leases
Total Past Due		245
Current		1,419
Total Finance Receivables		1,664
Customer | Caterpillar Power Finance | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		10
Customer | Caterpillar Power Finance | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		10
Customer | Caterpillar Power Finance | 91 days past due
Aging related to loans and finance leases
Total Past Due		225
Dealer
Aging related to loans and finance leases
Total Finance Receivables	$ 3,383	3,710
Dealer | North America
Aging related to loans and finance leases
Total Past Due		0
Current		2,136
Total Finance Receivables		2,136
Dealer | North America | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | North America | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | North America | 91 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | EAME
Aging related to loans and finance leases
Total Past Due		0
Current		342
Total Finance Receivables		342
Dealer | EAME | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | EAME | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | EAME | 91 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Asia Pacific
Aging related to loans and finance leases
Total Past Due		0
Current		437
Total Finance Receivables		437
Dealer | Asia Pacific | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Asia Pacific | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Asia Pacific | 91 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Mining
Aging related to loans and finance leases
Total Past Due		0
Current		4
Total Finance Receivables		4
Dealer | Mining | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Mining | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Mining | 91 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Latin America
Aging related to loans and finance leases
Total Past Due		78
Current		712
Total Finance Receivables		790
Dealer | Latin America | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Latin America | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Latin America | 91 days past due
Aging related to loans and finance leases
Total Past Due		78
Dealer | Caterpillar Power Finance
Aging related to loans and finance leases
Total Past Due		0
Current		1
Total Finance Receivables		1
Dealer | Caterpillar Power Finance | 31-60 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Caterpillar Power Finance | 61-90 days past due
Aging related to loans and finance leases
Total Past Due		0
Dealer | Caterpillar Power Finance | 91 days past due
Aging related to loans and finance leases
Total Past Due		$ 0

Cat Financial Financing Activ_6

Cat Financial Financing Activities (Details 4 impaired finance receivable) - Finance Receivables - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2019
Customer
Impaired finance receivables
Recorded Investment With No Allowance Recorded			$ 94
Unpaid Principal Balance With No Allowance Recorded			94
Related Allowance With No Allowance Recorded			0
Recorded Investment With An Allowance Recorded			500
Unpaid Principal Balance With An Allowance Recorded			512
Related Allowance With An Allowance Recorded			178
Recorded Investment, Total			594
Unpaid Principal Balance, Total			606
Related Allowance, Total			178
Average Recorded Investment With No Allowance Recorded	$ 101	$ 115
Interest Income Recognized With No Allowance Recorded	2	3
Average Recorded Investment With An Allowance Recorded	694	702
Interest Income Recognized With An Allowance Recorded	6	13
Average Recorded Investment, Total	795	817
Interest Income Recognized, Total	8	16
Customer | North America
Impaired finance receivables
Recorded Investment With No Allowance Recorded			6
Unpaid Principal Balance With No Allowance Recorded			6
Related Allowance With No Allowance Recorded			0
Recorded Investment With An Allowance Recorded			30
Unpaid Principal Balance With An Allowance Recorded			30
Related Allowance With An Allowance Recorded			11
Recorded Investment, Total			36
Unpaid Principal Balance, Total			36
Related Allowance, Total			11
Average Recorded Investment With No Allowance Recorded	10	10
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	35	37
Interest Income Recognized With An Allowance Recorded	0	1
Average Recorded Investment, Total	45	47
Interest Income Recognized, Total	0	1
Customer | EAME
Impaired finance receivables
Recorded Investment With No Allowance Recorded			0
Unpaid Principal Balance With No Allowance Recorded			0
Related Allowance With No Allowance Recorded			0
Recorded Investment With An Allowance Recorded			61
Unpaid Principal Balance With An Allowance Recorded			61
Related Allowance With An Allowance Recorded			29
Recorded Investment, Total			61
Unpaid Principal Balance, Total			61
Related Allowance, Total			29
Average Recorded Investment With No Allowance Recorded	1	1
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	94	94
Interest Income Recognized With An Allowance Recorded	0	1
Average Recorded Investment, Total	95	95
Interest Income Recognized, Total	0	1
Customer | Asia Pacific
Impaired finance receivables
Recorded Investment With No Allowance Recorded			0
Unpaid Principal Balance With No Allowance Recorded			0
Related Allowance With No Allowance Recorded			0
Recorded Investment With An Allowance Recorded			8
Unpaid Principal Balance With An Allowance Recorded			8
Related Allowance With An Allowance Recorded			2
Recorded Investment, Total			8
Unpaid Principal Balance, Total			8
Related Allowance, Total			2
Average Recorded Investment With No Allowance Recorded	0	0
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	9	8
Interest Income Recognized With An Allowance Recorded	0	0
Average Recorded Investment, Total	9	8
Interest Income Recognized, Total	0	0
Customer | Mining
Impaired finance receivables
Recorded Investment With No Allowance Recorded			22
Unpaid Principal Balance With No Allowance Recorded			22
Related Allowance With No Allowance Recorded			0
Recorded Investment With An Allowance Recorded			37
Unpaid Principal Balance With An Allowance Recorded			36
Related Allowance With An Allowance Recorded			9
Recorded Investment, Total			59
Unpaid Principal Balance, Total			58
Related Allowance, Total			9
Average Recorded Investment With No Allowance Recorded	29	30
Interest Income Recognized With No Allowance Recorded	1	1
Average Recorded Investment With An Allowance Recorded	39	42
Interest Income Recognized With An Allowance Recorded	0	1
Average Recorded Investment, Total	68	72
Interest Income Recognized, Total	1	2
Customer | Latin America
Impaired finance receivables
Recorded Investment With No Allowance Recorded			8
Unpaid Principal Balance With No Allowance Recorded			8
Related Allowance With No Allowance Recorded			0
Recorded Investment With An Allowance Recorded			58
Unpaid Principal Balance With An Allowance Recorded			58
Related Allowance With An Allowance Recorded			20
Recorded Investment, Total			66
Unpaid Principal Balance, Total			66
Related Allowance, Total			20
Average Recorded Investment With No Allowance Recorded	20	23
Interest Income Recognized With No Allowance Recorded	1	1
Average Recorded Investment With An Allowance Recorded	74	75
Interest Income Recognized With An Allowance Recorded	2	3
Average Recorded Investment, Total	94	98
Interest Income Recognized, Total	3	4
Customer | Caterpillar Power Finance
Impaired finance receivables
Recorded Investment With No Allowance Recorded			58
Unpaid Principal Balance With No Allowance Recorded			58
Related Allowance With No Allowance Recorded			0
Recorded Investment With An Allowance Recorded			306
Unpaid Principal Balance With An Allowance Recorded			319
Related Allowance With An Allowance Recorded			107
Recorded Investment, Total			364
Unpaid Principal Balance, Total			377
Related Allowance, Total			107
Average Recorded Investment With No Allowance Recorded	41	51
Interest Income Recognized With No Allowance Recorded	0	1
Average Recorded Investment With An Allowance Recorded	443	446
Interest Income Recognized With An Allowance Recorded	4	7
Average Recorded Investment, Total	484	497
Interest Income Recognized, Total	$ 4	$ 8
Dealer | Latin America
Impaired finance receivables
Related Allowance With An Allowance Recorded			39
Recorded Investment, Total			78
Related Allowance, Total			$ 39

Cat Financial Financing Activ_7

Cat Financial Financing Activities (Details 5 Non-accrual) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Period after which Collection of Future Income is Considered as Not Probable		120 days
Dealer
Financing Receivable, Nonaccrual [Line Items]
Interest income recognized for finance receivables on non-accrual status	$ 0
Recorded investment, non-accrual finance receivables			$ 78
Customer
Financing Receivable, Nonaccrual [Line Items]
Interest income recognized for finance receivables on non-accrual status	1	$ 5
Finance Receivables | Dealer
Financing Receivable, Nonaccrual [Line Items]
91 Still Accruing	0	0
Finance Receivables | Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	729	729
Amortized Cost, Non-accrual Without an Allowance	25	25
91 Still Accruing	49	49	29
Recorded investment, non-accrual finance receivables			727
Finance Receivables | North America | Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	78	78
Amortized Cost, Non-accrual Without an Allowance	1	1
91 Still Accruing	30	30	15
Recorded investment, non-accrual finance receivables			44
Finance Receivables | EAME | Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	168	168
Amortized Cost, Non-accrual Without an Allowance	0	0
91 Still Accruing	5	5	4
Recorded investment, non-accrual finance receivables			165
Finance Receivables | Asia Pacific | Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	32	32
Amortized Cost, Non-accrual Without an Allowance	0	0
91 Still Accruing	12	12	8
Recorded investment, non-accrual finance receivables			21
Finance Receivables | Mining | Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	43	43
Amortized Cost, Non-accrual Without an Allowance	0	0
91 Still Accruing	0	0	0
Recorded investment, non-accrual finance receivables			47
Finance Receivables | Latin America | Dealer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	78	78
Finance Receivables | Latin America | Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	106	106
Amortized Cost, Non-accrual Without an Allowance	3	3
91 Still Accruing	2	2	2
Recorded investment, non-accrual finance receivables			89
Finance Receivables | Caterpillar Power Finance | Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	302	302
Amortized Cost, Non-accrual Without an Allowance	21	21
91 Still Accruing	$ 0	$ 0	0
Recorded investment, non-accrual finance receivables			$ 361

Cat Financial Financing Activ_8

Cat Financial Financing Activities (Details 6 TDR) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)Contracts	Jun. 30, 2019USD ($)Contracts	Jun. 30, 2020USD ($)Contracts	Jun. 30, 2019USD ($)Contracts
Customer
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	161	22	166	47
Pre-TDR Amortized Cost	$ 71	$ 70	$ 73	$ 128
Post-TDR Amortized Cost	$ 71	$ 69	$ 73	$ 126
TDRs which had been modified within twelve months of the default date
Number of Contracts | Contracts	1	0	6	0
Post-TDR Amortized Cost	$ 0	$ 0	$ 11	$ 0
Customer | North America
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	10	8	10	8
Pre-TDR Amortized Cost	$ 9	$ 5	$ 9	$ 5
Post-TDR Amortized Cost	$ 9	$ 4	$ 9	$ 4
TDRs which had been modified within twelve months of the default date
Number of Contracts | Contracts	1	0	1	0
Post-TDR Amortized Cost	$ 0	$ 0	$ 0	$ 0
Customer | EAME
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	0	2	0	19
Pre-TDR Amortized Cost	$ 0	$ 10	$ 0	$ 17
Post-TDR Amortized Cost	$ 0	$ 10	$ 0	$ 17
TDRs which had been modified within twelve months of the default date
Number of Contracts | Contracts			2	0
Post-TDR Amortized Cost			$ 10	$ 0
Customer | Asia Pacific
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	104	0	104	0
Pre-TDR Amortized Cost	$ 8	$ 0	$ 8	$ 0
Post-TDR Amortized Cost	$ 8	$ 0	$ 8	$ 0
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	40	1	40	1
Pre-TDR Amortized Cost	$ 17	$ 6	$ 17	$ 6
Post-TDR Amortized Cost	$ 17	$ 6	$ 17	$ 6
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	1	4	6	4
Pre-TDR Amortized Cost	$ 0	$ 2	$ 2	$ 2
Post-TDR Amortized Cost	$ 0	$ 2	$ 2	$ 2
TDRs which had been modified within twelve months of the default date
Number of Contracts | Contracts			3	0
Post-TDR Amortized Cost			$ 1	$ 0
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	6	7	6	15
Pre-TDR Amortized Cost	$ 37	$ 47	$ 37	$ 98
Post-TDR Amortized Cost	$ 37	$ 47	$ 37	$ 97
Dealer
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	0	0	0	0
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers (Four) | Customer | Asia Pacific
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	104
Pre-TDR Amortized Cost	$ 8
Post-TDR Amortized Cost	$ 8
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers (Two) | Customer | Mining
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts			40
Pre-TDR Amortized Cost			$ 17
Post-TDR Amortized Cost			$ 17

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Assets
Available-for-sale securities, debt securities	$ 1,610	$ 1,365
Recurring basis
Assets
Available-for-sale securities, debt securities	1,610	1,365
Equity Securities, FV-NI	334	346
Derivative Assets (Liabilities), at Fair Value, Net	(48)	(45)
Total Assets	1,992	1,756
U.S. treasury bonds
Assets
Available-for-sale securities, debt securities	9	9
U.S. treasury bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	9	9
Other U.S. and non-U.S. government bonds
Assets
Available-for-sale securities, debt securities	51	54
Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	51	54
Corporate bonds
Assets
Available-for-sale securities, debt securities	955	856
Corporate bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	955	856
Asset-backed securities
Assets
Available-for-sale securities, debt securities	143	62
Asset-backed securities | Recurring basis
Assets
Available-for-sale securities, debt securities	143	62
U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities, debt securities	381	331
Residential
Assets
Available-for-sale securities, debt securities	6	6
Residential | Recurring basis
Assets
Available-for-sale securities, debt securities	6	6
Commercial
Assets
Available-for-sale securities, debt securities	65	47
Commercial | Recurring basis
Assets
Available-for-sale securities, debt securities	65	47
Large capitalization value | Recurring basis
Assets
Equity Securities, FV-NI	163	187
Smaller company growth | Recurring basis
Assets
Equity Securities, FV-NI	32	33
REIT | Recurring basis
Assets
Equity Securities, FV-NI	139	126
Level 1 | Recurring basis
Assets
Available-for-sale securities, debt securities	9	9
Equity Securities, FV-NI	193	216
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Total Assets	202	225
Level 1 | U.S. treasury bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	9	9
Level 1 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 1 | Corporate bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 1 | Asset-backed securities | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 1 | U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 1 | Residential | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 1 | Commercial | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 1 | Large capitalization value | Recurring basis
Assets
Equity Securities, FV-NI	163	187
Level 1 | Smaller company growth | Recurring basis
Assets
Equity Securities, FV-NI	30	29
Level 1 | REIT | Recurring basis
Assets
Equity Securities, FV-NI	0	0
Level 2 | Recurring basis
Assets
Available-for-sale securities, debt securities	1,601	1,356
Equity Securities, FV-NI	0	0
Derivative Assets (Liabilities), at Fair Value, Net	(48)	(45)
Total Assets	1,649	1,401
Level 2 | U.S. treasury bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	51	54
Level 2 | Corporate bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	955	856
Level 2 | Asset-backed securities | Recurring basis
Assets
Available-for-sale securities, debt securities	143	62
Level 2 | U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities, debt securities	381	331
Level 2 | Residential | Recurring basis
Assets
Available-for-sale securities, debt securities	6	6
Level 2 | Commercial | Recurring basis
Assets
Available-for-sale securities, debt securities	65	47
Level 2 | Large capitalization value | Recurring basis
Assets
Equity Securities, FV-NI	0	0
Level 2 | Smaller company growth | Recurring basis
Assets
Equity Securities, FV-NI	0	0
Level 2 | REIT | Recurring basis
Assets
Equity Securities, FV-NI	0	0
Level 3 | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Equity Securities, FV-NI	2	4
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Total Assets	2	4
Level 3 | U.S. treasury bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 3 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 3 | Corporate bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 3 | Asset-backed securities | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 3 | U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 3 | Residential | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 3 | Commercial | Recurring basis
Assets
Available-for-sale securities, debt securities	0	0
Level 3 | Large capitalization value | Recurring basis
Assets
Equity Securities, FV-NI	0	0
Level 3 | Smaller company growth | Recurring basis
Assets
Equity Securities, FV-NI	2	4
Level 3 | REIT | Recurring basis
Assets
Equity Securities, FV-NI	0	0
Fair Value Measured on Net Asset Value (NAV) | Recurring basis
Assets
Equity Securities, FV-NI	139	126
Total Assets	139	126
Fair Value Measured on Net Asset Value (NAV) | REIT | Recurring basis
Assets
Equity Securities, FV-NI	139	126
Financial Products | Level 3 | Nonrecurring basis
Assets and liabilities measured on a recurring basis at fair value
Fair value of impaired loans	$ 304	$ 343

Fair Value Disclosures (Detai_2

Fair Value Disclosures (Details 2) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Assets
Cash and short-term investments	$ 8,784	$ 8,284
Carrying Amount
Assets
Cash and short-term investments	8,784	8,284
Restricted cash and short-term investments	7	8
Investments in debt and equity securities	1,944	1,711
Finance receivables-net (excluding finance leases)	14,029	14,473
Wholesale inventory receivables-net (excluding finance leases)	1,196	1,105
Foreign currency contracts-net	12	62
Interest rate contracts-net	42	0
Commodity contracts-net	0	3
Liabilities
Short-term borrowings	4,314	5,166
Interest rate contracts-net	0	20
Commodity contracts-net	6	0
Guarantees	5	5
Carrying Amount | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	11,124	9,157
Carrying Amount | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	23,184	23,334
Carrying amount of assets excluded from measurement at fair value
Liabilities
Excluded items: Finance leases and failed sale leasebacks, Carrying Value	7,588	7,800
Level 1 | Fair Value
Assets
Cash and short-term investments	8,784	8,284
Restricted cash and short-term investments	7	8
Liabilities
Short-term borrowings	4,314	5,166
Level 1, 2 and 3 | Fair Value
Assets
Investments in debt and equity securities	1,944	1,711
Level 2 | Fair Value
Assets
Foreign currency contracts-net	12	62
Interest rate contracts-net	42	0
Commodity contracts-net	0	3
Liabilities
Interest rate contracts-net	0	20
Commodity contracts-net	6	0
Level 2 | Fair Value | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	13,978	11,216
Level 2 | Fair Value | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	23,856	23,655
Level 3 | Fair Value
Assets
Finance receivables-net (excluding finance leases)	14,389	14,613
Wholesale inventory receivables-net (excluding finance leases)	1,175	1,076
Liabilities
Guarantees	$ 5	$ 5

Other income (expense) (Details

Other income (expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Other Income and Expenses [Abstract]
Investment and interest income	$ 27	$ 54	$ 70	$ 106
Foreign exchange gains (losses)	(4)	(47)	(79)	(29)
Royalty Income, Nonoperating	23	31	48	56
Net periodic pension and OPEB income (cost), excluding service cost	(63)	24	270	50
Gain (Loss) on securities	37	14	(21)	53
Miscellaneous income (loss)	9	(8)	(37)	(8)
Total	29	$ 68	251	228
Other income (expense) [Line Items]
Gain on remeasurement of pension obligations	$ (122)		$ 132	$ 0

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Restructuring and Related Cost [Abstract]
Restructuring costs	$ 147	$ 110	$ 184	$ 158
Employee Separation Charges [Roll Forward]
Liability balance at beginning of period			48	85	$ 85
Increase in liability (separation charges)			134		48
Reduction in liability (payments)			(95)		(85)
Liability balance at end of period	87		87		$ 48
Employee separations | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs	123	10	134	25
Contract terminations | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs	2	0	3	0
Long-lived asset impairments | Other Operating Income (Expense)
Restructuring and Related Cost [Abstract]
Restructuring costs	14	29	23	36
Other | Cost of Sales
Restructuring and Related Cost [Abstract]
Restructuring costs	$ 8	$ 71	$ 24	$ 97