Caterpillar (CAT) 10-Q 4 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page	6 Months Ended
	Jun. 30, 2021shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
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	547,471,467
Entity Central Index Key	0000018230
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
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
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, 2021		Jun. 30, 2020		Jun. 30, 2021		Jun. 30, 2020
Sales and revenues:
Sales and revenues	$ 12,889		$ 9,997		$ 24,776		$ 20,632
Operating costs:
Cost of goods sold	8,881		7,113		16,893		14,379
Selling, general and administrative expenses	1,364		1,179		2,603		2,300
Research and development expenses	446		341		820		697
Other operating (income) expenses	293		431		616		744
Total operating costs	11,100		9,213		21,173		18,444
Operating profit	1,789		784		3,603		2,188
Other income (expense)	201		29		526		251
Consolidated profit before taxes	1,870		678		3,867		2,191
Provision (benefit) for income taxes	470		227		945		652
Profit of consolidated companies	1,400		451		2,922		1,539
Equity in profit (loss) of unconsolidated affiliated companies	14		8		23		13
Profit of consolidated and affiliated companies	1,414		459		2,945		1,552
Less: Profit (loss) attributable to the noncontrolling interests	1		1		2		2
Profit	$ 1,413	[1]	$ 458	[1]	$ 2,943	[2]	$ 1,550	[2]
Profit per common share (in dollars per share)	$ 2.58		$ 0.84		$ 5.38		$ 2.85
Profit per common share - diluted (in dollars per share)	$ 2.56	[3]	$ 0.84	[3]	$ 5.33	[4]	$ 2.83	[4]
Weighted-average common shares outstanding (millions)
Basic (in shares)	547.9		541.5		547.1		544.5
Diluted (in shares)	552.1	[3]	544.5	[3]	551.8	[4]	548.2	[4]
Machinery, Energy & Transportation
Sales and revenues:
Sales and revenues	$ 12,193		$ 9,310		$ 23,384		$ 19,224
Financial Products
Sales and revenues:
Sales and revenues	696		687		1,392		1,408
Operating costs:
Interest Expense	116		149		241		324
All other excluding Financial Products
Operating costs:
Interest Expense	$ 120		$ 135		$ 262		$ 248
[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 - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Profit of consolidated and affiliated companies	$ 1,414	$ 459	$ 2,945	$ 1,552
Foreign currency translation	99	175	(248)	(185)
Pension and other post retirement benefits	(7)	(5)	(15)	(12)
Derivative financial instruments	43	(12)	12	(72)
Available for sale securities	1	39	(15)	21
Total other comprehensive income (loss), net of tax	136	197	(266)	(248)
Comprehensive income	1,550	656	2,679	1,304
Less: comprehensive income attributable to the noncontrolling interests	1	1	2	2
Comprehensive income attributable to shareholders	$ 1,549	$ 655	$ 2,677	$ 1,302

Consolidated Statement of Finan

Consolidated Statement of Financial Position - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and short-term investments	$ 10,831	$ 9,352
Receivables - trade and other	7,840	7,317
Receivables - finance	9,523	9,463
Prepaid expenses and other current assets	2,080	1,930
Inventories	12,672	11,402
Total current assets	42,946	39,464
Property, plant and equipment - net	12,014	12,401
Long-term receivables - trade and other	1,206	1,185
Long-term receivables - finance	12,590	12,222
Noncurrent deferred and refundable income taxes	1,455	1,523
Intangible assets	1,176	1,308
Goodwill	6,372	6,394
Other assets	3,938	3,827
Total assets	81,697	78,324
Short-term borrowings:
Accounts payable	6,921	6,128
Accrued expenses	3,556	3,642
Accrued wages, salaries and employee benefits	1,759	1,096
Customer advances	1,157	1,108
Dividends payable	608	562
Other current liabilities	2,126	2,017
Long-term debt due within one year:
Total current liabilities	27,508	25,717
Long-term debt due after one year:
Liability for postemployment benefits	6,581	6,872
Other liabilities	4,524	4,358
SPC liabilities in consolidated statement	64,817	62,946
Commitments and contingencies (Notes 11 and 14)
Shareholders' equity
Authorized shares: 2,000,000,000 Issued shares: (6/30/21 and 12/31/20 – 814,894,624) at paid-in amount	6,293	6,230
Treasury stock (6/30/21 – 267,423,157 shares; 12/31/20 – 269,590,777 shares) at cost	(25,240)	(25,178)
Profit employed in the business	36,934	35,167
Accumulated other comprehensive income (loss)	(1,154)	(888)
Noncontrolling interests	47	47
Total shareholders' equity	16,880	15,378
Total liabilities and shareholders' equity	$ 81,697	$ 78,324
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	267,423,157	269,590,777
Machinery, Energy & Transportation
Short-term borrowings:
Short-term borrowings	$ 4	$ 10
Long-term debt due within one year:
Long-term debt due within one year	50	1,420
Long-term debt due after one year:
Long-term Debt due after one year	9,752	9,749
Financial Products
Short-term borrowings:
Short-term borrowings	3,421	2,005
Long-term debt due within one year:
Long-term debt due within one year	7,906	7,729
Long-term debt due after one year:
Long-term Debt due after one year	$ 16,452	$ 16,250

Consolidated Statement of Fin_2

Consolidated Statement of Financial Position (Parentheticals) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
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	267,423,157	269,590,777

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Millions		Total	Adjustments to adopt new accounting guidance	Adjusted beginning balance	Common stock	Common stockAdjustments to adopt new accounting guidance	Common stockAdjusted beginning balance	Treasury stock	Treasury stockAdjustments to adopt new accounting guidance	Treasury stockAdjusted beginning balance	Profit employed in the business	Profit employed in the businessAdjustments to adopt new accounting guidance	Profit employed in the businessAdjusted beginning balance	Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)Adjustments to adopt new accounting guidance	Accumulated other comprehensive income (loss)Adjusted beginning balance	Noncontrolling interests	Noncontrolling interestsAdjustments to adopt new accounting guidance	Noncontrolling interestsAdjusted beginning balance
Balance at Dec. 31, 2019		$ 14,629		$ 14,604	$ 5,935		$ 5,935	$ (24,217)		$ (24,217)	$ 34,437		$ 34,412	$ (1,567)		$ (1,567)	$ 41		$ 41
Balance (Credit losses) at Dec. 31, 2019			$ (25)			$ 0			$ 0			$ (25)			$ 0			$ 0
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		1,552			0			0			1,550			0			2
Foreign currency translation		(185)			0			0			0			(185)			0
Pension and other post retirement benefits		(12)			0			0			0			(12)			0
Derivative financial instruments, net of tax		(72)			0			0			0			(72)			0
Available for sale securities		21			0			0			0			21			0
Dividends, Common Stock, Cash	[1]	(1,121)			0			0			(1,121)			0			0
Common shares issued from treasury stock for stock-based compensation: 322,888 for QTD 2020, 1,519,971 for YTD 2020; and 869,892 for QTD 2021, 3,239,575 for YTD 2021		(10)			(66)			56			0			0			0
Stock-based compensation expense, before tax (in dollars)		114			114			0			0			0			0
Common shares repurchased: 767,822 for QTD 2020, 10,096,006 for YTD 2020; and 1,161,955 for QTD 2021, 1,161,955 for YTD 2021	[2]	(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 shares issued, Shares, from treasury stock for stock-based compensation (in shares)		1,519,971
Common shares repurchased (in shares)		10,096,006
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
Foreign currency translation		175			0			0			0			175			0
Pension and other post retirement benefits		(5)			0			0			0			(5)			0
Derivative financial instruments, net of tax		(12)			0			0			0			(12)			0
Available for sale securities		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: 322,888 for QTD 2020, 1,519,971 for YTD 2020; and 869,892 for QTD 2021, 3,239,575 for YTD 2021		13			(4)			17			0			0			0
Stock-based compensation expense, before tax (in dollars)		67			67			0			0			0			0
Common shares repurchased: 767,822 for QTD 2020, 10,096,006 for YTD 2020; and 1,161,955 for QTD 2021, 1,161,955 for YTD 2021	[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 shares issued, Shares, from treasury stock for stock-based compensation (in shares)		322,888
Common shares repurchased (in shares)		767,822
Common Stock, Dividends, Per Share, Declared		$ 2.06
Balance at Dec. 31, 2020		$ 15,378			6,230			(25,178)			35,167			(888)			47
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		2,945			0			0			2,943			0			2
Foreign currency translation		(248)			0			0			0			(248)			0
Pension and other post retirement benefits		(15)			0			0			0			(15)			0
Derivative financial instruments, net of tax		12			0			0			0			12			0
Available for sale securities		(15)			0			0			0			(15)			0
Dividends, Common Stock, Cash	[1]	(1,176)			0			0			(1,176)			0			0
Distribution to noncontrolling interests		(2)			0			0			0			0			(2)
Common shares issued from treasury stock for stock-based compensation: 322,888 for QTD 2020, 1,519,971 for YTD 2020; and 869,892 for QTD 2021, 3,239,575 for YTD 2021		123			(65)			188			0			0			0
Stock-based compensation expense, before tax (in dollars)		111			111			0			0			0			0
Common shares repurchased: 767,822 for QTD 2020, 10,096,006 for YTD 2020; and 1,161,955 for QTD 2021, 1,161,955 for YTD 2021	[2]	(251)			0			(251)			0			0			0
Other		18			17			1			0			0			0
Balance at Jun. 30, 2021		$ 16,880			6,293			(25,240)			36,934			(1,154)			47
Increase (Decrease) in Shareholders' Equity
Common shares issued, Shares, from treasury stock for stock-based compensation (in shares)		3,329,575
Common shares repurchased (in shares)		1,161,955
Common Stock, Dividends, Per Share, Declared		$ 2.14
Balance at Mar. 31, 2021		$ 16,617			6,215			(25,049)			36,697			(1,290)			44
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		1,414			0			0			1,413			0			1
Foreign currency translation		99			0			0			0			99			0
Pension and other post retirement benefits		(7)			0			0			0			(7)			0
Derivative financial instruments, net of tax		43			0			0			0			43			0
Available for sale securities		1			0			0			0			1			0
Dividends, Common Stock, Cash	[3]	(1,176)			0			0			(1,176)			0			0
Common shares issued from treasury stock for stock-based compensation: 322,888 for QTD 2020, 1,519,971 for YTD 2020; and 869,892 for QTD 2021, 3,239,575 for YTD 2021		58			(2)			60			0			0			0
Stock-based compensation expense, before tax (in dollars)		69			69			0			0			0			0
Common shares repurchased: 767,822 for QTD 2020, 10,096,006 for YTD 2020; and 1,161,955 for QTD 2021, 1,161,955 for YTD 2021	[4]	(251)			0			(251)			0			0			0
Other		13			11			0			0			0			2
Balance at Jun. 30, 2021		$ 16,880			$ 6,293			$ (25,240)			$ 36,934			$ (1,154)			$ 47
Increase (Decrease) in Shareholders' Equity
Common shares issued, Shares, from treasury stock for stock-based compensation (in shares)		869,892
Common shares repurchased (in shares)		1,161,955
Common Stock, Dividends, Per Share, Declared		$ 2.14
[1]	Dividends per share of common stock of $2.14 and $2.06 were declared in the six months ended June 30, 2021 and 2020, respectively.
[2]	See Note 12 for additional information
[3]	Dividends per share of common stock of $2.14 and $2.06 were declared in the three months ended June 30, 2021 and 2020, respectively.
[4]	See Note 12 for additional information.

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$ 2,945	$ 1,552
Adjustments for non-cash items:
Depreciation and amortization	1,173	1,222
Net gain on remeasurement of pension obligations	0	(132)
Provision (benefit) for deferred income taxes	68	(32)
Other	(20)	674
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other	(343)	1,176
Inventories	(1,179)	(145)
Accounts payable	893	(655)
Accrued expenses	22	(253)
Accrued wages, salaries and employee benefits	618	(648)
Customer advances	49	(2)
Other assets - net	(47)	(7)
Other liabilities - net	(133)	(229)
Net cash provided by (used for) operating activities	4,046	2,521
Cash flow from investing activities:
Payments to Acquire Property, Plant, and Equipment	(419)	(472)
Expenditures for equipment leased to others	(681)	(526)
Proceeds from disposals of leased assets and property, plant and equipment	636	382
Additions to finance receivables	(6,203)	(6,712)
Collections of finance receivables	5,580	6,801
Proceeds from sale of finance receivables	27	31
Investments and acquisitions (net of cash acquired)	(398)	(49)
Proceeds from sale of businesses and investments (net of cash sold)	28	13
Proceeds from sale of securities	276	151
Investments in securities	(500)	(369)
Other - net	(63)	7
Net Cash Provided by (Used in) Investing Activities	(1,717)	(743)
Cash flow from financing activities:
Dividends paid	(1,126)	(1,125)
Common stock issued, including treasury shares reissued	123	(10)
Common shares repurchased	(251)	(1,130)
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	494	1,991
Financial Products	4,412	4,168
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(1,902)	(12)
Financial Products	(4,064)	(4,617)
Short-term borrowings - net (original maturities three months or less)	1,460	(477)
Other - net	(2)	(1)
Net cash provided by (used for) financing activities	(856)	(1,213)
Effect of exchange rate changes on cash	3	(66)
Increase (decrease) in cash and short-term investments and restricted cash	1,476	499
Cash and short-term investments and restricted cash at beginning of period	9,366	8,292
Cash and short-term investments and restricted cash at end of period	10,842	8,791
Foreign Plan
Adjustments for non-cash items:
Net gain on remeasurement of pension obligations	$ 0	$ (134)

Nature of Operations, Basis of

Nature of Operations, Basis of Presentation and Change in Accounting Principle	6 Months Ended
	Jun. 30, 2021
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) – We define ME&T as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T’s information relates to the design, manufacturing and marketing of our products. Financial Products – We define Financial Products as our finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment. 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, 2021 and 2020, (b) the consolidated comprehensive income for the three and six months ended June 30, 2021 and 2020, (c) the consolidated financial position at June 30, 2021 and December 31, 2020, (d) the consolidated changes in shareholders’ equity for the three and six months ended June 30, 2021 and 2020 and (e) the consolidated cash flow for the six months ended June 30, 2021 and 2020. 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, 2020 (2020 Form 10-K). The December 31, 2020 financial position data included herein is derived from the audited consolidated financial statements included in the 2020 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.

New Accounting Guidance

New Accounting Guidance	6 Months Ended
	Jun. 30, 2021
Accounting Changes and Error Corrections [Abstract]
New Accounting Guidance	New accounting guidance A. Adoption of new accounting standards Reference rate reform (Accounting Standards Update (ASU) 2020-04) – In March 2020, the Financial Accounting Standards Board (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. In January 2021, we elected to adopt optional expedients impacting our derivative instruments. We continue to evaluate the impact of reference rate reform on our other contracts and assess the impacts of adopting this guidance on our financial statements. We adopted the following ASUs effective January 1, 2021, none of which had a material impact on our financial statements: ASU Description 2020-01 Investments - Equity securities, equity method and joint ventures and derivatives and hedging 2020-08 Codification improvements – Receivables - Nonrefundable fees and other costs 2021-01 Reference rate reform - Scope B. Accounting standards issued but not yet adopted We consider the applicability and impact of all ASUs. We assessed the ASUs 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, 2021
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. Short-term trade receivables from dealers and end users were $6,673 million, $6,310 million and $7,648 million as of June 30, 2021, December 31, 2020 and December 31, 2019, respectively. We recognize short-term 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 $654 million, $657 million and $693 million as of June 30, 2021, December 31, 2020 and December 31, 2019, 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 $1,576 million, $1,526 million and $1,654 million as of June 30, 2021, December 31, 2020 and December 31, 2019, respectively. We reduce the contract liability when revenue is recognized. During the three and six months ended June 30, 2021, we recognized $241 million and $674 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2021. 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. As of June 30, 2021, 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 $5.8 billion, with about one-third of the amount expected to be completed and revenue recognized in the twelve months following June 30, 2021. 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 $69 million and $111 million for the three and six months ended June 30, 2021, respectively, and $67 million and $114 million for the three and six months ended June 30, 2020, respectively. The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2021 and 2020, respectively: Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 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 1,084,821 $ 56.30 $ 219.76 1,913,888 $ 25.98 $ 127.60 RSUs 448,311 $ 219.76 $ 219.76 705,287 $ 127.60 $ 127.60 PRSUs 266,894 $ 219.76 $ 219.76 371,641 $ 127.60 $ 127.60 The following table provides the assumptions used in determining the fair value of the stock-based awards for the six months ended June 30, 2021 and 2020, respectively: Grant Year 2021 2020 Weighted-average dividend yield 2.60% 2.47% Weighted-average volatility 32.9% 25.7% Range of volatilities 29.2% - 45.8% 24.5% - 29.7% Range of risk-free interest rates 0.06% - 1.41% 1.21% - 1.39% Weighted-average expected lives 8 years 8 years

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	6 Months Ended
	Jun. 30, 2021
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 approximately five years. As of June 30, 2021, the maximum term of these outstanding contracts was approximately 60 months. We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, Norwegian Krona, Singapore dollar or Thailand baht forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. We perform designation on a specific exposure basis to support hedge accounting. The remainder of ME&T foreign currency contracts are undesignated. 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, 2021 December 31, 2020 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 59 $ 74 Machinery, Energy & Transportation Long-term receivables – trade and other 64 71 Machinery, Energy & Transportation Accrued expenses (23) (36) Machinery, Energy & Transportation Other liabilities — (1) Financial Products Receivables – trade and other — 1 Financial Products Long-term receivables – trade and other 49 1 Financial Products Accrued expenses (54) (148) Interest rate contracts Machinery, Energy & Transportation Long-term receivables – trade and other — 4 Financial Products Receivables – trade and other — 2 Financial Products Long-term receivables – trade and other 38 57 Financial Products Accrued expenses (8) (5) $ 125 $ 20 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 12 $ 10 Machinery, Energy & Transportation Accrued expenses (5) (1) Financial Products Receivables – trade and other 43 17 Financial Products Long-term receivables – trade and other 6 7 Financial Products Accrued expenses (18) (107) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 56 35 Machinery, Energy & Transportation Long-term receivables – trade and other 3 2 Machinery, Energy & Transportation Accrued expenses (1) — $ 96 $ (37) The total notional amounts of the derivative instruments were as follows: (Millions of dollars) June 30, 2021 December 31, 2020 Machinery, Energy & Transportation $ 3,859 $ 3,553 Financial Products $ 10,575 $ 11,260 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, 2021 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 $ 54 Sales of Machinery, Energy & Transportation $ (10) $ 12,193 Cost of goods sold 10 8,881 Financial Products (38) Interest expense of Financial Products — 116 Other income (expense) (32) 201 Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1) 120 Financial Products 1 Interest expense of Financial Products (6) 116 $ 17 $ (39) Three Months Ended June 30, 2020 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 $ (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) Cash Flow Hedges Six Months Ended June 30, 2021 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 $ 7 Sales of Machinery, Energy & Transportation $ (23) $ 23,384 Cost of goods sold 38 16,893 Financial Products 81 Interest expense of Financial Products 2 241 Other income (expense) 80 526 Interest rate contracts Machinery, Energy & Transportation 7 Interest expense excluding Financial Products (2) 262 Financial Products 1 Interest expense of Financial Products (16) 241 $ 96 $ 79 Six Months Ended June 30, 2020 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 $ (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) 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, 2021 Three Months Ended June 30, 2020 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 11 $ 16 Financial Products Other income (expense) (58) (23) Commodity contracts Machinery, Energy & Transportation Other income (expense) 45 15 $ (2) $ 8 Classification of Gains (Losses) Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 3 $ 13 Financial Products Other income (expense) 28 85 Commodity contracts Machinery, Energy & Transportation Other income (expense) 65 (31) $ 96 $ 67 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, 2021 and December 31, 2020, 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, 2021 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 $ 194 $ — $ 194 $ (29) $ — $ 165 Financial Products 136 — 136 (55) — 81 Total $ 330 $ — $ 330 $ (84) $ — $ 246 June 30, 2021 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 $ (29) $ — $ (29) $ 29 $ — $ — Financial Products (80) — (80) 55 — (25) Total $ (109) $ — $ (109) $ 84 $ — $ (25) December 31, 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 $ 196 $ — $ 196 $ (38) $ — $ 158 Financial Products 85 — 85 (57) — 28 Total $ 281 $ — $ 281 $ (95) $ — $ 186 December 31, 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 $ (38) $ — $ (38) $ 38 $ — $ — Financial Products (260) — (260) 57 — (203) Total $ (298) $ — $ (298) $ 95 $ — $ (203)

Inventories

Inventories	6 Months Ended
	Jun. 30, 2021
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 $ 4,598 $ 4,021 Work-in-process 1,389 1,052 Finished goods 6,405 6,054 Supplies 280 275 Total inventories $ 12,672 $ 11,402

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2021
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, 2021 (Millions of dollars) Weighted Gross Accumulated Net Customer relationships 15 $ 2,457 $ (1,655) $ 802 Intellectual property 12 1,447 (1,129) 318 Other 14 165 (109) 56 Total finite-lived intangible assets 14 $ 4,069 $ (2,893) $ 1,176 December 31, 2020 Weighted Gross Accumulated Net Customer relationships 15 $ 2,493 $ (1,600) $ 893 Intellectual property 12 1,439 (1,073) 366 Other 14 164 (115) 49 Total finite-lived intangible assets 14 $ 4,096 $ (2,788) $ 1,308 Amortization expense for the three and six months ended June 30, 2021 was $76 million and $153 million, respectively. Amortization expense for the three and six months ended June 30, 2020 was $78 million and $158 million, respectively. Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Six Months of 2021 2022 2023 2024 2025 Thereafter $149 $284 $226 $167 $157 $193 B. Goodwill No goodwill was impaired during the six months ended June 30, 2021 or 2020. The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2021 were as follows: (Millions of dollars) December 31, Acquisitions 1 Other Adjustments 2 June 30, Construction Industries Goodwill $ 320 $ — $ (14) $ 306 Impairments (22) — — (22) Net goodwill 298 — (14) 284 Resource Industries Goodwill 4,253 — (32) 4,221 Impairments (1,175) — — (1,175) Net goodwill 3,078 — (32) 3,046 Energy & Transportation Goodwill 2,959 43 (15) 2,987 All Other 3 Goodwill 59 — (4) 55 Consolidated total Goodwill 7,591 43 (65) 7,569 Impairments (1,197) — — (1,197) Net goodwill $ 6,394 $ 43 $ (65) $ 6,372 1 See Note 21 for additional details. 2 Other adjustments are comprised primarily of foreign currency translation. 3 Includes All Other operating segment (See Note 16).

Investments in Debt and Equity

Investments in Debt and Equity Securities	6 Months Ended
	Jun. 30, 2021
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 (AOCI 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 (AOCI in the Consolidated Statement of Financial Position) were as follows: June 30, 2021 December 31, 2020 (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 $ 10 $ — $ 10 $ 10 $ — $ 10 Other U.S. and non-U.S. government bonds 57 1 58 58 1 59 Corporate bonds Corporate bonds 991 37 1,028 962 50 1,012 Asset-backed securities 150 2 152 156 3 159 Mortgage-backed debt securities U.S. governmental agency 346 9 355 362 12 374 Residential 5 — 5 5 — 5 Commercial 80 3 83 60 4 64 Total debt securities $ 1,639 $ 52 $ 1,691 $ 1,613 $ 70 $ 1,683 Available-for-sale investments in an unrealized loss position: June 30, 2021 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds Corporate bonds $ 118 $ 1 $ 5 $ — $ 123 $ 1 Mortgage-backed debt securities U.S. governmental agency 89 1 2 — 91 1 Total $ 207 $ 2 $ 7 $ — $ 214 $ 2 December 31, 2020 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds Corporate bonds $ 13 $ — $ 4 $ — $ 17 $ — Mortgage-backed debt securities U.S. governmental agency 2 — 5 — 7 — Total $ 15 $ — $ 9 $ — $ 24 $ — 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 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. In addition, we did not expect credit-related losses on these investments as of June 30, 2021. Mortgage-Backed Debt Securities The unrealized losses on our investments in U.S. government agency mortgage-backed securities relate to changes in interest rates and credit-related yield spreads since time of purchase. We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis. In addition, we did not expect credit-related losses on these investments as of June 30, 2021. The cost basis and fair value of the available-for-sale debt securities at June 30, 2021, 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, 2021 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 146 $ 148 Due after one year through five years 725 753 Due after five years through ten years 284 292 Due after ten years 53 55 U.S. governmental agency mortgage-backed securities 346 355 Residential mortgage-backed securities 5 5 Commercial mortgage-backed securities 80 83 Total debt securities – available-for-sale $ 1,639 $ 1,691 Sales of available-for-sale securities: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Proceeds from the sale of available-for-sale securities $ 125 $ 66 $ 225 $ 124 Gross gains from the sale of available-for-sale securities 2 1 2 1 Gross losses from the sale of available-for-sale securities — 1 — 1 For the three months ended June 30, 2021 and 2020, the net unrealized gains (losses) for equity securities held at June 30, 2021 and 2020 were $21 million and $26 million, respectively. For the six months ended June 30, 2021 and 2020, the net unrealized gains (losses) for equity securities held at June 30, 2021 and 2020 were $38 million and $(14) million, respectively.

Postretirement Benefits

Postretirement Benefits	6 Months Ended
	Jun. 30, 2021
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 2021 2020 2021 2020 2021 2020 For the three months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 15 $ 14 $ 25 $ 24 Interest cost 83 121 13 21 16 27 Expected return on plan assets (179) (198) (33) (38) (1) (3) 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 $ (96) $ (75) $ (5) $ 138 $ 30 $ 38 For the six months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 29 $ 28 $ 50 $ 47 Interest cost 165 242 27 40 32 53 Expected return on plan assets (358) (396) (65) (73) (3) (6) Amortization of prior service cost (credit) — — — — (20) (19) (Gain) loss on remeasurement of pension obligations 1 — 2 — (134) — — Curtailments, settlements and termination benefits 1 — — — 21 — — Net periodic benefit cost (benefit) 2 $ (193) $ (152) $ (9) $ (118) $ 59 $ 75 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 $54 million and $160 million of contributions to our pension and other postretirement plans during the three and six months ended June 30, 2021, respectively. We currently anticipate full-year 2021 contributions of approximately $310 million. B. Defined contribution benefit costs Total company costs related to our defined contribution plans, which are included in Operating Costs in the Consolidated Statement of Results of Operations, were as follows: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 U.S. Plans $ 115 $ 126 $ 240 $ 145 Non-U.S. Plans 28 20 54 43 $ 143 $ 146 $ 294 $ 188 The increase in the U.S. defined contribution benefit costs for the six months ended June 30, 2021 was primarily due to the fair value adjustments related to our non-qualified deferred compensation plans.

Leases

Leases	6 Months Ended
	Jun. 30, 2021
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 2021 2020 2021 2020 Finance lease revenue $ 124 $ 119 $ 249 $ 244 Operating lease revenue 281 285 575 588 Total $ 405 $ 404 $ 824 $ 832

Guarantees and Product Warranty

Guarantees and Product Warranty	6 Months Ended
	Jun. 30, 2021
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, 2021 and December 31, 2020, 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 $ 955 $ 993 Supplier consortium performance guarantee 261 258 Other guarantees 226 234 Total guarantees $ 1,442 $ 1,485 Cat Financial provides guarantees to purchase 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. 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, 2021 and December 31, 2020, the SPC’s assets of $966 million and $1,026 million, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $965 million and $1,025 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. First Six Months (Millions of dollars) 2021 2020 Warranty liability, beginning of period $ 1,612 $ 1,541 Reduction in liability (payments) (442) (436) Increase in liability (new warranties) 515 428 Warranty liability, end of period $ 1,685 $ 1,533

Profit Per Share

Profit Per Share	6 Months Ended
	Jun. 30, 2021
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) 2021 2020 2021 2020 Profit for the period (A) 1 $ 1,413 $ 458 $ 2,943 $ 1,550 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 547.9 541.5 547.1 544.5 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 4.2 3.0 4.7 3.7 Average common shares outstanding for fully diluted computation (C) 2 552.1 544.5 551.8 548.2 Profit per share of common stock: Assuming no dilution (A/B) $ 2.58 $ 0.84 $ 5.38 $ 2.85 Assuming full dilution (A/C) 2 $ 2.56 $ 0.84 $ 5.33 $ 2.83 Shares outstanding as of June 30 (in millions) 547.5 541.5 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, 2021 and 2020, we excluded 1.1 million and 4.9 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, 2021, approximately $4.5 billion remained available under the 2018 Authorization.

Accumulated other comprehensive

Accumulated other comprehensive income (loss)	6 Months Ended
	Jun. 30, 2021
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 the balances for each component of AOCI were as follows: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Foreign currency translation: Beginning balance (1,257) (1,847) (910) (1,487) Gains (losses) on foreign currency translation 92 168 (231) (206) Less: Tax provision /(benefit) (7) (9) 17 1 Net gains (losses) on foreign currency translation 99 177 (248) (207) (Gains) losses reclassified to earnings — (2) — 22 Less: Tax provision /(benefit) — — — — Net (gains) losses reclassified to earnings — (2) — 22 Other comprehensive income (loss), net of tax 99 175 (248) (185) Ending balance $ (1,158) $ (1,672) $ (1,158) $ (1,672) Pension and other postretirement benefits Beginning balance (40) (10) (32) (3) Current year prior service credit (cost) — 2 — 2 Less: Tax provision /(benefit) — — — — Net current year prior service credit (cost) — 2 — 2 Amortization of prior service (credit) cost (10) (10) (20) (19) Less: Tax provision /(benefit) (3) (3) (5) (5) Net amortization of prior service (credit) cost (7) (7) (15) (14) Other comprehensive income (loss), net of tax (7) (5) (15) (12) Ending balance $ (47) $ (15) $ (47) $ (15) Derivative financial instruments Beginning balance (31) (157) — (97) Gains (losses) deferred 17 (90) 96 (98) Less: Tax provision /(benefit) 3 (20) 19 (23) Net gains (losses) deferred 14 (70) 77 (75) (Gains) losses reclassified to earnings 39 75 (79) 5 Less: Tax provision /(benefit) 10 17 (14) 2 Net (gains) losses reclassified to earnings 29 58 (65) 3 Other comprehensive income (loss), net of tax 43 (12) 12 (72) Ending balance $ 12 $ (169) $ 12 $ (169) Available-for-sale securities Beginning balance 38 2 54 20 Gains (losses) deferred 3 52 (18) 30 Less: Tax provision /(benefit) 1 13 (4) 9 Net gains (losses) deferred 2 39 (14) 21 (Gains) losses reclassified to earnings (2) — (2) — Less: Tax provision /(benefit) (1) — (1) — Net (gains) losses reclassified to earnings (1) — (1) — Other comprehensive income (loss), net of tax 1 39 (15) 21 Ending balance $ 39 $ 41 $ 39 $ 41 Total AOCI Ending Balance at June 30 $ (1,154) $ (1,815) $ (1,154) $ (1,815)

Environmental and legal matters

Environmental and legal matters	6 Months Ended
	Jun. 30, 2021
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 $300,000. 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. 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, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes The provision for income taxes for the six months ended June 30, 2021 reflected an estimated annual tax rate of 26 percent, compared with 31 percent for the six months ended June 30, 2020, excluding the discrete items discussed in the following paragraph. The comparative tax rate for full-year 2020 was approximately 28 percent. The decrease in the estimated annual tax rate from full-year 2020 was primarily related to changes in the expected geographic mix of profits from a tax perspective for 2021. In addition, we recorded a discrete tax benefit of $60 million for the six months ended June 30, 2021, compared with $8 million for the six months ended June 30, 2020, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. A $22 million tax charge was also recorded for the six months ended June 30, 2020, related to the $132 million of remeasurement net gain resulting from the settlements of pension obligations. 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, 2021
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 and General Counsel 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 and General Counsel 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 and quarry and aggregates. 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, autonomous machine capabilities, safety services and mining performance solutions. Resource Industries also manages areas that provide services to other parts of the company, including integrated manufacturing, research and development for drivetrains, hydraulic systems, electronics and software for Cat machines and engines. 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 services 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 and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems used in the electric power generation industry; reciprocating engines and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines supplied to the industrial industry as well as Cat machinery; and diesel-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies; 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, repair/rebuild financing, 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 and maintenance plans 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. 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 33 to 36 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 in 2020 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, 2021 and 2020, 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, 2021 Construction Industries $ 2,498 $ 430 $ 1,291 $ 1,384 $ 5,603 $ 53 $ 5,656 Resource Industries 799 487 525 660 2,471 108 2,579 Energy & Transportation 1,992 250 1,196 682 4,120 855 4,975 Financial Products Segment 488 65 96 125 774 1 — 774 Total sales and revenues from reportable segments 5,777 1,232 3,108 2,851 12,968 1,016 13,984 All Other operating segment 11 1 4 18 34 94 128 Corporate Items and Eliminations (69) (12) (10) (22) (113) (1,110) (1,223) Total Sales and Revenues $ 5,719 $ 1,221 $ 3,102 $ 2,847 $ 12,889 $ — $ 12,889 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 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $92 million and $88 million in the three months ended June 30, 2021 and 2020, 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, 2021 Construction Industries $ 4,624 $ 822 $ 2,372 $ 3,226 $ 11,044 $ 71 $ 11,115 Resource Industries 1,456 892 999 1,221 4,568 227 4,795 Energy & Transportation 3,774 506 2,289 1,209 7,778 1,704 9,482 Financial Products Segment 964 127 196 248 1,535 1 — 1,535 Total sales and revenues from reportable segments 10,818 2,347 5,856 5,904 24,925 2,002 26,927 All Other operating segment 24 1 7 40 72 186 258 Corporate Items and Eliminations (132) (23) (18) (48) (221) (2,188) (2,409) Total Sales and Revenues $ 10,710 $ 2,325 $ 5,845 $ 5,896 $ 24,776 $ — $ 24,776 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 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $176 million and $193 million in the six months ended June 30, 2021 and 2020, respectively. For the three and six months ended June 30, 2021 and 2020, Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Oil and gas $ 1,137 $ 1,027 $ 2,052 $ 1,888 Power generation 1,052 895 2,015 1,749 Industrial 899 678 1,712 1,479 Transportation 1,032 941 1,999 2,043 Energy & Transportation External Sales $ 4,120 $ 3,541 $ 7,778 $ 7,159 Reconciliation of Consolidated profit before taxes: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Profit from reportable segments: Construction Industries $ 1,024 $ 518 $ 2,059 $ 1,158 Resource Industries 361 152 689 456 Energy & Transportation 731 624 1,397 1,226 Financial Products Segment 243 148 487 253 Total profit from reportable segments 2,359 1,442 4,632 3,093 Profit from All Other operating segment (10) (3) (7) 4 Cost centers 11 (23) 32 9 Corporate costs (202) (120) (387) (287) Timing (124) (24) (190) (51) Restructuring costs (25) (96) (89) (124) Methodology differences: Inventory/cost of sales 7 (38) 7 (18) Postretirement benefit expense 86 (118) 154 285 Stock-based compensation expense (69) (67) (111) (114) Financing costs (109) (119) (239) (199) Currency 50 (60) 236 (208) Other income/expense methodology differences (72) (80) (121) (172) Other methodology differences (32) (16) (50) (27) Total consolidated profit before taxes $ 1,870 $ 678 $ 3,867 $ 2,191 Reconciliation of Assets: (Millions of dollars) June 30, 2021 December 31, 2020 Assets from reportable segments: Construction Industries $ 4,416 $ 4,259 Resource Industries 5,848 6,035 Energy & Transportation 9,179 8,582 Financial Products Segment 34,933 34,278 Total assets from reportable segments 54,376 53,154 Assets from All Other operating segment 1,583 1,717 Items not included in segment assets: Cash and short-term investments 10,028 8,822 Deferred income taxes 1,352 1,413 Goodwill and intangible assets 4,924 4,847 Property, plant and equipment – net and other assets 3,110 2,833 Inventory methodology differences (2,707) (2,536) Liabilities included in segment assets 9,387 8,466 Other (356) (392) Total assets $ 81,697 $ 78,324 Reconciliation of Depreciation and amortization: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Depreciation and amortization from reportable segments: Construction Industries $ 59 $ 61 $ 118 $ 122 Resource Industries 101 104 200 207 Energy & Transportation 142 149 284 295 Financial Products Segment 191 198 387 403 Total depreciation and amortization from reportable segments 493 512 989 1,027 Items not included in segment depreciation and amortization: All Other operating segment 60 63 122 125 Cost centers 24 32 50 65 Other 10 1 12 5 Total depreciation and amortization $ 587 $ 608 $ 1,173 $ 1,222 Reconciliation of Capital expenditures: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Capital expenditures from reportable segments: Construction Industries $ 36 $ 28 $ 64 $ 48 Resource Industries 34 36 57 53 Energy & Transportation 143 144 224 231 Financial Products Segment 361 256 589 503 Total capital expenditures from reportable segments 574 464 934 835 Items not included in segment capital expenditures: All Other operating segment 32 23 47 38 Cost centers — 6 19 15 Timing (15) (14) 109 146 Other 5 (29) (9) (36) Total capital expenditures $ 596 $ 450 $ 1,100 $ 998

Cat Financial Financing Activit

Cat Financial Financing Activities	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Cat Financial Financing Activities	Cat Financial financing activities 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 26 months as of June 30, 2021. 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 economic factors. During the three and six months ended June 30, 2021, Cat Financial's forecasts for the markets in which it operates reflected an overall rebound in economic conditions, which had deteriorated due to the COVID-19 pandemic, resulting from a growing economy, improved unemployment rates and a decrease in delinquencies. 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 mostly new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis. In addition, Cat Financial provides a variety of secured and unsecured loans to Caterpillar dealers. 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. In general, Cat Financial's Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to its close working relationships with the dealers and their financial strength. Therefore, Cat Financial made no adjustments to historical loss rates during the three and six months ended June 30, 2021. 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) Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Allowance for Credit Losses: Customer Dealer Total Customer Dealer Total Beginning balance $ 393 $ 44 $ 437 $ 408 $ 45 $ 453 Write-offs (68) — (68) (36) — (36) Recoveries 14 — 14 6 — 6 Provision for credit losses 13 — 13 86 — 86 Other 2 — 2 3 — 3 Ending balance $ 354 $ 44 $ 398 $ 467 $ 45 $ 512 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Allowance for Credit Losses: Customer Dealer Total Customer Dealer Total Beginning balance $ 431 $ 44 $ 475 $ 375 $ 45 $ 420 Adjustment to adopt new accounting guidance 1 — — — 12 — 12 Write-offs (102) — (102) (73) — (73) Recoveries 24 — 24 13 — 13 Provision for credit losses 3 — 3 146 — 146 Other (2) — (2) (6) — (6) Ending balance $ 354 $ 44 $ 398 $ 467 $ 45 $ 512 Individually evaluated $ 183 $ 39 $ 222 $ 184 $ 39 $ 223 Collectively evaluated 171 5 176 283 6 289 Ending Balance $ 354 $ 44 $ 398 $ 467 $ 45 $ 512 Finance Receivables: Individually evaluated $ 492 $ 78 $ 570 $ 601 $ 78 $ 679 Collectively evaluated 19,356 2,585 21,941 17,869 3,305 21,174 Ending Balance $ 19,848 $ 2,663 $ 22,511 $ 18,470 $ 3,383 $ 21,853 1 Adjustment to adopt new accounting guidance related to credit losses. 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 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 tables below summarize 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, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Finance Receivables North America Current $ 2,469 $ 3,224 $ 1,931 $ 957 $ 325 $ 111 $ 117 $ 9,134 31-60 days past due 12 37 25 19 8 3 — 104 61-90 days past due 4 7 5 5 2 2 — 25 91+ days past due 2 17 27 15 10 6 2 79 EAME Current 952 1,275 669 329 126 38 — 3,389 31-60 days past due 6 10 15 2 1 1 — 35 61-90 days past due — 7 4 2 — — — 13 91+ days past due 3 11 7 6 3 61 — 91 Asia/Pacific Current 857 1,088 498 151 33 6 — 2,633 31-60 days past due 4 22 17 8 1 — — 52 61-90 days past due — 8 9 4 — — — 21 91+ days past due — 12 8 8 1 — — 29 Mining Current 433 420 478 272 89 191 71 1,954 31-60 days past due — 3 — — — — — 3 61-90 days past due — — — — — — — — 91+ days past due — 1 2 4 2 — — 9 Latin America Current 315 452 233 93 30 19 — 1,142 31-60 days past due 1 14 6 3 1 — — 25 61-90 days past due — 3 2 1 — — — 6 91+ days past due — 18 11 11 6 8 — 54 Caterpillar Power Finance Current 27 215 132 82 209 180 109 954 31-60 days past due — — — — — — — — 61-90 days past due — — — — — 2 — 2 91+ days past due — 2 — 20 3 69 — 94 Total Customer $ 5,085 $ 6,846 $ 4,079 $ 1,992 $ 850 $ 697 $ 299 $ 19,848 (Millions of dollars) December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Finance Receivables North America Current $ 3,777 $ 2,423 $ 1,344 $ 522 $ 212 $ 27 $ 89 $ 8,394 31-60 days past due 52 49 33 16 7 2 — 159 61-90 days past due 22 25 16 9 2 1 — 75 91+ days past due 14 35 31 20 9 4 2 115 EAME Current 1,605 931 501 203 60 18 — 3,318 31-60 days past due 5 15 3 2 — — — 25 61-90 days past due 1 1 2 1 — — — 5 91+ days past due 7 7 12 4 39 43 — 112 Asia/Pacific Current 1,375 745 321 61 10 3 — 2,515 31-60 days past due 12 22 13 6 — — — 53 61-90 days past due 7 11 7 1 — — — 26 91+ days past due 4 10 9 3 — — — 26 Mining Current 490 571 287 152 92 151 137 1,880 31-60 days past due 5 — 5 1 — — — 11 61-90 days past due — — — — — — — — 91+ days past due — 11 8 2 — — 1 22 Latin America Current 561 348 151 48 13 34 — 1,155 31-60 days past due 3 6 4 3 — — — 16 61-90 days past due 1 7 6 3 2 — — 19 91+ days past due 2 14 11 24 5 4 — 60 Caterpillar Power Finance Current 217 172 111 273 99 117 119 1,108 31-60 days past due — — 6 — — — — 6 61-90 days past due — — — — — 9 — 9 91+ days past due 2 — 20 3 25 79 — 129 Total Customer $ 8,162 $ 5,403 $ 2,901 $ 1,357 $ 575 $ 492 $ 348 $ 19,238 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, 2021, 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, all of which was originated in 2017. As of December 31, 2020, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $81 million that was 91+ days past due in Latin America. Of these past due receivables, $78 million were originated in 2017 and $3 million were originated prior to 2016. 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 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, 2021 December 31, 2020 Amortized Cost Amortized Cost (Millions of dollars) Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 62 $ 1 $ 19 $ 86 $ 1 $ 34 EAME 89 — 2 113 1 1 Asia/Pacific 19 1 11 13 — 13 Mining 9 1 — 21 1 — Latin America 57 — 1 63 — 1 Caterpillar Power Finance 113 — — 170 17 — Total $ 349 $ 3 $ 33 $ 466 $ 20 $ 49 There was $1 million of interest income recognized during the three months ended June 30, 2021 and 2020 for customer finance receivables on non-accrual status. There were $6 million and $5 million of interest income recognized during the six month ended June 30, 2021 and 2020, respectively, for customer finance receivables on non-accrual status. As of June 30, 2021 and December 31, 2020, finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status were $78 million and $81 million, respectively, 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, 2021 and December 31, 2020 and no interest income was recognized on dealer finance receivables on non-accrual status during the three and six months ended June 30, 2021 and 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. Cat Financial individually evaluates TDR contracts and establishes an allowance based on the present value of expected future cash flows discounted at the receivable's effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. There were no finance receivables modified as TDRs during the three and six months ended June 30, 2021 and 2020 for the Dealer portfolio segment. Cat Financial’s finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR Customer North America $ 4 $ 4 $ 9 $ 9 Asia/Pacific — — 8 8 Mining — — 17 17 Latin America 6 6 — — Caterpillar Power Finance 16 16 37 37 Total $ 26 $ 26 $ 71 $ 71 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR North America $ 4 $ 4 $ 9 $ 9 Asia/Pacific — — 8 8 Mining 11 5 17 17 Latin America 6 6 2 2 Caterpillar Power Finance 16 16 37 37 Total $ 37 $ 31 $ 73 $ 73 The Post-TDR amortization costs 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 Six Months Ended June 30 Customer 2021 2020 2021 2020 North America $ — $ — $ 1 $ — EAME — — — 10 Asia/Pacific 2 — 6 — Latin America 15 — 15 1 Caterpillar Power Finance — — 5 — Total $ 17 $ — $ 27 $ 11

Fair Value Disclosures

Fair Value Disclosures	6 Months Ended
	Jun. 30, 2021
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 a standard industry accepted valuation model that utilizes 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 standard industry accepted valuation models that discount 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, 2021 and December 31, 2020 were as follows: June 30, 2021 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets Debt securities Government debt U.S. treasury bonds $ 10 $ — $ — $ — $ 10 Other U.S. and non-U.S. government bonds — 58 — — 58 Corporate bonds Corporate bonds — 1,028 — — 1,028 Asset-backed securities — 152 — — 152 Mortgage-backed debt securities U.S. governmental agency — 355 — — 355 Residential — 5 — — 5 Commercial — 83 — — 83 Total debt securities 10 1,681 — — 1,691 Equity securities Large capitalization value 234 — — — 234 Smaller company growth 40 — — — 40 REIT — — — 152 152 Total equity securities 274 — — 152 426 Derivative financial instruments, net — 221 — — 221 Total assets $ 284 $ 1,902 $ — $ 152 $ 2,338 December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets Debt securities Government debt U.S. treasury bonds $ 10 $ — $ — $ — $ 10 Other U.S. and non-U.S. government bonds — 59 — — 59 Corporate bonds Corporate bonds — 1,012 — — 1,012 Asset-backed securities — 159 — — 159 Mortgage-backed debt securities U.S. governmental agency — 374 — — 374 Residential — 5 — — 5 Commercial — 64 — — 64 Total debt securities 10 1,673 — — 1,683 Equity securities Large capitalization value 199 — — — 199 Smaller company growth 58 — — — 58 REIT — — — 148 148 Total equity securities 257 — — 148 405 Total assets $ 267 $ 1,673 $ — $ 148 $ 2,088 Liabilities Derivative financial instruments, net $ — $ 17 $ — $ — $ 17 Total liabilities $ — $ 17 $ — $ — $ 17 In addition to the amounts above, certain Cat Financial loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated. 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 loans carried at fair value of $157 million and $243 million as of June 30, 2021 and December 31, 2020, 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, 2021 December 31, 2020 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 10,831 $ 10,831 $ 9,352 $ 9,352 1 Restricted cash and short-term investments 236 236 14 14 1 Investments in debt and equity securities 2,117 2,117 2,088 2,088 1 & 2 Note 8 Finance receivables – net (excluding finance leases 1 ) 14,275 14,452 14,028 14,357 3 Note 17 Wholesale inventory receivables – net (excluding finance leases 1 ) 832 806 929 911 3 Foreign currency contracts – net 133 133 — — 2 Note 5 Interest rate contracts – net 30 30 58 58 2 Note 5 Commodity contracts – net 58 58 37 37 2 Note 5 Liabilities Short-term borrowings 3,425 3,425 2,015 2,015 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,802 12,544 11,169 14,549 2 Financial Products 24,358 24,811 23,979 24,614 2 Foreign currency contracts – net — — 112 112 2 Note 5 Guarantees 5 5 5 5 3 Note 11 1 Represents finance leases and failed sale leasebacks of $8,147 million and $7,961 million at June 30, 2021 and December 31, 2020, respectively.

Other Income (expense)

Other Income (expense)	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
Other income (expense)	Other income (expense) Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Investment and interest income $ 21 $ 27 $ 44 $ 70 Foreign exchange gains (losses) 1 (32) (4) 63 (79) License fee income 32 23 57 48 Net periodic pension and OPEB income (cost), excluding service cost 111 (63) 2 222 270 2 Gains (losses) on securities 17 37 42 (21) Miscellaneous income (loss) 52 9 98 (37) Total $ 201 $ 29 $ 526 $ 251 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 settlement of certain pension obligations. See Note 9 for further details.

Restructuring Costs

Restructuring Costs	6 Months Ended
	Jun. 30, 2021
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, 2021 and 2020 were as follows: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Employee separations 1 $ 17 $ 123 $ 62 $ 134 Contract terminations 1 — 2 — 3 Long-lived asset impairments 1 (7) 14 4 23 Other 2 15 8 23 24 Total restructuring costs $ 25 $ 147 $ 89 $ 184 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for accelerated depreciation, equipment relocation, project management and inventory write-downs, all of which are primarily included in Cost of goods sold. For the six months ended June 30, 2021, the restructuring costs were primarily related to actions across the company including strategic actions to address certain product lines. 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. In 2021, all restructuring costs are excluded from segment profit. In 2020, only certain restructuring costs were excluded from segment profit. Restructuring costs included in segment profit were as follows: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Construction Industries $ — $ 4 $ — $ 5 Resource Industries — 15 — 16 Energy & Transportation — 17 — 21 Financial Products Segment — 1 — 1 The following table summarizes the 2021 and 2020 employee separation activity: (Millions of dollars) Six Months Ended June 30 2021 2020 Liability balance, beginning of period $ 164 $ 48 Increase in liability (separation charges) 62 134 Reduction in liability (payments) (82) (95) Liability balance, end of period $ 144 $ 87

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2021
Business Combinations [Abstract]
Acquisitions	Acquisitions SPM Oil & Gas On February 1, 2021, Caterpillar completed the acquisition of varying equity interests and assets of the Weir Group PLC, collectively known as SPM Oil & Gas (SPM). Headquartered near Fort Worth, Texas, SPM Oil & Gas produces a full line of pumps, flow iron, consumable parts, wellhead and pressure control products that are offered via an extensive global network of service centers. This acquisition, included in the Energy & Transportation segment, is consistent with our strategy of providing our customers expanded offerings and services which will now be one of the broadest in the well service industry. The purchase price, net of $22 million of acquired cash, was approximately $361 million. We financed the transaction with available cash. Tangible assets as of the acquisition date were $518 million, recorded at their fair values, and primarily included cash of $22 million, receivables of $101 million, inventories of $159 million, leased assets of $105 million, and property, plant, and equipment of $117 million. Finite-lived intangible assets acquired of $23 million included developed technology and trade names and will be amortized on a straight-line basis over a weighted-average amortization period of approximately 8 years. Liabilities assumed as of the acquisition date were $187 million, recorded at their fair values, and primarily included lease liabilities of $105 million and accounts payable of $33 million. Goodwill of $29 million represented the excess of the consideration transferred over the net assets acquired. These values represent a preliminary allocation of purchase price subject to finalization of post-closing procedures. Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results.

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Policies)	6 Months Ended
	Jun. 30, 2021
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 approximately five years. As of June 30, 2021, the maximum term of these outstanding contracts was approximately 60 months. We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, Norwegian Krona, Singapore dollar or Thailand baht forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. We perform designation on a specific exposure basis to support hedge accounting. The remainder of ME&T foreign currency contracts are undesignated. 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, 2021
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, 2021 and 2020, respectively: Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 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 1,084,821 $ 56.30 $ 219.76 1,913,888 $ 25.98 $ 127.60 RSUs 448,311 $ 219.76 $ 219.76 705,287 $ 127.60 $ 127.60 PRSUs 266,894 $ 219.76 $ 219.76 371,641 $ 127.60 $ 127.60
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, 2021 and 2020, respectively: Grant Year 2021 2020 Weighted-average dividend yield 2.60% 2.47% Weighted-average volatility 32.9% 25.7% Range of volatilities 29.2% - 45.8% 24.5% - 29.7% Range of risk-free interest rates 0.06% - 1.41% 1.21% - 1.39% Weighted-average expected lives 8 years 8 years

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 December 31, 2020 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 59 $ 74 Machinery, Energy & Transportation Long-term receivables – trade and other 64 71 Machinery, Energy & Transportation Accrued expenses (23) (36) Machinery, Energy & Transportation Other liabilities — (1) Financial Products Receivables – trade and other — 1 Financial Products Long-term receivables – trade and other 49 1 Financial Products Accrued expenses (54) (148) Interest rate contracts Machinery, Energy & Transportation Long-term receivables – trade and other — 4 Financial Products Receivables – trade and other — 2 Financial Products Long-term receivables – trade and other 38 57 Financial Products Accrued expenses (8) (5) $ 125 $ 20 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 12 $ 10 Machinery, Energy & Transportation Accrued expenses (5) (1) Financial Products Receivables – trade and other 43 17 Financial Products Long-term receivables – trade and other 6 7 Financial Products Accrued expenses (18) (107) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 56 35 Machinery, Energy & Transportation Long-term receivables – trade and other 3 2 Machinery, Energy & Transportation Accrued expenses (1) — $ 96 $ (37)
Total notional amounts of derivative instruments	The total notional amounts of the derivative instruments were as follows: (Millions of dollars) June 30, 2021 December 31, 2020 Machinery, Energy & Transportation $ 3,859 $ 3,553 Financial Products $ 10,575 $ 11,260
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, 2021 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 $ 54 Sales of Machinery, Energy & Transportation $ (10) $ 12,193 Cost of goods sold 10 8,881 Financial Products (38) Interest expense of Financial Products — 116 Other income (expense) (32) 201 Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (1) 120 Financial Products 1 Interest expense of Financial Products (6) 116 $ 17 $ (39) Three Months Ended June 30, 2020 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 $ (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) Cash Flow Hedges Six Months Ended June 30, 2021 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 $ 7 Sales of Machinery, Energy & Transportation $ (23) $ 23,384 Cost of goods sold 38 16,893 Financial Products 81 Interest expense of Financial Products 2 241 Other income (expense) 80 526 Interest rate contracts Machinery, Energy & Transportation 7 Interest expense excluding Financial Products (2) 262 Financial Products 1 Interest expense of Financial Products (16) 241 $ 96 $ 79 Six Months Ended June 30, 2020 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 $ (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)
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, 2021 Three Months Ended June 30, 2020 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 11 $ 16 Financial Products Other income (expense) (58) (23) Commodity contracts Machinery, Energy & Transportation Other income (expense) 45 15 $ (2) $ 8 Classification of Gains (Losses) Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 3 $ 13 Financial Products Other income (expense) 28 85 Commodity contracts Machinery, Energy & Transportation Other income (expense) 65 (31) $ 96 $ 67
Effect of net settlement provisions of the master netting agreements on derivative assets	The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event was as follows: June 30, 2021 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 $ 194 $ — $ 194 $ (29) $ — $ 165 Financial Products 136 — 136 (55) — 81 Total $ 330 $ — $ 330 $ (84) $ — $ 246 December 31, 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 $ 196 $ — $ 196 $ (38) $ — $ 158 Financial Products 85 — 85 (57) — 28 Total $ 281 $ — $ 281 $ (95) $ — $ 186
Effect of net settlement provisions of the master netting agreements on derivative liabilities	June 30, 2021 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 $ (29) $ — $ (29) $ 29 $ — $ — Financial Products (80) — (80) 55 — (25) Total $ (109) $ — $ (109) $ 84 $ — $ (25) December 31, 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 $ (38) $ — $ (38) $ 38 $ — $ — Financial Products (260) — (260) 57 — (203) Total $ (298) $ — $ (298) $ 95 $ — $ (203)

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2021
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 $ 4,598 $ 4,021 Work-in-process 1,389 1,052 Finished goods 6,405 6,054 Supplies 280 275 Total inventories $ 12,672 $ 11,402

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets were comprised of the following: June 30, 2021 (Millions of dollars) Weighted Gross Accumulated Net Customer relationships 15 $ 2,457 $ (1,655) $ 802 Intellectual property 12 1,447 (1,129) 318 Other 14 165 (109) 56 Total finite-lived intangible assets 14 $ 4,069 $ (2,893) $ 1,176 December 31, 2020 Weighted Gross Accumulated Net Customer relationships 15 $ 2,493 $ (1,600) $ 893 Intellectual property 12 1,439 (1,073) 366 Other 14 164 (115) 49 Total finite-lived intangible assets 14 $ 4,096 $ (2,788) $ 1,308
Expected amortization expense related to intangible assets	Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Six Months of 2021 2022 2023 2024 2025 Thereafter $149 $284 $226 $167 $157 $193
Goodwill acquired	The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2021 were as follows: (Millions of dollars) December 31, Acquisitions 1 Other Adjustments 2 June 30, Construction Industries Goodwill $ 320 $ — $ (14) $ 306 Impairments (22) — — (22) Net goodwill 298 — (14) 284 Resource Industries Goodwill 4,253 — (32) 4,221 Impairments (1,175) — — (1,175) Net goodwill 3,078 — (32) 3,046 Energy & Transportation Goodwill 2,959 43 (15) 2,987 All Other 3 Goodwill 59 — (4) 55 Consolidated total Goodwill 7,591 43 (65) 7,569 Impairments (1,197) — — (1,197) Net goodwill $ 6,394 $ 43 $ (65) $ 6,372 1 See Note 21 for additional details. 2 Other adjustments are comprised primarily of foreign currency translation. 3 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, 2021
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 (AOCI in the Consolidated Statement of Financial Position) were as follows: June 30, 2021 December 31, 2020 (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 $ 10 $ — $ 10 $ 10 $ — $ 10 Other U.S. and non-U.S. government bonds 57 1 58 58 1 59 Corporate bonds Corporate bonds 991 37 1,028 962 50 1,012 Asset-backed securities 150 2 152 156 3 159 Mortgage-backed debt securities U.S. governmental agency 346 9 355 362 12 374 Residential 5 — 5 5 — 5 Commercial 80 3 83 60 4 64 Total debt securities $ 1,639 $ 52 $ 1,691 $ 1,613 $ 70 $ 1,683
Investments in an unrealized loss position that are not other-than-temporarily impaired:	Available-for-sale investments in an unrealized loss position: June 30, 2021 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds Corporate bonds $ 118 $ 1 $ 5 $ — $ 123 $ 1 Mortgage-backed debt securities U.S. governmental agency 89 1 2 — 91 1 Total $ 207 $ 2 $ 7 $ — $ 214 $ 2 December 31, 2020 Less than 12 months 1 12 months or more 1 Total (Millions of dollars) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds Corporate bonds $ 13 $ — $ 4 $ — $ 17 $ — Mortgage-backed debt securities U.S. governmental agency 2 — 5 — 7 — Total $ 15 $ — $ 9 $ — $ 24 $ — 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, 2021, 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, 2021 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 146 $ 148 Due after one year through five years 725 753 Due after five years through ten years 284 292 Due after ten years 53 55 U.S. governmental agency mortgage-backed securities 346 355 Residential mortgage-backed securities 5 5 Commercial mortgage-backed securities 80 83 Total debt securities – available-for-sale $ 1,639 $ 1,691
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) 2021 2020 2021 2020 Proceeds from the sale of available-for-sale securities $ 125 $ 66 $ 225 $ 124 Gross gains from the sale of available-for-sale securities 2 1 2 1 Gross losses from the sale of available-for-sale securities — 1 — 1

Postretirement Benefits (Tables

Postretirement Benefits (Tables)	6 Months Ended
	Jun. 30, 2021
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 2021 2020 2021 2020 2021 2020 For the three months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 15 $ 14 $ 25 $ 24 Interest cost 83 121 13 21 16 27 Expected return on plan assets (179) (198) (33) (38) (1) (3) 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 $ (96) $ (75) $ (5) $ 138 $ 30 $ 38 For the six months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 29 $ 28 $ 50 $ 47 Interest cost 165 242 27 40 32 53 Expected return on plan assets (358) (396) (65) (73) (3) (6) Amortization of prior service cost (credit) — — — — (20) (19) (Gain) loss on remeasurement of pension obligations 1 — 2 — (134) — — Curtailments, settlements and termination benefits 1 — — — 21 — — Net periodic benefit cost (benefit) 2 $ (193) $ (152) $ (9) $ (118) $ 59 $ 75 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, which are included in Operating Costs in the Consolidated Statement of Results of Operations, were as follows: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 U.S. Plans $ 115 $ 126 $ 240 $ 145 Non-U.S. Plans 28 20 54 43 $ 143 $ 146 $ 294 $ 188

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2021
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 2021 2020 2021 2020 Finance lease revenue $ 124 $ 119 $ 249 $ 244 Operating lease revenue 281 285 575 588 Total $ 405 $ 404 $ 824 $ 832

Guarantees and Product Warran_2

Guarantees and Product Warranty (Tables)	6 Months Ended
	Jun. 30, 2021
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 $ 955 $ 993 Supplier consortium performance guarantee 261 258 Other guarantees 226 234 Total guarantees $ 1,442 $ 1,485
Product warranty	We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience. First Six Months (Millions of dollars) 2021 2020 Warranty liability, beginning of period $ 1,612 $ 1,541 Reduction in liability (payments) (442) (436) Increase in liability (new warranties) 515 428 Warranty liability, end of period $ 1,685 $ 1,533

Profit Per Share (Tables)

Profit Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
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) 2021 2020 2021 2020 Profit for the period (A) 1 $ 1,413 $ 458 $ 2,943 $ 1,550 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 547.9 541.5 547.1 544.5 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 4.2 3.0 4.7 3.7 Average common shares outstanding for fully diluted computation (C) 2 552.1 544.5 551.8 548.2 Profit per share of common stock: Assuming no dilution (A/B) $ 2.58 $ 0.84 $ 5.38 $ 2.85 Assuming full dilution (A/C) 2 $ 2.56 $ 0.84 $ 5.33 $ 2.83 Shares outstanding as of June 30 (in millions) 547.5 541.5 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, 2021
Equity [Abstract]
Changes in Accumulated other comprehensive income (loss), net of tax	We present comprehensive income and its components in the Consolidated Statement of Comprehensive Income. Changes in the balances for each component of AOCI were as follows: Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Foreign currency translation: Beginning balance (1,257) (1,847) (910) (1,487) Gains (losses) on foreign currency translation 92 168 (231) (206) Less: Tax provision /(benefit) (7) (9) 17 1 Net gains (losses) on foreign currency translation 99 177 (248) (207) (Gains) losses reclassified to earnings — (2) — 22 Less: Tax provision /(benefit) — — — — Net (gains) losses reclassified to earnings — (2) — 22 Other comprehensive income (loss), net of tax 99 175 (248) (185) Ending balance $ (1,158) $ (1,672) $ (1,158) $ (1,672) Pension and other postretirement benefits Beginning balance (40) (10) (32) (3) Current year prior service credit (cost) — 2 — 2 Less: Tax provision /(benefit) — — — — Net current year prior service credit (cost) — 2 — 2 Amortization of prior service (credit) cost (10) (10) (20) (19) Less: Tax provision /(benefit) (3) (3) (5) (5) Net amortization of prior service (credit) cost (7) (7) (15) (14) Other comprehensive income (loss), net of tax (7) (5) (15) (12) Ending balance $ (47) $ (15) $ (47) $ (15) Derivative financial instruments Beginning balance (31) (157) — (97) Gains (losses) deferred 17 (90) 96 (98) Less: Tax provision /(benefit) 3 (20) 19 (23) Net gains (losses) deferred 14 (70) 77 (75) (Gains) losses reclassified to earnings 39 75 (79) 5 Less: Tax provision /(benefit) 10 17 (14) 2 Net (gains) losses reclassified to earnings 29 58 (65) 3 Other comprehensive income (loss), net of tax 43 (12) 12 (72) Ending balance $ 12 $ (169) $ 12 $ (169) Available-for-sale securities Beginning balance 38 2 54 20 Gains (losses) deferred 3 52 (18) 30 Less: Tax provision /(benefit) 1 13 (4) 9 Net gains (losses) deferred 2 39 (14) 21 (Gains) losses reclassified to earnings (2) — (2) — Less: Tax provision /(benefit) (1) — (1) — Net (gains) losses reclassified to earnings (1) — (1) — Other comprehensive income (loss), net of tax 1 39 (15) 21 Ending balance $ 39 $ 41 $ 39 $ 41 Total AOCI Ending Balance at June 30 $ (1,154) $ (1,815) $ (1,154) $ (1,815)

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Disaggregation of Revenue	For the three and six months ended June 30, 2021 and 2020, 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, 2021 Construction Industries $ 2,498 $ 430 $ 1,291 $ 1,384 $ 5,603 $ 53 $ 5,656 Resource Industries 799 487 525 660 2,471 108 2,579 Energy & Transportation 1,992 250 1,196 682 4,120 855 4,975 Financial Products Segment 488 65 96 125 774 1 — 774 Total sales and revenues from reportable segments 5,777 1,232 3,108 2,851 12,968 1,016 13,984 All Other operating segment 11 1 4 18 34 94 128 Corporate Items and Eliminations (69) (12) (10) (22) (113) (1,110) (1,223) Total Sales and Revenues $ 5,719 $ 1,221 $ 3,102 $ 2,847 $ 12,889 $ — $ 12,889 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 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $92 million and $88 million in the three months ended June 30, 2021 and 2020, 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, 2021 Construction Industries $ 4,624 $ 822 $ 2,372 $ 3,226 $ 11,044 $ 71 $ 11,115 Resource Industries 1,456 892 999 1,221 4,568 227 4,795 Energy & Transportation 3,774 506 2,289 1,209 7,778 1,704 9,482 Financial Products Segment 964 127 196 248 1,535 1 — 1,535 Total sales and revenues from reportable segments 10,818 2,347 5,856 5,904 24,925 2,002 26,927 All Other operating segment 24 1 7 40 72 186 258 Corporate Items and Eliminations (132) (23) (18) (48) (221) (2,188) (2,409) Total Sales and Revenues $ 10,710 $ 2,325 $ 5,845 $ 5,896 $ 24,776 $ — $ 24,776 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 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $176 million and $193 million in the six months ended June 30, 2021 and 2020, respectively. For the three and six months ended June 30, 2021 and 2020, Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Oil and gas $ 1,137 $ 1,027 $ 2,052 $ 1,888 Power generation 1,052 895 2,015 1,749 Industrial 899 678 1,712 1,479 Transportation 1,032 941 1,999 2,043 Energy & Transportation External Sales $ 4,120 $ 3,541 $ 7,778 $ 7,159
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 2021 2020 2021 2020 Profit from reportable segments: Construction Industries $ 1,024 $ 518 $ 2,059 $ 1,158 Resource Industries 361 152 689 456 Energy & Transportation 731 624 1,397 1,226 Financial Products Segment 243 148 487 253 Total profit from reportable segments 2,359 1,442 4,632 3,093 Profit from All Other operating segment (10) (3) (7) 4 Cost centers 11 (23) 32 9 Corporate costs (202) (120) (387) (287) Timing (124) (24) (190) (51) Restructuring costs (25) (96) (89) (124) Methodology differences: Inventory/cost of sales 7 (38) 7 (18) Postretirement benefit expense 86 (118) 154 285 Stock-based compensation expense (69) (67) (111) (114) Financing costs (109) (119) (239) (199) Currency 50 (60) 236 (208) Other income/expense methodology differences (72) (80) (121) (172) Other methodology differences (32) (16) (50) (27) Total consolidated profit before taxes $ 1,870 $ 678 $ 3,867 $ 2,191
Reconciliation of Assets:	Reconciliation of Assets: (Millions of dollars) June 30, 2021 December 31, 2020 Assets from reportable segments: Construction Industries $ 4,416 $ 4,259 Resource Industries 5,848 6,035 Energy & Transportation 9,179 8,582 Financial Products Segment 34,933 34,278 Total assets from reportable segments 54,376 53,154 Assets from All Other operating segment 1,583 1,717 Items not included in segment assets: Cash and short-term investments 10,028 8,822 Deferred income taxes 1,352 1,413 Goodwill and intangible assets 4,924 4,847 Property, plant and equipment – net and other assets 3,110 2,833 Inventory methodology differences (2,707) (2,536) Liabilities included in segment assets 9,387 8,466 Other (356) (392) Total assets $ 81,697 $ 78,324
Reconciliation of Depreciation and amortization:	Reconciliation of Depreciation and amortization: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Depreciation and amortization from reportable segments: Construction Industries $ 59 $ 61 $ 118 $ 122 Resource Industries 101 104 200 207 Energy & Transportation 142 149 284 295 Financial Products Segment 191 198 387 403 Total depreciation and amortization from reportable segments 493 512 989 1,027 Items not included in segment depreciation and amortization: All Other operating segment 60 63 122 125 Cost centers 24 32 50 65 Other 10 1 12 5 Total depreciation and amortization $ 587 $ 608 $ 1,173 $ 1,222
Reconciliation of Capital expenditures:	Reconciliation of Capital expenditures: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Capital expenditures from reportable segments: Construction Industries $ 36 $ 28 $ 64 $ 48 Resource Industries 34 36 57 53 Energy & Transportation 143 144 224 231 Financial Products Segment 361 256 589 503 Total capital expenditures from reportable segments 574 464 934 835 Items not included in segment capital expenditures: All Other operating segment 32 23 47 38 Cost centers — 6 19 15 Timing (15) (14) 109 146 Other 5 (29) (9) (36) Total capital expenditures $ 596 $ 450 $ 1,100 $ 998

Cat Financial Financing Activ_2

Cat Financial Financing Activities (Tables)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Receivables [Abstract]
Allowance for credit losses and total finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Allowance for Credit Losses: Customer Dealer Total Customer Dealer Total Beginning balance $ 393 $ 44 $ 437 $ 408 $ 45 $ 453 Write-offs (68) — (68) (36) — (36) Recoveries 14 — 14 6 — 6 Provision for credit losses 13 — 13 86 — 86 Other 2 — 2 3 — 3 Ending balance $ 354 $ 44 $ 398 $ 467 $ 45 $ 512 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Allowance for Credit Losses: Customer Dealer Total Customer Dealer Total Beginning balance $ 431 $ 44 $ 475 $ 375 $ 45 $ 420 Adjustment to adopt new accounting guidance 1 — — — 12 — 12 Write-offs (102) — (102) (73) — (73) Recoveries 24 — 24 13 — 13 Provision for credit losses 3 — 3 146 — 146 Other (2) — (2) (6) — (6) Ending balance $ 354 $ 44 $ 398 $ 467 $ 45 $ 512 Individually evaluated $ 183 $ 39 $ 222 $ 184 $ 39 $ 223 Collectively evaluated 171 5 176 283 6 289 Ending Balance $ 354 $ 44 $ 398 $ 467 $ 45 $ 512 Finance Receivables: Individually evaluated $ 492 $ 78 $ 570 $ 601 $ 78 $ 679 Collectively evaluated 19,356 2,585 21,941 17,869 3,305 21,174 Ending Balance $ 19,848 $ 2,663 $ 22,511 $ 18,470 $ 3,383 $ 21,853 1 Adjustment to adopt new accounting guidance related to credit losses.
Financing Receivable Credit Quality Indicators		The tables below summarize 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, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Finance Receivables North America Current $ 2,469 $ 3,224 $ 1,931 $ 957 $ 325 $ 111 $ 117 $ 9,134 31-60 days past due 12 37 25 19 8 3 — 104 61-90 days past due 4 7 5 5 2 2 — 25 91+ days past due 2 17 27 15 10 6 2 79 EAME Current 952 1,275 669 329 126 38 — 3,389 31-60 days past due 6 10 15 2 1 1 — 35 61-90 days past due — 7 4 2 — — — 13 91+ days past due 3 11 7 6 3 61 — 91 Asia/Pacific Current 857 1,088 498 151 33 6 — 2,633 31-60 days past due 4 22 17 8 1 — — 52 61-90 days past due — 8 9 4 — — — 21 91+ days past due — 12 8 8 1 — — 29 Mining Current 433 420 478 272 89 191 71 1,954 31-60 days past due — 3 — — — — — 3 61-90 days past due — — — — — — — — 91+ days past due — 1 2 4 2 — — 9 Latin America Current 315 452 233 93 30 19 — 1,142 31-60 days past due 1 14 6 3 1 — — 25 61-90 days past due — 3 2 1 — — — 6 91+ days past due — 18 11 11 6 8 — 54 Caterpillar Power Finance Current 27 215 132 82 209 180 109 954 31-60 days past due — — — — — — — — 61-90 days past due — — — — — 2 — 2 91+ days past due — 2 — 20 3 69 — 94 Total Customer $ 5,085 $ 6,846 $ 4,079 $ 1,992 $ 850 $ 697 $ 299 $ 19,848 (Millions of dollars) December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Finance Receivables North America Current $ 3,777 $ 2,423 $ 1,344 $ 522 $ 212 $ 27 $ 89 $ 8,394 31-60 days past due 52 49 33 16 7 2 — 159 61-90 days past due 22 25 16 9 2 1 — 75 91+ days past due 14 35 31 20 9 4 2 115 EAME Current 1,605 931 501 203 60 18 — 3,318 31-60 days past due 5 15 3 2 — — — 25 61-90 days past due 1 1 2 1 — — — 5 91+ days past due 7 7 12 4 39 43 — 112 Asia/Pacific Current 1,375 745 321 61 10 3 — 2,515 31-60 days past due 12 22 13 6 — — — 53 61-90 days past due 7 11 7 1 — — — 26 91+ days past due 4 10 9 3 — — — 26 Mining Current 490 571 287 152 92 151 137 1,880 31-60 days past due 5 — 5 1 — — — 11 61-90 days past due — — — — — — — — 91+ days past due — 11 8 2 — — 1 22 Latin America Current 561 348 151 48 13 34 — 1,155 31-60 days past due 3 6 4 3 — — — 16 61-90 days past due 1 7 6 3 2 — — 19 91+ days past due 2 14 11 24 5 4 — 60 Caterpillar Power Finance Current 217 172 111 273 99 117 119 1,108 31-60 days past due — — 6 — — — — 6 61-90 days past due — — — — — 9 — 9 91+ days past due 2 — 20 3 25 79 — 129 Total Customer $ 8,162 $ 5,403 $ 2,901 $ 1,357 $ 575 $ 492 $ 348 $ 19,238
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, 2021 December 31, 2020 Amortized Cost Amortized Cost (Millions of dollars) Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 62 $ 1 $ 19 $ 86 $ 1 $ 34 EAME 89 — 2 113 1 1 Asia/Pacific 19 1 11 13 — 13 Mining 9 1 — 21 1 — Latin America 57 — 1 63 — 1 Caterpillar Power Finance 113 — — 170 17 — Total $ 349 $ 3 $ 33 $ 466 $ 20 $ 49 There was $1 million of interest income recognized during the three months ended June 30, 2021 and 2020 for customer finance receivables on non-accrual status. There were $6 million and $5 million of interest income recognized during the six month ended June 30, 2021 and 2020, respectively, for customer finance receivables on non-accrual status.
Finance receivables modified as TDRs	Cat Financial’s finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR Customer North America $ 4 $ 4 $ 9 $ 9 Asia/Pacific — — 8 8 Mining — — 17 17 Latin America 6 6 — — Caterpillar Power Finance 16 16 37 37 Total $ 26 $ 26 $ 71 $ 71 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR North America $ 4 $ 4 $ 9 $ 9 Asia/Pacific — — 8 8 Mining 11 5 17 17 Latin America 6 6 2 2 Caterpillar Power Finance 16 16 37 37 Total $ 37 $ 31 $ 73 $ 73 The Post-TDR amortization costs 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 Six Months Ended June 30 Customer 2021 2020 2021 2020 North America $ — $ — $ 1 $ — EAME — — — 10 Asia/Pacific 2 — 6 — Latin America 15 — 15 1 Caterpillar Power Finance — — 5 — Total $ 17 $ — $ 27 $ 11

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	6 Months Ended
	Jun. 30, 2021
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, 2021 and December 31, 2020 were as follows: June 30, 2021 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets Debt securities Government debt U.S. treasury bonds $ 10 $ — $ — $ — $ 10 Other U.S. and non-U.S. government bonds — 58 — — 58 Corporate bonds Corporate bonds — 1,028 — — 1,028 Asset-backed securities — 152 — — 152 Mortgage-backed debt securities U.S. governmental agency — 355 — — 355 Residential — 5 — — 5 Commercial — 83 — — 83 Total debt securities 10 1,681 — — 1,691 Equity securities Large capitalization value 234 — — — 234 Smaller company growth 40 — — — 40 REIT — — — 152 152 Total equity securities 274 — — 152 426 Derivative financial instruments, net — 221 — — 221 Total assets $ 284 $ 1,902 $ — $ 152 $ 2,338 December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets Debt securities Government debt U.S. treasury bonds $ 10 $ — $ — $ — $ 10 Other U.S. and non-U.S. government bonds — 59 — — 59 Corporate bonds Corporate bonds — 1,012 — — 1,012 Asset-backed securities — 159 — — 159 Mortgage-backed debt securities U.S. governmental agency — 374 — — 374 Residential — 5 — — 5 Commercial — 64 — — 64 Total debt securities 10 1,673 — — 1,683 Equity securities Large capitalization value 199 — — — 199 Smaller company growth 58 — — — 58 REIT — — — 148 148 Total equity securities 257 — — 148 405 Total assets $ 267 $ 1,673 $ — $ 148 $ 2,088 Liabilities Derivative financial instruments, net $ — $ 17 $ — $ — $ 17 Total liabilities $ — $ 17 $ — $ — $ 17
Fair values of financial instruments	Fair values of our financial instruments were as follows: Fair Value of Financial Instruments June 30, 2021 December 31, 2020 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and short-term investments $ 10,831 $ 10,831 $ 9,352 $ 9,352 1 Restricted cash and short-term investments 236 236 14 14 1 Investments in debt and equity securities 2,117 2,117 2,088 2,088 1 & 2 Note 8 Finance receivables – net (excluding finance leases 1 ) 14,275 14,452 14,028 14,357 3 Note 17 Wholesale inventory receivables – net (excluding finance leases 1 ) 832 806 929 911 3 Foreign currency contracts – net 133 133 — — 2 Note 5 Interest rate contracts – net 30 30 58 58 2 Note 5 Commodity contracts – net 58 58 37 37 2 Note 5 Liabilities Short-term borrowings 3,425 3,425 2,015 2,015 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,802 12,544 11,169 14,549 2 Financial Products 24,358 24,811 23,979 24,614 2 Foreign currency contracts – net — — 112 112 2 Note 5 Guarantees 5 5 5 5 3 Note 11 1 Represents finance leases and failed sale leasebacks of $8,147 million and $7,961 million at June 30, 2021 and December 31, 2020, respectively.

Other income (expense) (Tables)

Other income (expense) (Tables)	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
Other income (expense)	Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Investment and interest income $ 21 $ 27 $ 44 $ 70 Foreign exchange gains (losses) 1 (32) (4) 63 (79) License fee income 32 23 57 48 Net periodic pension and OPEB income (cost), excluding service cost 111 (63) 2 222 270 2 Gains (losses) on securities 17 37 42 (21) Miscellaneous income (loss) 52 9 98 (37) Total $ 201 $ 29 $ 526 $ 251 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 settlement of certain pension obligations. See Note 9 for further details.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	6 Months Ended
	Jun. 30, 2021
Restructuring Charges [Abstract]
Restructuring and related costs	Restructuring costs for the three and six months ended June 30, 2021 and 2020 were as follows: (Millions of dollars) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Employee separations 1 $ 17 $ 123 $ 62 $ 134 Contract terminations 1 — 2 — 3 Long-lived asset impairments 1 (7) 14 4 23 Other 2 15 8 23 24 Total restructuring costs $ 25 $ 147 $ 89 $ 184 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for accelerated depreciation, equipment relocation, project management and inventory write-downs, all of which are primarily included in Cost of goods sold. Three Months Ended June 30 Six Months Ended June 30 (Millions of dollars) 2021 2020 2021 2020 Construction Industries $ — $ 4 $ — $ 5 Resource Industries — 15 — 16 Energy & Transportation — 17 — 21 Financial Products Segment — 1 — 1
Summary of separation activity	The following table summarizes the 2021 and 2020 employee separation activity: (Millions of dollars) Six Months Ended June 30 2021 2020 Liability balance, beginning of period $ 164 $ 48 Increase in liability (separation charges) 62 134 Reduction in liability (payments) (82) (95) Liability balance, end of period $ 144 $ 87

Sales and revenue contract in_2

Sales and revenue contract information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Trade receivables from dealers and end users	$ 6,673		$ 6,673		$ 6,310	$ 7,648
Long term trade receivables from dealers and end users	654		654		657	693
Contract liabilities	1,576		1,576		$ 1,526	$ 1,654
Revenue recognized from contract liability balance at beginning of period	241	$ 331	674	$ 699
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Unsatisfied performance obligations with an original contract duration greater than one year	$ 5,800		$ 5,800
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Expected period of performance satisfaction	12 months		12 months
Revenue, Remaining Performance Obligation, Percentage	33.00%		33.00%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Stock-based compensation awards
Stock-based compensation expense, before tax (in dollars)	$ 69	$ 67	$ 111	$ 114
Risk-free interest rates, low end of range (as a percent)			0.06%	1.21%
Risk-free interest rates, high end of range (as a percent)			1.41%	1.39%
Rate of volatilities, Minimum			29.20%	24.50%
Rate of volatilities, Maximum			45.80%	29.70%
Assumptions used in determining the fair value of the stock-based awards
Weighted-average dividend yield (as a percent)			2.60%	2.47%
Weighted-average volatility (as a percent)			32.90%	25.70%
Rate of volatilities, Minimum			29.20%	24.50%
Rate of volatilities, Maximum			45.80%	29.70%
Risk-free interest rates, low end of range (as a percent)			0.06%	1.21%
Risk-free interest rates, high end of range (as a percent)			1.41%	1.39%
Weighted-average expected lives (in years)			8 years	8 years
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars)	$ 235		$ 235
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)			1,084,821	1,913,888
Weighted-Average Fair Value Per Share (in dollars per share)			$ 56.30	$ 25.98
Weighted-Average Grant Date Stock Price (in dollars per share)	$ 219.76	$ 127.60	219.76	127.60
RSUs
Stock-based compensation awards
Weighted-Average Grant Date Stock Price (in dollars per share)	219.76	127.60	$ 219.76	$ 127.60
Shares Granted (in shares)			448,311	705,287
Weighted-Average Fair Value Per Share (in dollars per share)			$ 219.76	$ 127.60
PRSUs
Stock-based compensation awards
Weighted-Average Grant Date Stock Price (in dollars per share)	$ 219.76	$ 127.60	$ 219.76	$ 127.60
Shares Granted (in shares)			266,894	371,641
Weighted-Average Fair Value Per Share (in dollars per share)			$ 219.76	$ 127.60

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details)	6 Months Ended
	Jun. 30, 2021
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 months
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, 2021	Dec. 31, 2020
Derivatives Fair Value
Asset Fair Value	$ 330	$ 281
Liability Fair Value	(109)	(298)
Designated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	125	20
Undesignated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	96	(37)
Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	194	196
Liability Fair Value	(29)	(38)
Machinery, Energy & Transportation | Designated Derivatives | Foreign exchange contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	59	74
Machinery, Energy & Transportation | Designated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	64	71
Machinery, Energy & Transportation | Designated Derivatives | Foreign exchange contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	(23)	(36)
Machinery, Energy & Transportation | Designated Derivatives | Foreign exchange contracts | Other Liabilities
Derivatives Fair Value
Liability Fair Value	0	(1)
Machinery, Energy & Transportation | Designated Derivatives | Interest rate contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	0	4
Machinery, Energy & Transportation | Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	12	10
Machinery, Energy & Transportation | Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	(5)	(1)
Machinery, Energy & Transportation | Undesignated Derivatives | Commodity contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	56	35
Machinery, Energy & Transportation | Undesignated Derivatives | Commodity contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	3	2
Machinery, Energy & Transportation | Undesignated Derivatives | Commodity contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	(1)	0
Financial Products
Derivatives Fair Value
Asset Fair Value	136	85
Liability Fair Value	(80)	(260)
Financial Products | Designated Derivatives | Foreign exchange contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	0	1
Financial Products | Designated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	49	1
Financial Products | Designated Derivatives | Foreign exchange contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	(54)	(148)
Financial Products | Designated Derivatives | Interest rate contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	0	2
Financial Products | Designated Derivatives | Interest rate contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	38	57
Financial Products | Designated Derivatives | Interest rate contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	(8)	(5)
Financial Products | Undesignated Derivatives | Foreign exchange contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	43	17
Financial Products | Undesignated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	6	7
Financial Products | Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	$ (18)	$ (107)

Derivative Financial instrume_6

Derivative Financial instruments and Risk Management- Notional amounts (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Machinery, Energy & Transportation
Derivative
Derivative instruments notional amount	$ 3,859	$ 3,553
Financial Products
Derivative
Derivative instruments notional amount	$ 10,575	$ 11,260

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, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	$ 17	$ (90)	$ 96	$ (98)
Amount of gain (losses) reclassified from AOCI	39	75	(79)	5
Sales and revenues	12,889	9,997	24,776	20,632
Cost of goods sold	8,881	7,113	16,893	14,379
Other income (expense)	201	29	526	251
Designated Derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	17	(90)	96	(98)
Amount of gain (losses) reclassified from AOCI	(39)	(75)	79	(5)
Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Sales and revenues	12,193	9,310	23,384	19,224
Machinery, Energy & Transportation | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	54	(34)	7	(124)
Machinery, Energy & Transportation | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Sales
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(10)	11	(23)	16
Machinery, Energy & Transportation | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Cost of Sales
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	10	(32)	38	(43)
Machinery, Energy & Transportation | Designated Derivatives | Cash Flow Hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	0	(12)	7	(16)
Financial Products
Derivative Instruments, Gain (Loss)
Sales and revenues	696	687	1,392	1,408
Interest Expense	116	149	241	324
Financial Products | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	(38)	(35)	81	66
Financial Products | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Other Nonoperating Income (Expense)
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(32)	(43)	80	28
Financial Products | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	0	9	2	20
Financial Products | Designated Derivatives | Cash Flow Hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	1	(9)	1	(24)
Financial Products | Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(6)	(19)	(16)	(24)
All other excluding Financial Products
Derivative Instruments, Gain (Loss)
Interest Expense	120	135	262	248
All other excluding Financial Products | Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	$ (1)	$ (1)	$ (2)	$ (2)

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, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ (2)	$ 8	$ 96	$ 67
Other Nonoperating Income (Expense) | Financial Products | Foreign exchange contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(58)	(23)	28	85
Other Nonoperating Income (Expense) | Machinery, Energy & Transportation | Foreign exchange contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	11	16	3	13
Other Nonoperating Income (Expense) | Machinery, Energy & Transportation | Commodity contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 45	$ 15	$ 65	$ (31)

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, 2021	Dec. 31, 2020
Offsetting Assets
Gross Amount of Recognized Assets	$ 330	$ 281
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	330	281
Financial Instruments	(84)	(95)
Cash Collateral Received	0	0
Net Amount of Assets	246	186
Machinery, Energy & Transportation
Offsetting Assets
Gross Amount of Recognized Assets	194	196
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	194	196
Financial Instruments	(29)	(38)
Cash Collateral Received	0	0
Net Amount of Assets	165	158
Financial Products
Offsetting Assets
Gross Amount of Recognized Assets	136	85
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	136	85
Financial Instruments	(55)	(57)
Cash Collateral Received	0	0
Net Amount of Assets	$ 81	$ 28

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, 2021	Dec. 31, 2020
Offsetting Liabilities
Gross Amount of Recognized Liabilities	$ (109)	$ (298)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(109)	(298)
Financial Instruments	84	95
Cash collateral pledged	0	0
Net Amount of Liabilities	(25)	(203)
Machinery, Energy & Transportation
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(29)	(38)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(29)	(38)
Financial Instruments	29	38
Cash collateral pledged	0	0
Net Amount of Liabilities	0	0
Financial Products
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(80)	(260)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(80)	(260)
Financial Instruments	55	57
Cash collateral pledged	0	0
Net Amount of Liabilities	$ (25)	$ (203)

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 4,598	$ 4,021
Work-in-process	1,389	1,052
Finished goods	6,405	6,054
Supplies	280	275
Total inventories	$ 12,672	$ 11,402

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Intangible assets
Weighted Amortizable Life (in years)		14 years		14 years
Finite-Lived Intangible Assets, Gross	$ 4,069			$ 4,069		$ 4,096
Finite-Lived Intangible Assets, Accumulated Amortization	(2,893)			(2,893)		(2,788)
Net	1,176			1,176		1,308
Amortization expense	76		$ 78	153	$ 158
Remaining Six Months of 2021	149			149
2022	284			284
2023	226			226
2024	167			167
2025	157			157
Thereafter	193			$ 193
Customer Relationships
Intangible assets
Weighted Amortizable Life (in years)		15 years		15 years
Finite-Lived Intangible Assets, Gross	2,457			$ 2,457		2,493
Finite-Lived Intangible Assets, Accumulated Amortization	(1,655)			(1,655)		(1,600)
Net	802			$ 802		893
Intellectual Property
Intangible assets
Weighted Amortizable Life (in years)		12 years		12 years
Finite-Lived Intangible Assets, Gross	1,447			$ 1,447		1,439
Finite-Lived Intangible Assets, Accumulated Amortization	(1,129)			(1,129)		(1,073)
Net	318			$ 318		366
Other
Intangible assets
Weighted Amortizable Life (in years)		14 years		14 years
Finite-Lived Intangible Assets, Gross	165			$ 165		164
Finite-Lived Intangible Assets, Accumulated Amortization	(109)			(109)		(115)
Net	$ 56			$ 56		$ 49

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	$ 7,591
Impairments, beginning of period	(1,197)
Net goodwill, beginning of period	6,394
Goodwill Acquired	43
Goodwill impairment charge	0	$ 0
Other adjustments	(65)
Goodwill, end of period	7,569
Impairments, end of period	(1,197)
Net goodwill, end of period	6,372
Construction Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	320
Impairments, beginning of period	(22)
Net goodwill, beginning of period	298
Other adjustments	(14)
Goodwill, end of period	306
Impairments, end of period	(22)
Net goodwill, end of period	284
Resource Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	4,253
Impairments, beginning of period	(1,175)
Net goodwill, beginning of period	3,078
Other adjustments	(32)
Goodwill, end of period	4,221
Impairments, end of period	(1,175)
Net goodwill, end of period	3,046
Energy & Transportation
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	2,959
Goodwill Acquired	43
Other adjustments	(15)
Goodwill, end of period	2,987
All Other Operating Segments
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	59
Other adjustments	(4)
Goodwill, end of period	$ 55

Investments in Debt and Equit_3

Investments in Debt and Equity Securities (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Schedule of Investments in Debt and Equity Securities
Cost basis	$ 1,639	$ 1,613
Unrealized pretax net gains (losses)	52	70
Fair Value	1,691	1,683
U.S. treasury bonds
Schedule of Investments in Debt and Equity Securities
Cost basis	10	10
Unrealized pretax net gains (losses)	0	0
Fair Value	10	10
Other U.S. and non-U.S. government bonds
Schedule of Investments in Debt and Equity Securities
Cost basis	57	58
Unrealized pretax net gains (losses)	1	1
Fair Value	58	59
Corporate bonds
Schedule of Investments in Debt and Equity Securities
Cost basis	991	962
Unrealized pretax net gains (losses)	37	50
Fair Value	1,028	1,012
Asset-backed securities
Schedule of Investments in Debt and Equity Securities
Cost basis	150	156
Unrealized pretax net gains (losses)	2	3
Fair Value	152	159
U.S. governmental agency mortgage-backed securities
Schedule of Investments in Debt and Equity Securities
Cost basis	346	362
Unrealized pretax net gains (losses)	9	12
Fair Value	355	374
Residential
Schedule of Investments in Debt and Equity Securities
Cost basis	5	5
Unrealized pretax net gains (losses)	0	0
Fair Value	5	5
Commercial
Schedule of Investments in Debt and Equity Securities
Cost basis	80	60
Unrealized pretax net gains (losses)	3	4
Fair Value	$ 83	$ 64

Investments in Debt and Equit_4

Investments in Debt and Equity Securities (Details 2) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Available-for-sale Securities, Continuous Unrealized Loss Position
Less than 12 months - Fair Value	$ 207	$ 15
Less than 12 months - Unrealized losses	2	0
12 months or more - Fair Value	7	9
12 months or more - Unrealized losses	0	0
Total - Fair Value	214	24
Total - Unrealized losses	2	0
Corporate bonds
Available-for-sale Securities, Continuous Unrealized Loss Position
Less than 12 months - Fair Value	118	13
Less than 12 months - Unrealized losses	1	0
12 months or more - Fair Value	5	4
12 months or more - Unrealized losses	0	0
Total - Fair Value	123	17
Total - Unrealized losses	1	0
U.S. governmental agency mortgage-backed securities
Available-for-sale Securities, Continuous Unrealized Loss Position
Less than 12 months - Fair Value	89	2
Less than 12 months - Unrealized losses	1	0
12 months or more - Fair Value	2	5
12 months or more - Unrealized losses	0	0
Total - Fair Value	91	7
Total - Unrealized losses	$ 1	$ 0

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, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost Basis	$ 146		$ 146
Due after one year through five years, Cost Basis	725		725
Due after five through ten years, Cost Basis	284		284
Due after ten years, Cost Basis	53		53
Due in one year or less, Fair Value	148		148
Due after one year through five years, Fair Value	753		753
Due after five years through ten years, Fair Value	292		292
Due after ten years, Fair Value	55		55
Debt Securities, Available-for-sale, Amortized Cost	1,639		1,639		$ 1,613
Available-for-sale securities, debt securities	1,691		1,691		1,683
Schedule of Investments in Debt and Equity Securities
Unrealized gain (loss) on equity securities	21	$ 26	38	$ (14)
Available-for-sale Securities, Proceeds, Gains and Losses
Proceeds from the sale of available-for-sale securities	125	66	225	124
Gross gains from the sale of available-for-sale securities	2	1	2	1
Gross losses from the sale of available-for-sale securities	0	$ 1	0	$ 1
U.S. governmental agency mortgage-backed securities
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	346		346		362
Available-for-sale securities, debt securities	355		355		374
Residential
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	5		5		5
Available-for-sale securities, debt securities	5		5		5
Commercial
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale, Amortized Cost	80		80		60
Available-for-sale securities, debt securities	$ 83		$ 83		$ 64

Postretirement Benefits (Detail

Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Components of net periodic benefit cost:
(Gain) loss on remeasurement of pension obligations		$ 122	$ 0	$ (132)
Pension and Other Postretirement Benefits
Pension and other postretirement benefit contributions
Contributions to pension and other postretirement benefit plans	$ 54		160
Expected full year contributions to pension and other postretirement benefit plans during the year	310		310
Other Postretirement Benefits Plan
Components of net periodic benefit cost:
Service cost	25	24	50	47
Interest cost	16	27	32	53
Expected return on plan assets	(1)	(3)	(3)	(6)
Amortization of prior service cost / (credit)	(10)	(10)	(20)	(19)
Curtailments, settlements and termination benefits	0	0	0	0
(Gain) loss on remeasurement of pension obligations	0	0	0	0
Net periodic benefit cost (benefit)	30	38	59	75
UNITED STATES
Components of net periodic benefit cost:
Service cost	0	0	0	0
Interest cost	83	121	165	242
Expected return on plan assets	(179)	(198)	(358)	(396)
Amortization of prior service cost / (credit)	0	0	0	0
Curtailments, settlements and termination benefits	0	0	0	0
(Gain) loss on remeasurement of pension obligations	0	2	0	2
Net periodic benefit cost (benefit)	(96)	(75)	(193)	(152)
Foreign Plan
Components of net periodic benefit cost:
Service cost	15	14	29	28
Interest cost	13	21	27	40
Expected return on plan assets	(33)	(38)	(65)	(73)
Amortization of prior service cost / (credit)	0	0	0	0
Curtailments, settlements and termination benefits	0	21	0	21
(Gain) loss on remeasurement of pension obligations	0	120	0	(134)
Net periodic benefit cost (benefit)	$ (5)	$ 138	$ (9)	$ (118)

Postretirement Benefits (Deta_2

Postretirement Benefits (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Defined Contribution Plan
Costs related to defined contribution plans	$ 143	$ 146	$ 294	$ 188
U.S. Plans
Defined Contribution Plan
Costs related to defined contribution plans	115	126	240	145
Non-U.S. Plans
Defined Contribution Plan
Costs related to defined contribution plans	$ 28	$ 20	$ 54	$ 43

Leases Lease revenue (Details)

Leases Lease revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Finance lease revenue	$ 124	$ 119	$ 249	$ 244
Operating lease revenue	281	285	575	588
Total	$ 405	$ 404	$ 824	$ 832

Guarantees and Product Warran_3

Guarantees and Product Warranty (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Related liability	$ 5	$ 5
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,442	1,485
SPC assets in consolidated statement	81,697	78,324
SPC liabilities in consolidated statement	64,817	62,946
Caterpillar dealer performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	955	993
Supplier consortium performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	261	258
Other guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	226	234
Variable Interest Entity, Primary Beneficiary
Guarantor Obligations
SPC assets in consolidated statement	966	1,026
SPC liabilities in consolidated statement	$ 965	$ 1,025

Guarantees and Product Warran_4

Guarantees and Product Warranty (Details 2) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Movement in Standard Product Warranty Accrual
Warranty liability, beginning balance	$ 1,612	$ 1,541
Reduction in liability (payments)	(442)	(436)
Increase in liability (new warranties)	515	428
Warranty liability, ending balance	$ 1,685	$ 1,533

Profit Per Share (Details)

Profit Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2021		Jun. 30, 2020		Jun. 30, 2021		Jun. 30, 2020		Jul. 01, 2018
Earnings Per Share [Abstract]
Profit for the period (A) (in dollars)	$ 1,413	[1]	$ 458	[1]	$ 2,943	[2]	$ 1,550	[2]
Determination of shares (in millions)
Weighted-average number of common shares outstanding (B) (in shares)	547,900,000		541,500,000		547,100,000		544,500,000
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares)	4,200,000		3,000,000		4,700,000		3,700,000
Average common shares outstanding for fully diluted computation (C) (in shares)	552,100,000	[3]	544,500,000	[3]	551,800,000	[4]	548,200,000	[4]
Profit (loss) per share of common stock:
Assuming no dilution (A/B) (in dollars per share)	$ 2.58		$ 0.84		$ 5.38		$ 2.85
Assuming full dilution (A/C) (in dollars per share)	$ 2.56	[3]	$ 0.84	[3]	$ 5.33	[4]	$ 2.83	[4]
Shares outstanding as of June 30 (in millions)	547,500,000		541,500,000		547,500,000		541,500,000
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)	1,100,000		4,900,000		1,100,000		4,900,000
Stock repurchase
Stock repurchase program, authorized amount									$ 10,000
Stock repurchase program, remaining authorized repurchase amount	$ 4,500				$ 4,500
Common shares repurchased (in shares)	1,161,955		767,822		1,161,955		10,096,006
Cost of repurchase	$ 251	[5]	$ 87	[5]	$ 251	[6]	$ 1,250	[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	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment	$ (1,158)	$ (1,672)	$ (1,158)	$ (1,672)
Gains (losses) on foreign currency translation	92	168	(231)	(206)
Less: Tax provision /(benefit)	(7)	(9)	17	1
Net gains (losses) on foreign currency translation	99	177	(248)	(207)
(Gains) losses reclassified to earnings	0	(2)	0	22
Less: Tax provision /(benefit)	0	0	0	0
Net (gains) losses reclassified to earnings	0	(2)	0	22
Other comprehensive income (loss), net of tax	99	175	(248)	(185)
Accumulated Other Comprehensive (Income) Loss, Pension and other postretirement benefits	(47)	(15)	(47)	(15)
Current year prior service credit (cost)	0	2	0	2
Pension and other postretirement benefits, Current year prior service credit (cost), tax (provision)/benefit	0	0	0	0
Net current year prior service credit (cost)	0	2	0	2
Amortization of prior service credit (cost)	(10)	(10)	(20)	(19)
Less: Tax provision /(benefit)	(3)	(3)	(5)	(5)
Net amortization of prior service (credit) cost	(7)	(7)	(15)	(14)
Pension and other post retirement benefits	(7)	(5)	(15)	(12)
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax	12	(169)	12	(169)
Amount of gains (losses) recognized in AOCI	17	(90)	96	(98)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax	3	(20)	19	(23)
Gains (losses) deferred, net of tax	14	(70)	77	(75)
Amount of gain (losses) reclassified from AOCI	39	75	(79)	5
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	10	17	(14)	2
Net (gains) losses reclassified to earnings	29	58	(65)	3
Other comprehensive income (loss), net of tax	43	(12)	12	(72)
AOCI, Debt Securities, Available-for-sale securities	39	41	39	41
Gains (losses) deferred	3	52	(18)	30
Less: Tax provision /(benefit)	1	13	(4)	9
Net gains (losses) deferred	2	39	(14)	21
(Gains) losses reclassified to earnings	(2)	0	(2)	0
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit	(1)	0	(1)	0
Net (gains) losses reclassified to earnings	(1)	0	(1)	0
Other comprehensive income (loss), net of tax	1	39	(15)	21
Accumulated other comprehensive income (loss)	$ (1,154)	$ (1,815)	$ (1,154)	$ (1,815)		$ (888)
Adjusted beginning balance
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment					$ (1,257)	(910)	$ (1,847)	$ (1,487)
Accumulated Other Comprehensive (Income) Loss, Pension and other postretirement benefits					(40)	(32)	(10)	(3)
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax					(31)	0	(157)	(97)
AOCI, Debt Securities, Available-for-sale securities					$ 38	$ 54	$ 2	$ 20

Environmental and legal matte_2

Environmental and legal matters Environmental and legal matters (Details)	Jan. 27, 2020USD ($)	Mar. 03, 2017
IBAMA allegations
Loss Contingencies
Proposed fine by IBAMA	$ 300,000
IRS investigation
Loss Contingencies
Number of facilities served search and seizure warrants		3

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Estimated annual effective tax rate (as a percent)			26.00%	31.00%	28.00%
Income Tax Disclosure
Tax benefit for settlement of stock-based compensation awards			$ 60	$ 8
Income tax (expense) benefit reported discretely in the period and excluded from the estimated annual effective tax rate				(22)
Gain (loss) on remeasurement of pension obligations		$ (122)	0	132
Foreign Plan
Income Tax Disclosure
Gain (loss) on remeasurement of pension obligations	$ 0	$ (120)	0	$ 134
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, 2021segmentsgroup_presidents
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

Sales and revenues by geographi

Sales and revenues by geographic region (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Sales and revenues by geographic region
Sales and revenues	$ 12,889	$ 9,997	$ 24,776	$ 20,632
Reportable Segments
Sales and revenues by geographic region
Sales and revenues	13,984	10,786	26,927	22,339
Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	12,968	10,046	24,925	20,769
Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	1,016	740	2,002	1,570
Corporate Items and Eliminations
Sales and revenues by geographic region
Sales and revenues	(1,223)	(904)	(2,409)	(1,931)
Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(113)	(77)	(221)	(193)
Corporate Items and Eliminations | Intersegment Eliminations
Sales and revenues by geographic region
Sales and revenues	(1,110)	(827)	(2,188)	(1,738)
North America
Sales and revenues by geographic region
Sales and revenues	5,719	4,386	10,710	9,366
North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	5,777	4,420	10,818	9,464
North America | Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(69)	(41)	(132)	(110)
Latin America
Sales and revenues by geographic region
Sales and revenues	1,221	730	2,325	1,622
Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,232	739	2,347	1,643
Latin America | Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(12)	(10)	(23)	(24)
EAME
Sales and revenues by geographic region
Sales and revenues	3,102	2,333	5,845	4,770
EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	3,108	2,337	5,856	4,776
EAME | Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(10)	(9)	(18)	(22)
Asia/Pacific
Sales and revenues by geographic region
Sales and revenues	2,847	2,548	5,896	4,874
Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	2,851	2,550	5,904	4,886
Asia/Pacific | Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(22)	(17)	(48)	(37)
Construction Industries | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	5,656	4,048	11,115	8,354
Construction Industries | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	5,603	4,032	11,044	8,344
Construction Industries | Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	53	16	71	10
Construction Industries | North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	2,498	1,604	4,624	3,689
Construction Industries | Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	430	212	822	477
Construction Industries | EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,291	933	2,372	1,822
Construction Industries | Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,384	1,283	3,226	2,356
Resource Industries | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	2,579	1,826	4,795	3,910
Resource Industries | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	2,471	1,710	4,568	3,689
Resource Industries | Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	108	116	227	221
Resource Industries | North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	799	507	1,456	1,203
Resource Industries | Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	487	270	892	590
Resource Industries | EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	525	379	999	774
Resource Industries | Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	660	554	1,221	1,122
Energy & Transportation
Sales and revenues by geographic region
Sales and revenues	4,120	3,541	7,778	7,159
Energy & Transportation | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	4,975	4,149	9,482	8,498
Energy & Transportation | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	4,120	3,541	7,778	7,159
Energy & Transportation | Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	855	608	1,704	1,339
Energy & Transportation | North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,992	1,816	3,774	3,554
Energy & Transportation | Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	250	197	506	446
Energy & Transportation | EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,196	929	2,289	1,982
Energy & Transportation | Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	682	599	1,209	1,177
Financial Products Segment
Sales and revenues by geographic region
Revenue from Related Parties	92	88	176	193
Financial Products Segment | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	774	763	1,535	1,577
Financial Products Segment | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	774	763	1,535	1,577
Financial Products Segment | Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	0	0	0	0
Financial Products Segment | North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	488	493	964	1,018
Financial Products Segment | Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	65	60	127	130
Financial Products Segment | EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	96	96	196	198
Financial Products Segment | Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	125	114	248	231
All Other Operating Segments
Sales and revenues by geographic region
Sales and revenues	128	115	258	224
All Other Operating Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	34	28	72	56
All Other Operating Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	94	87	186	168
All Other Operating Segments | North America | Operating Segments
Sales and revenues by geographic region
Sales and revenues	11	7	24	12
All Other Operating Segments | Latin America | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1	1	1	3
All Other Operating Segments | EAME | Operating Segments
Sales and revenues by geographic region
Sales and revenues	4	5	7	16
All Other Operating Segments | Asia/Pacific | Operating Segments
Sales and revenues by geographic region
Sales and revenues	$ 18	$ 15	$ 40	$ 25

Energy & Transportation sales (

Energy & Transportation sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Energy and transportation sales
Sales and revenues	$ 12,889	$ 9,997	$ 24,776	$ 20,632
Energy & Transportation
Energy and transportation sales
Sales and revenues	4,120	3,541	7,778	7,159
Energy & Transportation | Oil And Gas Customer
Energy and transportation sales
Sales and revenues	1,137	1,027	2,052	1,888
Energy & Transportation | Power generation
Energy and transportation sales
Sales and revenues	1,052	895	2,015	1,749
Energy & Transportation | Industrial
Energy and transportation sales
Sales and revenues	899	678	1,712	1,479
Energy & Transportation | Transportation
Energy and transportation sales
Sales and revenues	$ 1,032	$ 941	$ 1,999	$ 2,043

Reconciliations of consolidated

Reconciliations of consolidated profit before taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	$ 1,870	$ 678	$ 3,867	$ 2,191
Operating Segments | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	2,359	1,442	4,632	3,093
Operating Segments | Reportable Segments | Construction Industries
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	1,024	518	2,059	1,158
Operating Segments | Reportable Segments | Resource Industries
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	361	152	689	456
Operating Segments | Reportable Segments | Energy & Transportation
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	731	624	1,397	1,226
Operating Segments | Reportable Segments | Financial Products Segment
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	243	148	487	253
Operating Segments | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(10)	(3)	(7)	4
Intersegment Eliminations | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	11	(23)	32	9
Intersegment Eliminations | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(202)	(120)	(387)	(287)
Intersegment Eliminations | Timing
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(124)	(24)	(190)	(51)
Intersegment Eliminations | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(25)	(96)	(89)	(124)
Intersegment Eliminations | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	7	(38)	7	(18)
Intersegment Eliminations | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	86	(118)	154	285
Intersegment Eliminations | Stock-Based Compensation Expense
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(69)	(67)	(111)	(114)
Intersegment Eliminations | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(109)	(119)	(239)	(199)
Intersegment Eliminations | Currency
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	50	(60)	236	(208)
Intersegment Eliminations | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(72)	(80)	(121)	(172)
Intersegment Eliminations | Other
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	$ (32)	$ (16)	$ (50)	$ (27)

Reconciliation of assets (Detai

Reconciliation of assets (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Reconciliation of Assets
Assets	$ 81,697	$ 78,324
Intersegment Eliminations
Reconciliation of Assets
Inventory Methodology Difference	(2,707)	(2,536)
Intersegment Eliminations | Cash and Short Term Investments
Reconciliation of Assets
Assets	10,028	8,822
Intersegment Eliminations | Deferred Income Taxes
Reconciliation of Assets
Assets	1,352	1,413
Intersegment Eliminations | Goodwill and Intangible Assets
Reconciliation of Assets
Assets	4,924	4,847
Intersegment Eliminations | Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Assets	3,110	2,833
Intersegment Eliminations | Liabilities Included in Segment Assets
Reconciliation of Assets
Assets	9,387	8,466
Intersegment Eliminations | Other
Reconciliation of Assets
Assets	(356)	(392)
Operating Segments | Reportable Segments
Reconciliation of Assets
Assets	54,376	53,154
Operating Segments | Reportable Segments | Construction Industries
Reconciliation of Assets
Assets	4,416	4,259
Operating Segments | Reportable Segments | Resource Industries
Reconciliation of Assets
Assets	5,848	6,035
Operating Segments | Reportable Segments | Energy & Transportation
Reconciliation of Assets
Assets	9,179	8,582
Operating Segments | Reportable Segments | Financial Products Segment
Reconciliation of Assets
Assets	34,933	34,278
Operating Segments | All Other operating segments
Reconciliation of Assets
Assets	$ 1,583	$ 1,717

Reconciliations of depreciation

Reconciliations of depreciation and amortization (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reconciliation of Depreciation and amortization
Depreciation and amortization	$ 587	$ 608	$ 1,173	$ 1,222
Operating Segments | Reportable Segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	493	512	989	1,027
Operating Segments | Reportable Segments | Construction Industries
Reconciliation of Depreciation and amortization
Depreciation and amortization	59	61	118	122
Operating Segments | Reportable Segments | Resource Industries
Reconciliation of Depreciation and amortization
Depreciation and amortization	101	104	200	207
Operating Segments | Reportable Segments | Energy & Transportation
Reconciliation of Depreciation and amortization
Depreciation and amortization	142	149	284	295
Operating Segments | Reportable Segments | Financial Products Segment
Reconciliation of Depreciation and amortization
Depreciation and amortization	191	198	387	403
Intersegment Eliminations | All Other operating segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	60	63	122	125
Intersegment Eliminations | Cost Centers
Reconciliation of Depreciation and amortization
Depreciation and amortization	24	32	50	65
Intersegment Eliminations | Other
Reconciliation of Depreciation and amortization
Depreciation and amortization	$ 10	$ 1	$ 12	$ 5

Reconciliations of capital expe

Reconciliations of capital expenditures (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	$ 596	$ 450	$ 1,100	$ 998
Operating Segments | Reportable Segments
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	574	464	934	835
Operating Segments | Reportable Segments | Construction Industries
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	36	28	64	48
Operating Segments | Reportable Segments | Resource Industries
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	34	36	57	53
Operating Segments | Reportable Segments | Energy & Transportation
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	143	144	224	231
Operating Segments | Reportable Segments | Financial Products Segment
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	361	256	589	503
Intersegment Eliminations | All Other operating segments
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	32	23	47	38
Intersegment Eliminations | Cost Centers
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	0	6	19	15
Intersegment Eliminations | Timing
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	(15)	(14)	109	146
Intersegment Eliminations | Other
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	$ 5	$ (29)	$ (9)	$ (36)

Cat Financial Financing Activ_3

Cat Financial Financing Activities (Details-Allowance for credit losses) - Finance Receivables - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Allowance for Credit Loss Activity
Beginning balance	$ 437	$ 453	$ 475	$ 420
Write-offs	(68)	(36)	(102)	(73)
Recoveries	14	6	24	13
Provision for credit losses	13	86	3	146
Other	2	3	(2)	(6)
Ending balance	398	512	398	512
Allowance for Credit Losses
Individually evaluated	222	223	222	223
Collectively evaluated	176	289	176	289
Ending Balance	398	512	398	512	$ 475
Finance Receivables
Individually evaluated	570	679	570	679
Collectively evaluated	21,941	21,174	21,941	21,174
Total Finance Receivables	22,511	21,853	22,511	21,853
Adjustments to adopt new accounting guidance | Credit losses
Allowance for Credit Loss Activity
Beginning balance			0	12
Allowance for Credit Losses
Ending Balance					0
Customer
Allowance for Credit Loss Activity
Beginning balance	393	408	431	375
Write-offs	(68)	(36)	(102)	(73)
Recoveries	14	6	24	13
Provision for credit losses	13	86	3	146
Other	2	3	(2)	(6)
Ending balance	354	467	354	467
Allowance for Credit Losses
Individually evaluated	183	184	183	184
Collectively evaluated	171	283	171	283
Ending Balance	354	467	354	467	431
Finance Receivables
Individually evaluated	492	601	492	601
Collectively evaluated	19,356	17,869	19,356	17,869
Total Finance Receivables	19,848	18,470	19,848	18,470	19,238
Customer | Adjustments to adopt new accounting guidance | Credit losses
Allowance for Credit Loss Activity
Beginning balance			0	12
Allowance for Credit Losses
Ending Balance					0
Dealer
Allowance for Credit Loss Activity
Beginning balance	44	45	44	45
Write-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for credit losses	0	0	0	0
Other	0	0	0	0
Ending balance	44	45	44	45
Allowance for Credit Losses
Individually evaluated	39	39	39	39
Collectively evaluated	5	6	5	6
Ending Balance	44	45	44	45	44
Finance Receivables
Individually evaluated	78	78	78	78
Collectively evaluated	2,585	3,305	2,585	3,305
Total Finance Receivables	$ 2,663	$ 3,383	2,663	3,383
Dealer | Adjustments to adopt new accounting guidance | Credit losses
Allowance for Credit Loss Activity
Beginning balance			$ 0	$ 0
Allowance for Credit Losses
Ending Balance					$ 0

Cat Financial Financing Activ_4

Cat Financial Financing Activities Cat Financing Activities (Details Credit quality- Customer Receivables Aging by origination year -Vintage disclosure) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Receivables [Abstract]
Period after which Unpaid Installments are Considered as Past Due	30 days
Dealer | Latin America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2018 and 2017, respectively		$ 78
2017 and 2016, respectively	$ 78
Prior		3
Total Finance Receivables		81
Finance Receivables
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	22,511		$ 21,853
Finance Receivables | Customer
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	5,085	8,162
2020 and 2019, respectively	6,846	5,403
2019 and 2018, respectively	4,079	2,901
2018 and 2017, respectively	1,992	1,357
2017 and 2016, respectively	850	575
Prior	697	492
Revolving Finance Receivables	299	348
Total Finance Receivables	19,848	19,238	18,470
Finance Receivables | Customer | North America | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	2,469	3,777
2020 and 2019, respectively	3,224	2,423
2019 and 2018, respectively	1,931	1,344
2018 and 2017, respectively	957	522
2017 and 2016, respectively	325	212
Prior	111	27
Revolving Finance Receivables	117	89
Total Finance Receivables	9,134	8,394
Finance Receivables | Customer | North America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	12	52
2020 and 2019, respectively	37	49
2019 and 2018, respectively	25	33
2018 and 2017, respectively	19	16
2017 and 2016, respectively	8	7
Prior	3	2
Revolving Finance Receivables	0	0
Total Finance Receivables	104	159
Finance Receivables | Customer | North America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	4	22
2020 and 2019, respectively	7	25
2019 and 2018, respectively	5	16
2018 and 2017, respectively	5	9
2017 and 2016, respectively	2	2
Prior	2	1
Revolving Finance Receivables	0	0
Total Finance Receivables	25	75
Finance Receivables | Customer | North America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	2	14
2020 and 2019, respectively	17	35
2019 and 2018, respectively	27	31
2018 and 2017, respectively	15	20
2017 and 2016, respectively	10	9
Prior	6	4
Revolving Finance Receivables	2	2
Total Finance Receivables	79	115
Finance Receivables | Customer | EAME | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	952	1,605
2020 and 2019, respectively	1,275	931
2019 and 2018, respectively	669	501
2018 and 2017, respectively	329	203
2017 and 2016, respectively	126	60
Prior	38	18
Revolving Finance Receivables	0	0
Total Finance Receivables	3,389	3,318
Finance Receivables | Customer | EAME | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	6	5
2020 and 2019, respectively	10	15
2019 and 2018, respectively	15	3
2018 and 2017, respectively	2	2
2017 and 2016, respectively	1	0
Prior	1	0
Revolving Finance Receivables	0	0
Total Finance Receivables	35	25
Finance Receivables | Customer | EAME | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	1
2020 and 2019, respectively	7	1
2019 and 2018, respectively	4	2
2018 and 2017, respectively	2	1
2017 and 2016, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	13	5
Finance Receivables | Customer | EAME | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	3	7
2020 and 2019, respectively	11	7
2019 and 2018, respectively	7	12
2018 and 2017, respectively	6	4
2017 and 2016, respectively	3	39
Prior	61	43
Revolving Finance Receivables	0	0
Total Finance Receivables	91	112
Finance Receivables | Customer | Asia/Pacific | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	857	1,375
2020 and 2019, respectively	1,088	745
2019 and 2018, respectively	498	321
2018 and 2017, respectively	151	61
2017 and 2016, respectively	33	10
Prior	6	3
Revolving Finance Receivables	0	0
Total Finance Receivables	2,633	2,515
Finance Receivables | Customer | Asia/Pacific | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	4	12
2020 and 2019, respectively	22	22
2019 and 2018, respectively	17	13
2018 and 2017, respectively	8	6
2017 and 2016, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	52	53
Finance Receivables | Customer | Asia/Pacific | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	7
2020 and 2019, respectively	8	11
2019 and 2018, respectively	9	7
2018 and 2017, respectively	4	1
2017 and 2016, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	21	26
Finance Receivables | Customer | Asia/Pacific | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	4
2020 and 2019, respectively	12	10
2019 and 2018, respectively	8	9
2018 and 2017, respectively	8	3
2017 and 2016, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	29	26
Finance Receivables | Customer | Mining | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	433	490
2020 and 2019, respectively	420	571
2019 and 2018, respectively	478	287
2018 and 2017, respectively	272	152
2017 and 2016, respectively	89	92
Prior	191	151
Revolving Finance Receivables	71	137
Total Finance Receivables	1,954	1,880
Finance Receivables | Customer | Mining | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	5
2020 and 2019, respectively	3	0
2019 and 2018, respectively	0	5
2018 and 2017, respectively	0	1
2017 and 2016, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	3	11
Finance Receivables | Customer | Mining | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
2017 and 2016, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	0	0
Finance Receivables | Customer | Mining | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	0
2020 and 2019, respectively	1	11
2019 and 2018, respectively	2	8
2018 and 2017, respectively	4	2
2017 and 2016, respectively	2	0
Prior	0	0
Revolving Finance Receivables	0	1
Total Finance Receivables	9	22
Finance Receivables | Customer | Latin America | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	315	561
2020 and 2019, respectively	452	348
2019 and 2018, respectively	233	151
2018 and 2017, respectively	93	48
2017 and 2016, respectively	30	13
Prior	19	34
Revolving Finance Receivables	0	0
Total Finance Receivables	1,142	1,155
Finance Receivables | Customer | Latin America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	1	3
2020 and 2019, respectively	14	6
2019 and 2018, respectively	6	4
2018 and 2017, respectively	3	3
2017 and 2016, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	25	16
Finance Receivables | Customer | Latin America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	1
2020 and 2019, respectively	3	7
2019 and 2018, respectively	2	6
2018 and 2017, respectively	1	3
2017 and 2016, respectively	0	2
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	6	19
Finance Receivables | Customer | Latin America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	2
2020 and 2019, respectively	18	14
2019 and 2018, respectively	11	11
2018 and 2017, respectively	11	24
2017 and 2016, respectively	6	5
Prior	8	4
Revolving Finance Receivables	0	0
Total Finance Receivables	54	60
Finance Receivables | Customer | Caterpillar Power Finance | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	27	217
2020 and 2019, respectively	215	172
2019 and 2018, respectively	132	111
2018 and 2017, respectively	82	273
2017 and 2016, respectively	209	99
Prior	180	117
Revolving Finance Receivables	109	119
Total Finance Receivables	954	1,108
Finance Receivables | Customer | Caterpillar Power Finance | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	6
2018 and 2017, respectively	0	0
2017 and 2016, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	0	6
Finance Receivables | Customer | Caterpillar Power Finance | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
2017 and 2016, respectively	0	0
Prior	2	9
Revolving Finance Receivables	0	0
Total Finance Receivables	2	9
Finance Receivables | Customer | Caterpillar Power Finance | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	0	2
2020 and 2019, respectively	2	0
2019 and 2018, respectively	0	20
2018 and 2017, respectively	20	3
2017 and 2016, respectively	3	25
Prior	69	79
Revolving Finance Receivables	0	0
Total Finance Receivables	94	$ 129
Finance Receivables | Dealer
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	$ 2,663		$ 3,383

Cat Financial Financing Activ_5

Cat Financial Financing Activities (Details Non-accrual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Receivables [Abstract]
Period after which Collection of Future Income is Considered as Not Probable			120 days
Dealer
Financing Receivable, Nonaccrual
Interest income recognized for finance receivables on non-accrual status	$ 0	$ 0	$ 0	$ 0
Customer
Financing Receivable, Nonaccrual
Interest income recognized for finance receivables on non-accrual status	1	$ 1	6	$ 5
Finance Receivables | Dealer
Financing Receivable, Nonaccrual
Financing Receivable, 91 days past due and still accruing	0		0		$ 0
Finance Receivables | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	349		349		466
Amortized Cost, Non-accrual Without an Allowance	3		3		20
Financing Receivable, 91 days past due and still accruing	33		33		49
Finance Receivables | North America | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	62		62		86
Amortized Cost, Non-accrual Without an Allowance	1		1		1
Financing Receivable, 91 days past due and still accruing	19		19		34
Finance Receivables | EAME | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	89		89		113
Amortized Cost, Non-accrual Without an Allowance	0		0		1
Financing Receivable, 91 days past due and still accruing	2		2		1
Finance Receivables | Asia/Pacific | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	19		19		13
Amortized Cost, Non-accrual Without an Allowance	1		1		0
Financing Receivable, 91 days past due and still accruing	11		11		13
Finance Receivables | Mining | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	9		9		21
Amortized Cost, Non-accrual Without an Allowance	1		1		1
Financing Receivable, 91 days past due and still accruing	0		0		0
Finance Receivables | Latin America | Dealer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	78		78		81
Finance Receivables | Latin America | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	57		57		63
Amortized Cost, Non-accrual Without an Allowance	0		0		0
Financing Receivable, 91 days past due and still accruing	1		1		1
Finance Receivables | Caterpillar Power Finance | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	113		113		170
Amortized Cost, Non-accrual Without an Allowance	0		0		17
Financing Receivable, 91 days past due and still accruing	$ 0		$ 0		$ 0

Cat Financial Financing Activ_6

Cat Financial Financing Activities (Details TDR) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)Contracts	Jun. 30, 2020USD ($)Contracts	Jun. 30, 2021USD ($)Contracts	Jun. 30, 2020USD ($)Contracts
Customer
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	$ 26	$ 71	$ 37	$ 73
Post-TDR Amortized Cost	26	71	31	73
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	17	0	27	11
Customer | North America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	4	9	4	9
Post-TDR Amortized Cost	4	9	4	9
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0	0	1	0
Customer | EMEA
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0	0	0	10
Customer | Asia/Pacific
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	0	8	0	8
Post-TDR Amortized Cost	0	8	0	8
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	2	0	6	0
Customer | Mining
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	0	17	11	17
Post-TDR Amortized Cost	0	17	5	17
Customer | Latin America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	6	0	6	2
Post-TDR Amortized Cost	6	0	6	2
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	15	0	15	1
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	16	37	16	37
Post-TDR Amortized Cost	16	37	16	37
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 0	$ 0	$ 5	$ 0
Dealer
Finance receivables modified as TDRs
Number of Contracts (in contracts) | Contracts	0	0	0	0

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets
Available-for-sale securities, debt securities	$ 1,691	$ 1,683
Recurring basis
Assets
Available-for-sale securities, debt securities	1,691	1,683
Equity Securities, FV-NI	426	405
Derivative Assets (Liabilities), at Fair Value, Net	221	(17)
Total Assets	2,338	2,088
Liabilities
Total Liabilities		17
U.S. treasury bonds
Assets
Available-for-sale securities, debt securities	10	10
U.S. treasury bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	10	10
Other U.S. and non-U.S. government bonds
Assets
Available-for-sale securities, debt securities	58	59
Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	58	59
Corporate bonds
Assets
Available-for-sale securities, debt securities	1,028	1,012
Corporate bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	1,028	1,012
Asset-backed securities
Assets
Available-for-sale securities, debt securities	152	159
Asset-backed securities | Recurring basis
Assets
Available-for-sale securities, debt securities	152	159
U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities, debt securities	355	374
Residential
Assets
Available-for-sale securities, debt securities	5	5
Residential | Recurring basis
Assets
Available-for-sale securities, debt securities	5	5
Commercial
Assets
Available-for-sale securities, debt securities	83	64
Commercial | Recurring basis
Assets
Available-for-sale securities, debt securities	83	64
Large capitalization value | Recurring basis
Assets
Equity Securities, FV-NI	234	199
Smaller company growth | Recurring basis
Assets
Equity Securities, FV-NI	40	58
REIT | Recurring basis
Assets
Equity Securities, FV-NI	152	148
Level 1 | Recurring basis
Assets
Available-for-sale securities, debt securities	10	10
Equity Securities, FV-NI	274	257
Total Assets	284	267
Level 1 | U.S. treasury bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	10	10
Level 1 | Large capitalization value | Recurring basis
Assets
Equity Securities, FV-NI	234	199
Level 1 | Smaller company growth | Recurring basis
Assets
Equity Securities, FV-NI	40	58
Level 2 | Recurring basis
Assets
Available-for-sale securities, debt securities	1,681	1,673
Derivative Assets (Liabilities), at Fair Value, Net	221	(17)
Total Assets	1,902	1,673
Liabilities
Total Liabilities		17
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	58	59
Level 2 | Corporate bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	1,028	1,012
Level 2 | Asset-backed securities | Recurring basis
Assets
Available-for-sale securities, debt securities	152	159
Level 2 | U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities, debt securities	355	374
Level 2 | Residential | Recurring basis
Assets
Available-for-sale securities, debt securities	5	5
Level 2 | Commercial | Recurring basis
Assets
Available-for-sale securities, debt securities	83	64
Fair Value Measured on Net Asset Value (NAV) | Recurring basis
Assets
Equity Securities, FV-NI	152	148
Total Assets	152	148
Fair Value Measured on Net Asset Value (NAV) | REIT | Recurring basis
Assets
Equity Securities, FV-NI	152	148
Financial Products | Level 3 | Nonrecurring basis
Assets and liabilities measured on a recurring basis at fair value
Loans carried at fair value	$ 157	$ 243

Fair Value Disclosures (Detai_2

Fair Value Disclosures (Details 2) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets
Cash and short-term investments	$ 10,831	$ 9,352
Machinery, Energy & Transportation
Liabilities
Short-term borrowings	4	10
Financial Products
Liabilities
Short-term borrowings	3,421	2,005
Carrying Amount
Assets
Cash and short-term investments	10,831	9,352
Restricted cash and short-term investments	236	14
Investments in debt and equity securities	2,117	2,088
Finance receivables-net (excluding finance leases)	14,275	14,028
Wholesale inventory receivables-net (excluding finance leases)	832	929
Foreign currency contracts-net	133	0
Interest rate contracts asset-net	30	58
Commodity contracts-net	58	37
Liabilities
Short-term borrowings	3,425	2,015
Foreign currency contracts-net	0	112
Guarantees	5	5
Carrying Amount | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	9,802	11,169
Carrying Amount | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	24,358	23,979
Carrying amount of assets excluded from measurement at fair value
Liabilities
Excluded items: Finance leases and failed sale leasebacks, Carrying Value	8,147	7,961
Level 1 | Fair Value
Assets
Cash and short-term investments	10,831	9,352
Restricted cash and short-term investments	236	14
Liabilities
Short-term borrowings	3,425	2,015
Level 2 | Fair Value
Assets
Foreign currency contracts-net	133	0
Interest rate contracts asset-net	30	58
Commodity contracts-net	58	37
Liabilities
Foreign currency contracts-net	0	112
Level 2 | Fair Value | Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	12,544	14,549
Level 2 | Fair Value | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	24,811	24,614
Level 3 | Fair Value
Assets
Finance receivables-net (excluding finance leases)	14,452	14,357
Wholesale inventory receivables-net (excluding finance leases)	806	911
Liabilities
Guarantees	5	5
Level1 and 2 | Fair Value
Assets
Investments in debt and equity securities	$ 2,117	$ 2,088

Other income (expense) (Details

Other income (expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Income and Expenses [Abstract]
Investment and interest income	$ 21	$ 27	$ 44	$ 70
Foreign exchange gains (losses)	(32)	(4)	63	(79)
License fee income	32	23	57	48
Net periodic pension and OPEB income (cost), excluding service cost	111	(63)	222	270
Gains (losses) on securities	17	37	42	(21)
Miscellaneous income (loss)	52	9	98	(37)
Total	201	29	526	251
Other income (expense) [Line Items]
Gain (loss) on remeasurement of pension obligations		(122)	0	132
Foreign Plan
Other income (expense) [Line Items]
Gain (loss) on remeasurement of pension obligations	$ 0	$ (120)	$ 0	$ 134

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restructuring and Related Cost
Restructuring costs	$ 25	$ 147	$ 89	$ 184
Employee Separation Charges [Roll Forward]
Restructuring Reserve, Beginning Balance			164	48
Restructuring Reserve, Ending Balance	144	87	144	87
Increase in liability (separation charges)			62	134
Payments for Restructuring			(82)	(95)
Construction Industries [Member]
Restructuring and Related Cost
Restructuring costs	0	4	0	5
Resource Industries
Restructuring and Related Cost
Restructuring costs	0	15	0	16
Energy & Transportation
Restructuring and Related Cost
Restructuring costs	0	17	0	21
Financial Products Segment
Restructuring and Related Cost
Restructuring costs	0	1	0	1
Employee separations | Other Operating Income (Expense)
Restructuring and Related Cost
Restructuring costs	17	123	62	134
Contract terminations | Other Operating Income (Expense)
Restructuring and Related Cost
Restructuring costs	0	2	0	3
Long-lived asset impairments | Other Operating Income (Expense)
Restructuring and Related Cost
Restructuring costs	(7)	14	4	23
Other | Cost of Sales
Restructuring and Related Cost
Restructuring costs	$ 15	$ 8	$ 23	$ 24

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Millions	Feb. 01, 2021	Jun. 30, 2021	Jun. 30, 2020
Acquisitions
Net cash paid for acquisition		$ 398	$ 49
SPM Oil & Gas
Acquisitions
Net cash paid for acquisition	$ 361
Assets acquired
Tangible assets acquired	518
Cash	22
Business Combination, Lease Asset	105
Receivables	101
Inventory	159
Property, plant and equipment	$ 117
Finite-lived intangible assets, weighed average useful life (in years)	8 years
Finite-lived intangible assets acquired	$ 23
Business Combination, Goodwill	29
Liabilities assumed
Business Combination, Accounts Payable	33
Total liabilities assumed	187
Business Combination, Lease Obligation	$ 105