Caterpillar (CAT) 10-Q 3 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page	9 Months Ended
	Sep. 30, 2021shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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	540,941,600
Entity Central Index Key	0000018230
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
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				9 Months Ended
	Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020
Sales and revenues:
Sales and revenues	$ 12,397		$ 9,881		$ 37,173		$ 30,513
Operating costs:
Cost of goods sold	8,617		6,919		25,510		21,298
Selling, general and administrative expenses	1,340		1,126		3,943		3,426
Research and development expenses	427		344		1,247		1,041
Other operating (income) expenses	238		370		854		1,114
Total operating costs	10,733		8,896		31,906		27,340
Operating profit	1,664		985		5,267		3,173
Other income (expense)	225		14		751		265
Consolidated profit before taxes	1,775		863		5,642		3,054
Provision (benefit) for income taxes	368		187		1,313		839
Profit of consolidated companies	1,407		676		4,329		2,215
Equity in profit (loss) of unconsolidated affiliated companies	21		(5)		44		8
Profit of consolidated and affiliated companies	1,428		671		4,373		2,223
Less: Profit (loss) attributable to the noncontrolling interests	2		3		4		5
Profit	$ 1,426	[1]	$ 668	[1]	$ 4,369	[2]	$ 2,218	[2]
Profit per common share (in dollars per share)	$ 2.62		$ 1.23		$ 8		$ 4.08
Profit per common share - diluted (in dollars per share)	$ 2.60	[3]	$ 1.22	[3]	$ 7.94	[4]	$ 4.05	[4]
Weighted-average common shares outstanding (millions)
Basic (in shares)	544		542.3		545.8		543.9
Diluted (in shares)	547.6	[3]	546.4	[3]	550.2	[4]	547.8	[4]
Machinery, Energy & Transportation
Sales and revenues:
Sales and revenues	$ 11,707		$ 9,228		$ 35,091		$ 28,452
Financial Products
Sales and revenues:
Sales and revenues	690		653		2,082		2,061
Operating costs:
Interest expense of Financial Products	111		137		352		461
All other excluding Financial Products
Operating costs:
Interest expense excluding Financial Products	$ 114		$ 136		$ 376		$ 384
[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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Profit of consolidated and affiliated companies	$ 1,428	$ 671	$ 4,373	$ 2,223
Foreign currency translation	(242)	291	(490)	106
Pension and other post retirement benefits	(8)	(8)	(23)	(20)
Derivative financial instruments	(31)	76	(19)	4
Available for sale securities	(5)	8	(20)	29
Total other comprehensive income (loss), net of tax	(286)	367	(552)	119
Comprehensive income	1,142	1,038	3,821	2,342
Less: comprehensive income attributable to the noncontrolling interests	2	3	4	5
Comprehensive income attributable to shareholders	$ 1,140	$ 1,035	$ 3,817	$ 2,337

Consolidated Statement of Finan

Consolidated Statement of Financial Position - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 9,446	$ 9,352
Receivables - trade and other	7,647	7,317
Receivables - finance	8,919	9,463
Prepaid expenses and other current assets	2,215	1,930
Inventories	13,666	11,402
Total current assets	41,893	39,464
Property, plant and equipment - net	11,904	12,401
Long-term receivables - trade and other	1,273	1,185
Long-term receivables - finance	12,605	12,222
Noncurrent deferred and refundable income taxes	1,744	1,523
Intangible assets	1,121	1,308
Goodwill	6,353	6,394
Other assets	3,891	3,827
Total assets	80,784	78,324
Short-term borrowings:
Accounts payable	7,218	6,128
Accrued expenses	3,579	3,642
Accrued wages, salaries and employee benefits	2,075	1,096
Customer advances	1,155	1,108
Dividends payable	0	562
Other current liabilities	2,319	2,017
Long-term debt due within one year:
Total current liabilities	25,976	25,717
Long-term debt due after one year:
Liability for postemployment benefits	6,395	6,872
Other liabilities	4,564	4,358
SPC liabilities in consolidated statement	64,089	62,946
Commitments and contingencies (Notes 11 and 14)
Shareholders' equity
Authorized shares: 2,000,000,000 Issued shares: (9/30/21 and 12/31/20 – 814,894,624) at paid-in amount	6,352	6,230
Treasury stock (9/30/21 – 273,953,024 shares; 12/31/20 – 269,590,777 shares) at cost	(26,608)	(25,178)
Profit employed in the business	38,361	35,167
Accumulated other comprehensive income (loss)	(1,440)	(888)
Noncontrolling interests	30	47
Total shareholders' equity	16,695	15,378
Total liabilities and shareholders' equity	$ 80,784	$ 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	273,953,024	269,590,777
Machinery, Energy & Transportation
Short-term borrowings:
Short-term borrowings	$ 0	$ 10
Long-term debt due within one year:
Long-term debt due within one year	48	1,420
Long-term debt due after one year:
Long-term Debt due after one year	9,759	9,749
Financial Products
Short-term borrowings:
Short-term borrowings	3,247	2,005
Long-term debt due within one year:
Long-term debt due within one year	6,335	7,729
Long-term debt due after one year:
Long-term Debt due after one year	$ 17,395	$ 16,250

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		2,223			0			0			2,218			0			5
Foreign currency translation		106			0			0			0			106			0
Pension and other post retirement benefits		(20)			0			0			0			(20)			0
Derivative financial instruments, net of tax		4			0			0			0			4			0
Available for sale securities		29			0			0			0			29			0
Dividends declared	[1]	1,121			0			0			1,121			0			0
Common shares issued from treasury stock for stock-based compensation		110			(43)			153			0			0			0
Stock-based compensation expense, before tax (in dollars)		169			169			0			0			0			0
Common shares repurchased	[2]	(1,250)			0			(1,250)			0			0			0
Other		140			(143)			1			1			0			1
Balance at Sep. 30, 2020		$ 14,994			6,204			(25,315)			35,508			(1,448)			45
Increase (Decrease) in Shareholders' Equity
Common shares issued, Shares, from treasury stock for stock-based compensation (in shares)		3,271,679
Common shares repurchased (in shares)		10,096,006
Common Stock, Dividends, Per Share, Declared		$ 2.06
Balance at Jun. 30, 2020		$ 13,777			6,120			(25,412)			34,841			(1,815)			43
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		671			0			0			668			0			3
Foreign currency translation		291			0			0			0			291			0
Pension and other post retirement benefits		(8)			0			0			0			(8)			0
Derivative financial instruments, net of tax		76			0			0			0			76			0
Available for sale securities		8			0			0			0			8			0
Common shares issued from treasury stock for stock-based compensation		120			23			97			0			0			0
Stock-based compensation expense, before tax (in dollars)		55			55			0			0			0			0
Other		4			6			0			(1)			0			(1)
Balance at Sep. 30, 2020		$ 14,994			6,204			(25,315)			35,508			(1,448)			45
Increase (Decrease) in Shareholders' Equity
Common shares issued, Shares, from treasury stock for stock-based compensation (in shares)		1,751,708
Common shares repurchased (in shares)		0
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		4,373			0			0			4,369			0			4
Foreign currency translation		(490)			0			0			0			(490)			0
Pension and other post retirement benefits		(23)			0			0			0			(23)			0
Derivative financial instruments, net of tax		(19)			0			0			0			(19)			0
Available for sale securities		(20)			0			0			0			(20)			0
Dividends declared	[1]	1,175			0			0			1,175			0			0
Distribution to noncontrolling interests		(4)			0			0			0			0			(4)
Common shares issued from treasury stock for stock-based compensation		122			(70)			192			0			0			0
Stock-based compensation expense, before tax (in dollars)		169			169			0			0			0			0
Common shares repurchased	[2]	(1,622)			0			(1,622)			0			0			0
Other		22			23			0			0			0			(1)
Balance at Sep. 30, 2021		$ 16,695			6,352			(26,608)			38,361			(1,440)			30
Increase (Decrease) in Shareholders' Equity
Common shares issued, Shares, from treasury stock for stock-based compensation (in shares)		3,410,146
Common shares repurchased (in shares)		7,772,393
Common Stock, Dividends, Per Share, Declared		$ 2.14
Noncontrolling Interest, Period Increase (Decrease)		$ (16)			0			0			0			0			(16)
Balance at Jun. 30, 2021		16,880			6,293			(25,240)			36,934			(1,154)			47
Increase (Decrease) in Shareholders' Equity
Profit of consolidated and affiliated companies		1,428			0			0			1,426			0			2
Foreign currency translation		(242)			0			0			0			(242)			0
Pension and other post retirement benefits		(8)			0			0			0			(8)			0
Derivative financial instruments, net of tax		(31)			0			0			0			(31)			0
Available for sale securities		(5)			0			0			0			(5)			0
Dividends declared		1			0			0			1			0			0
Distribution to noncontrolling interests		(2)			0			0			0			0			(2)
Common shares issued from treasury stock for stock-based compensation		(1)			(5)			4			0			0			0
Stock-based compensation expense, before tax (in dollars)		58			58			0			0			0			0
Common shares repurchased	[3]	(1,371)			0			(1,371)			0			0			0
Other		4			6			(1)			0			0			(1)
Balance at Sep. 30, 2021		$ 16,695			6,352			(26,608)			38,361			(1,440)			30
Increase (Decrease) in Shareholders' Equity
Common shares issued, Shares, from treasury stock for stock-based compensation (in shares)		80,571
Common shares repurchased (in shares)		6,610,438
Noncontrolling Interest, Period Increase (Decrease)		$ (16)			$ 0			$ 0			$ 0			$ 0			$ (16)
[1]	Dividends per share of common stock of $2.14 and $2.06 were declared in the nine months ended September 30, 2021 and 2020, respectively.
[2]	See Note 12 for additional information
[3]	See Note 12 for additional information.

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$ 4,373	$ 2,223
Adjustments for non-cash items:
Depreciation and amortization	1,766	1,815
Net gain on remeasurement of pension obligations	0	(55)
Provision (benefit) for deferred income taxes	(321)	(38)
Other	102	919
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other	(326)	1,473
Inventories	(2,195)	(139)
Accounts payable	1,232	(596)
Accrued expenses	46	(286)
Accrued wages, salaries and employee benefits	934	(547)
Customer advances	39	13
Other assets - net	138	(15)
Other liabilities - net	(2)	(512)
Net cash provided by (used for) operating activities	5,786	4,255
Cash flow from investing activities:
Payments to Acquire Property, Plant, and Equipment	(673)	(686)
Expenditures for equipment leased to others	(1,014)	(805)
Proceeds from disposals of leased assets and property, plant and equipment	877	550
Additions to finance receivables	(9,603)	(9,278)
Collections of finance receivables	9,221	9,656
Proceeds from sale of finance receivables	44	37
Investments and acquisitions (net of cash acquired)	(449)	(93)
Proceeds from sale of businesses and investments (net of cash sold)	23	13
Proceeds from sale of securities	424	239
Investments in securities	(934)	(512)
Other - net	(8)	(80)
Net Cash Provided by (Used in) Investing Activities	(2,092)	(959)
Cash flow from financing activities:
Dividends paid	(1,733)	(1,683)
Common stock issued, including treasury shares reissued	122	110
Common shares repurchased	(1,622)	(1,130)
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	494	1,991
Financial Products	6,437	7,427
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(1,910)	(18)
Financial Products	(6,710)	(6,771)
Short-term borrowings - net (original maturities three months or less)	1,324	(2,138)
Other - net	(4)	(1)
Net cash provided by (used for) financing activities	(3,602)	(2,213)
Effect of exchange rate changes on cash	(9)	(56)
Increase (decrease) in cash, cash equivalents and restricted cash	83	1,027
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	9,449	9,319
Foreign Plan
Adjustments for non-cash items:
Net gain on remeasurement of pension obligations	$ 0	$ (55)

Nature of Operations, Basis of

Nature of Operations, Basis of Presentation and Change in Accounting Principle	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020, (b) the consolidated comprehensive income for the three and nine months ended September 30, 2021 and 2020, (c) the consolidated financial position at September 30, 2021 and December 31, 2020, (d) the consolidated changes in shareholders’ equity for the three and nine months ended September 30, 2021 and 2020 and (e) the consolidated cash flow for the nine months ended September 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	9 Months Ended
	Sep. 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. In addition, in October 2021, we elected to adopt optional expedients for contract modifications. The adoption of the optional expedients will not have a material impact 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	9 Months Ended
	Sep. 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 $6,476 million, $6,310 million and $7,648 million as of September 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 $667 million, $657 million and $693 million as of September 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 $1,577 million, $1,526 million and $1,654 million as of September 30, 2021, December 31, 2020 and December 31, 2019, respectively. We reduce the contract liability when revenue is recognized. During the three and nine months ended September 30, 2021, we recognized $121 million and $795 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2021. During the three and nine months ended September 30, 2020, we recognized $144 million and $843 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2020. As of September 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 September 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	9 Months Ended
	Sep. 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 $58 million and $169 million for the three and nine months ended September 30, 2021, respectively, and $55 million and $169 million for the three and nine months ended September 30, 2020, respectively. The following table illustrates the type and fair value of the stock-based compensation awards granted during the nine months ended September 30, 2021 and 2020, respectively: Nine Months Ended September 30, 2021 Nine Months Ended September 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 nine months ended September 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	9 Months Ended
	Sep. 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 September 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 September 30, 2021 December 31, 2020 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 44 $ 74 Machinery, Energy & Transportation Long-term receivables – trade and other 33 71 Machinery, Energy & Transportation Accrued expenses (23) (36) Machinery, Energy & Transportation Other liabilities (7) (1) Financial Products Receivables – trade and other — 1 Financial Products Long-term receivables – trade and other 115 1 Financial Products Accrued expenses (21) (148) Interest rate contracts Machinery, Energy & Transportation Long-term receivables – trade and other — 4 Financial Products Receivables – trade and other 8 2 Financial Products Long-term receivables – trade and other 27 57 Financial Products Accrued expenses (8) (5) $ 168 $ 20 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 13 $ 10 Machinery, Energy & Transportation Long-term receivables – trade and other 1 — Machinery, Energy & Transportation Accrued expenses (10) (1) Financial Products Receivables – trade and other 54 17 Financial Products Long-term receivables – trade and other 6 7 Financial Products Accrued expenses (12) (107) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 29 35 Machinery, Energy & Transportation Long-term receivables – trade and other 2 2 Machinery, Energy & Transportation Accrued expenses (23) — Machinery, Energy & Transportation Other liabilities (1) — $ 59 $ (37) The total notional amounts of the derivative instruments were as follows: (Millions of dollars) September 30, 2021 December 31, 2020 Machinery, Energy & Transportation $ 4,742 $ 3,553 Financial Products $ 11,069 $ 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 September 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 $ (47) Sales of Machinery, Energy & Transportation $ 2 $ 11,707 Cost of goods sold 4 8,617 Financial Products 89 Interest expense of Financial Products (3) 111 Other income (expense) 87 225 Interest rate contracts Financial Products 3 Interest expense of Financial Products (5) 111 $ 45 $ 85 Three Months Ended September 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 $ 66 Sales of Machinery, Energy & Transportation $ (6) $ 9,228 Cost of goods sold (15) 6,919 Financial Products (64) Interest expense of Financial Products 8 137 Other income (expense) (63) 14 Interest rate contracts Machinery, Energy & Transportation 2 Interest expense excluding Financial Products (1) 136 Financial Products 1 Interest expense of Financial Products (16) 137 $ 5 $ (93) Cash Flow Hedges Nine Months Ended September 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 $ (40) Sales of Machinery, Energy & Transportation $ (21) $ 35,091 Cost of goods sold 42 25,510 Financial Products 170 Interest expense of Financial Products (1) 352 Other income (expense) 167 751 Interest rate contracts Machinery, Energy & Transportation 7 Interest expense excluding Financial Products (2) 376 Financial Products 4 Interest expense of Financial Products (21) 352 $ 141 $ 164 Nine Months Ended September 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 $ (58) Sales of Machinery, Energy & Transportation $ 10 $ 28,452 Cost of goods sold (58) 21,298 Financial Products 2 Interest expense of Financial Products 28 461 Other income (expense) (35) 265 Interest rate contracts Machinery, Energy & Transportation (14) Interest expense excluding Financial Products (3) 384 Financial Products (23) Interest expense of Financial Products (40) 461 $ (93) $ (98) 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 September 30, 2021 Three Months Ended September 30, 2020 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 2 $ 8 Financial Products Other income (expense) 44 (73) Commodity contracts Machinery, Energy & Transportation Other income (expense) (30) 6 $ 16 $ (59) Classification of Gains (Losses) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 5 $ 21 Financial Products Other income (expense) 72 12 Commodity contracts Machinery, Energy & Transportation Other income (expense) 35 (25) $ 112 $ 8 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 September 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: September 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 $ 122 $ — $ 122 $ (53) $ — $ 69 Financial Products 210 — 210 (39) — 171 Total $ 332 $ — $ 332 $ (92) $ — $ 240 September 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 $ (64) $ — $ (64) $ 53 $ — $ (11) Financial Products (41) — (41) 39 — (2) Total $ (105) $ — $ (105) $ 92 $ — $ (13) 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	9 Months Ended
	Sep. 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) September 30, December 31, Raw materials $ 5,144 $ 4,021 Work-in-process 1,522 1,052 Finished goods 6,707 6,054 Supplies 293 275 Total inventories $ 13,666 $ 11,402

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Sep. 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: September 30, 2021 (Millions of dollars) Weighted Gross Accumulated Net Customer relationships 15 $ 2,436 $ (1,682) $ 754 Intellectual property 12 1,473 (1,160) 313 Other 15 157 (103) 54 Total finite-lived intangible assets 14 $ 4,066 $ (2,945) $ 1,121 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 nine months ended September 30, 2021 was $75 million and $228 million, respectively. Amortization expense for the three and nine months ended September 30, 2020 was $78 million and $236 million, respectively. Amortization expense related to intangible assets is expected to be: (Millions of dollars) Remaining Three Months of 2021 2022 2023 2024 2025 Thereafter $74 $287 $228 $170 $160 $202 B. Goodwill No goodwill was impaired during the nine months ended September 30, 2021 or 2020. The changes in carrying amount of goodwill by reportable segment for the nine months ended September 30, 2021 were as follows: (Millions of dollars) December 31, Acquisitions 1 Other Adjustments 2 September 30, Construction Industries Goodwill $ 320 $ 4 $ (17) $ 307 Impairments (22) — — (22) Net goodwill 298 4 (17) 285 Resource Industries Goodwill 4,253 22 (62) 4,213 Impairments (1,175) — — (1,175) Net goodwill 3,078 22 (62) 3,038 Energy & Transportation Goodwill 2,959 51 (35) 2,975 All Other 3 Goodwill 59 — (4) 55 Consolidated total Goodwill 7,591 77 (118) 7,550 Impairments (1,197) — — (1,197) Net goodwill $ 6,394 $ 77 $ (118) $ 6,353 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	9 Months Ended
	Sep. 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 primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale 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 available-for-sale 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 available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows: Available-for-sale debt securities September 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 — 57 58 1 59 Corporate bonds Corporate bonds 1,004 31 1,035 962 50 1,012 Asset-backed securities 146 2 148 156 3 159 Mortgage-backed debt securities U.S. governmental agency 340 9 349 362 12 374 Residential 4 — 4 5 — 5 Commercial 97 3 100 60 4 64 Total available-for-sale debt securities $ 1,658 $ 45 $ 1,703 $ 1,613 $ 70 $ 1,683 Available-for-sale debt securities in an unrealized loss position: September 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 $ 215 $ 2 $ 6 $ — $ 221 $ 2 Total $ 215 $ 2 $ 6 $ — $ 221 $ 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 $ — Total $ 13 $ — $ 4 $ — $ 17 $ — 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 September 30, 2021. The cost basis and fair value of available-for-sale debt securities at September 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. September 30, 2021 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 154 $ 156 Due after one year through five years 730 753 Due after five years through ten years 271 278 Due after ten years 62 63 U.S. governmental agency mortgage-backed securities 340 349 Residential mortgage-backed securities 4 4 Commercial mortgage-backed securities 97 100 Total debt securities – available-for-sale $ 1,658 $ 1,703 Sales of available-for-sale debt securities: Three Months Ended September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Proceeds from the sale of available-for-sale securities $ 97 $ 74 $ 322 $ 197 Gross gains from the sale of available-for-sale securities 1 — 3 1 Gross losses from the sale of available-for-sale securities — — — 1 In addition, we had $543 million of investments in time deposits classified as held-to-maturity debt securities as of September 30, 2021. All these investments mature within one year and we include them in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. We did not have any investments classified as held-to-maturity debt securities as of December 31, 2020. We record held-to-maturity debt securities at amortized cost, which approximates fair value. We did not have any unrealized gains or losses on these securities as of September 30, 2021 and December 31, 2020. For the three months ended September 30, 2021 and 2020, the net unrealized gains (losses) for equity securities held at September 30, 2021 and 2020 were $46 million and $9 million, respectively. For the nine months ended September 30, 2021 and 2020, the net unrealized gains (losses) for equity securities held at September 30, 2021 and 2020 were $65 million and $(1) million, respectively.

Postretirement Benefits

Postretirement Benefits	9 Months Ended
	Sep. 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) September 30 September 30 September 30 2021 2020 2021 2020 2021 2020 For the three months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 15 $ 13 $ 25 $ 24 Interest cost 82 120 16 17 16 26 Expected return on plan assets (180) (197) (33) (34) (1) (4) Amortization of prior service cost (credit) — — — — (11) (9) (Gain) loss on remeasurement of pension obligations 1 — (2) — 79 — — Curtailments, settlements and termination benefits 1 — — — 4 — — Net periodic benefit cost (benefit) 2 $ (98) $ (79) $ (2) $ 79 $ 29 $ 37 For the nine months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 44 $ 41 $ 75 $ 71 Interest cost 247 362 43 57 48 79 Expected return on plan assets (538) (593) (98) (107) (4) (10) Amortization of prior service cost (credit) — — — — (31) (28) (Gain) loss on remeasurement of pension obligations 1 — — — (55) — — Curtailments, settlements and termination benefits 1 — — — 25 — — Net periodic benefit cost (benefit) 2 $ (291) $ (231) $ (11) $ (39) $ 88 $ 112 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, June 30, 2020 and September 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 $69 million and $229 million of contributions to our pension and other postretirement plans during the three and nine months ended September 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 September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 U.S. Plans $ 81 $ 103 $ 321 $ 248 Non-U.S. Plans 29 22 83 65 $ 110 $ 125 $ 404 $ 313 The increase in the U.S. defined contribution benefit costs for the nine months ended September 30, 2021 was primarily due to the fair value adjustments related to our non-qualified deferred compensation plans.

Leases

Leases	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Revenue from finance and operating 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 September 30 Nine Months Ended September 30 2021 2020 2021 2020 Finance lease revenue $ 120 $ 125 $ 369 $ 369 Operating lease revenue 275 249 850 837 Total $ 395 $ 374 $ 1,219 $ 1,206

Guarantees and Product Warranty

Guarantees and Product Warranty	9 Months Ended
	Sep. 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 September 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) September 30, December 31, Caterpillar dealer performance guarantees $ 908 $ 993 Supplier consortium performance guarantee 247 258 Other guarantees 248 234 Total guarantees $ 1,403 $ 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 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 September 30, 2021 and December 31, 2020, the SPC’s assets of $899 million and $1,026 million, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $899 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 Nine Months (Millions of dollars) 2021 2020 Warranty liability, beginning of period $ 1,612 $ 1,541 Reduction in liability (payments) (638) (652) Increase in liability (new warranties) 716 678 Warranty liability, end of period $ 1,690 $ 1,567

Profit Per Share

Profit Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Profit Per Share	Profit per share Computations of profit per share: Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions except per share data) 2021 2020 2021 2020 Profit for the period (A) 1 $ 1,426 $ 668 $ 4,369 $ 2,218 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 544.0 542.3 545.8 543.9 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 3.6 4.1 4.4 3.9 Average common shares outstanding for fully diluted computation (C) 2 547.6 546.4 550.2 547.8 Profit per share of common stock: Assuming no dilution (A/B) $ 2.62 $ 1.23 $ 8.00 $ 4.08 Assuming full dilution (A/C) 2 $ 2.60 $ 1.22 $ 7.94 $ 4.05 Shares outstanding as of September 30 (in millions) 540.9 543.3 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 nine months ended September 30, 2021 and 2020, we excluded 1.1 million and 4.8 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 September 30, 2021, approximately $3.1 billion remained available under the 2018 Authorization.

Accumulated other comprehensive

Accumulated other comprehensive income (loss)	9 Months Ended
	Sep. 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 September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Foreign currency translation: Beginning balance $ (1,158) $ (1,672) $ (910) $ (1,487) Gains (losses) on foreign currency translation (230) 270 (461) 64 Less: Tax provision /(benefit) 12 (21) 29 (20) Net gains (losses) on foreign currency translation (242) 291 (490) 84 (Gains) losses reclassified to earnings — — — 22 Less: Tax provision /(benefit) — — — — Net (gains) losses reclassified to earnings — — — 22 Other comprehensive income (loss), net of tax (242) 291 (490) 106 Ending balance $ (1,400) $ (1,381) $ (1,400) $ (1,381) Pension and other postretirement benefits Beginning balance $ (47) $ (15) $ (32) $ (3) Current year prior service credit (cost) — (2) — — Less: Tax provision /(benefit) — (1) — (1) Net current year prior service credit (cost) — (1) — 1 Amortization of prior service (credit) cost (11) (9) (31) (28) Less: Tax provision /(benefit) (3) (2) (8) (7) Net amortization of prior service (credit) cost (8) (7) (23) (21) Other comprehensive income (loss), net of tax (8) (8) (23) (20) Ending balance $ (55) $ (23) $ (55) $ (23) Derivative financial instruments Beginning balance $ 12 $ (169) $ — $ (97) Gains (losses) deferred 45 5 141 (93) Less: Tax provision /(benefit) 3 2 22 (21) Net gains (losses) deferred 42 3 119 (72) (Gains) losses reclassified to earnings (85) 93 (164) 98 Less: Tax provision /(benefit) (12) 20 (26) 22 Net (gains) losses reclassified to earnings (73) 73 (138) 76 Other comprehensive income (loss), net of tax (31) 76 (19) 4 Ending balance $ (19) $ (93) $ (19) $ (93) Available-for-sale securities Beginning balance $ 39 $ 41 $ 54 $ 20 Gains (losses) deferred (4) 8 (22) 38 Less: Tax provision /(benefit) — — (4) 9 Net gains (losses) deferred (4) 8 (18) 29 (Gains) losses reclassified to earnings (1) — (3) — Less: Tax provision /(benefit) — — (1) — Net (gains) losses reclassified to earnings (1) — (2) — Other comprehensive income (loss), net of tax (5) 8 (20) 29 Ending balance $ 34 $ 49 $ 34 $ 49 Total AOCI Ending Balance at September 30 $ (1,440) $ (1,448) $ (1,440) $ (1,448)

Environmental and legal matters

Environmental and legal matters	9 Months Ended
	Sep. 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 in the Consolidated Statement of Financial Position. We believe there is no more than a remote chance that a material amount for remedial activities at any individual site, or at all the sites in the aggregate, will be required. On January 7, 2015, the Company received a grand jury subpoena from the U.S. District Court for the Central District of Illinois. The subpoena 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	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income taxes The provision for income taxes for the nine months ended September 30, 2021 reflected an estimated annual tax rate of 25 percent, compared with 31 percent for the nine months ended September 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 $61 million for the nine months ended September 30, 2021, compared with $21 million for the nine months ended September 30, 2020, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company also recorded a discrete tax benefit of $36 million to reflect changes in estimates related to prior year U.S. taxes for the nine months ended September 30, 2021 compared to $80 million for the nine months ended September 30, 2020. Finally, we recorded a $10 million tax charge related to the $55 million of remeasurement net gain resulting from the settlements of pension obligations for the nine months ended September 30, 2020. 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	9 Months Ended
	Sep. 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 nine months ended September 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 September 30, 2021 Construction Industries $ 2,417 $ 528 $ 1,240 $ 1,076 $ 5,261 $ (6) $ 5,255 Resource Industries 674 417 456 744 2,291 115 2,406 Energy & Transportation 1,924 329 1,144 744 4,141 936 5,077 Financial Products Segment 478 68 105 111 762 1 — 762 Total sales and revenues from reportable segments 5,493 1,342 2,945 2,675 12,455 1,045 13,500 All Other operating segment 18 — 3 14 35 84 119 Corporate Items and Eliminations (56) (13) (9) (15) (93) (1,129) (1,222) Total Sales and Revenues $ 5,455 $ 1,329 $ 2,939 $ 2,674 $ 12,397 $ — $ 12,397 Three Months Ended September 30, 2020 Construction Industries $ 1,781 $ 230 $ 796 $ 1,241 $ 4,048 $ 8 $ 4,056 Resource Industries 487 269 384 564 1,704 112 1,816 Energy & Transportation 1,584 221 1,113 557 3,475 686 4,161 Financial Products Segment 448 63 100 113 724 1 — 724 Total sales and revenues from reportable segments 4,300 783 2,393 2,475 9,951 806 10,757 All Other operating segment 10 1 1 13 25 81 106 Corporate Items and Eliminations (59) (12) (10) (14) (95) (887) (982) Total Sales and Revenues $ 4,251 $ 772 $ 2,384 $ 2,474 $ 9,881 $ — $ 9,881 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $87 million and $81 million in the three months ended September 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 Nine Months Ended September 30, 2021 Construction Industries $ 7,041 $ 1,350 $ 3,612 $ 4,302 $ 16,305 $ 65 $ 16,370 Resource Industries 2,130 1,309 1,455 1,965 6,859 342 7,201 Energy & Transportation 5,698 835 3,433 1,953 11,919 2,640 14,559 Financial Products Segment 1,442 195 301 359 2,297 1 — 2,297 Total sales and revenues from reportable segments 16,311 3,689 8,801 8,579 37,380 3,047 40,427 All Other operating segment 42 1 10 54 107 270 377 Corporate Items and Eliminations (188) (36) (27) (63) (314) (3,317) (3,631) Total Sales and Revenues $ 16,165 $ 3,654 $ 8,784 $ 8,570 $ 37,173 $ — $ 37,173 Nine Months Ended September 30, 2020 Construction Industries $ 5,470 $ 707 $ 2,618 $ 3,597 $ 12,392 $ 18 $ 12,410 Resource Industries 1,690 859 1,158 1,686 5,393 333 5,726 Energy & Transportation 5,138 667 3,095 1,734 10,634 2,025 12,659 Financial Products Segment 1,466 193 298 344 2,301 1 — 2,301 Total sales and revenues from reportable segments 13,764 2,426 7,169 7,361 30,720 2,376 33,096 All Other operating segment 22 4 17 38 81 249 330 Corporate Items and Eliminations (169) (36) (32) (51) (288) (2,625) (2,913) Total Sales and Revenues $ 13,617 $ 2,394 $ 7,154 $ 7,348 $ 30,513 $ — $ 30,513 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $263 million and $274 million in the nine months ended September 30, 2021 and 2020, respectively. For the three and nine months ended September 30, 2021 and 2020, Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales Three Months Ended September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Oil and gas $ 1,088 $ 734 $ 3,140 $ 2,622 Power generation 1,010 1,034 3,025 2,783 Industrial 948 730 2,660 2,209 Transportation 1,095 977 3,094 3,020 Energy & Transportation External Sales $ 4,141 $ 3,475 $ 11,919 $ 10,634 Reconciliation of Consolidated profit before taxes: (Millions of dollars) Three Months Ended September 30 Nine Months Ended September 30 2021 2020 2021 2020 Profit from reportable segments: Construction Industries $ 859 $ 585 $ 2,918 $ 1,743 Resource Industries 297 167 986 623 Energy & Transportation 696 492 2,093 1,718 Financial Products Segment 173 142 660 395 Total profit from reportable segments 2,025 1,386 6,657 4,479 Profit from All Other operating segment 5 27 (2) 31 Cost centers 19 9 51 18 Corporate costs (189) (122) (576) (409) Timing (40) (39) (230) (90) Restructuring costs (35) (87) (124) (211) Methodology differences: Inventory/cost of sales 73 (7) 80 (25) Postretirement benefit expense 116 (32) 270 253 Stock-based compensation expense (58) (55) (169) (169) Financing costs (103) (125) (342) (324) Currency 19 (22) 255 (230) Other income/expense methodology differences (80) (72) (201) (244) Other methodology differences 23 2 (27) (25) Total consolidated profit before taxes $ 1,775 $ 863 $ 5,642 $ 3,054 Reconciliation of Assets: (Millions of dollars) September 30, 2021 December 31, 2020 Assets from reportable segments: Construction Industries $ 4,592 $ 4,259 Resource Industries 5,985 6,035 Energy & Transportation 9,305 8,582 Financial Products Segment 34,182 34,278 Total assets from reportable segments 54,064 53,154 Assets from All Other operating segment 1,622 1,717 Items not included in segment assets: Cash and cash equivalents 8,554 8,822 Deferred income taxes 1,639 1,413 Goodwill and intangible assets 4,894 4,847 Property, plant and equipment – net and other assets 3,208 2,833 Inventory methodology differences (2,648) (2,536) Liabilities included in segment assets 9,810 8,466 Other (359) (392) Total assets $ 80,784 $ 78,324 Reconciliation of Depreciation and amortization: (Millions of dollars) Three Months Ended September 30 Nine Months Ended September 30 2021 2020 2021 2020 Depreciation and amortization from reportable segments: Construction Industries $ 60 $ 61 $ 178 $ 183 Resource Industries 101 105 301 312 Energy & Transportation 144 147 428 442 Financial Products Segment 195 174 582 577 Total depreciation and amortization from reportable segments 500 487 1,489 1,514 Items not included in segment depreciation and amortization: All Other operating segment 59 71 181 196 Cost centers 24 31 74 96 Other 10 4 22 9 Total depreciation and amortization $ 593 $ 593 $ 1,766 $ 1,815 Reconciliation of Capital expenditures: (Millions of dollars) Three Months Ended September 30 Nine Months Ended September 30 2021 2020 2021 2020 Capital expenditures from reportable segments: Construction Industries $ 56 $ 37 $ 120 $ 85 Resource Industries 44 10 101 63 Energy & Transportation 115 100 339 331 Financial Products Segment 311 280 900 783 Total capital expenditures from reportable segments 526 427 1,460 1,262 Items not included in segment capital expenditures: All Other operating segment 59 46 106 84 Cost centers 15 8 34 23 Timing (13) 1 96 147 Other — 11 (9) (25) Total capital expenditures $ 587 $ 493 $ 1,687 $ 1,491

Cat Financial Financing Activit

Cat Financial Financing Activities	9 Months Ended
	Sep. 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 50 months with an average remaining term of approximately 27 months as of September 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 nine months ended September 30, 2021, Cat Financial's forecasts for the markets in which it operates reflected a general improvement 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 nine months ended September 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. 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 September 30, 2021 Three Months Ended September 30, 2020 Allowance for Credit Losses: Customer Dealer Total Customer Dealer Total Beginning balance $ 354 $ 44 $ 398 $ 467 $ 45 $ 512 Write-offs (91) — (91) (139) — (139) Recoveries 15 — 15 14 — 14 Provision for credit losses 17 38 55 67 — 67 Other (3) — (3) 3 — 3 Ending balance $ 292 $ 82 $ 374 $ 412 $ 45 $ 457 Nine Months Ended September 30, 2021 Nine Months Ended September 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 (193) — (193) (212) — (212) Recoveries 39 — 39 27 — 27 Provision for credit losses 20 38 58 213 — 213 Other (5) — (5) (3) — (3) Ending balance $ 292 $ 82 $ 374 $ 412 $ 45 $ 457 Individually evaluated $ 118 $ 78 $ 196 $ 172 $ 39 $ 211 Collectively evaluated 174 4 178 240 6 246 Ending Balance $ 292 $ 82 $ 374 $ 412 $ 45 $ 457 Finance Receivables: Individually evaluated $ 374 $ 78 $ 452 $ 612 $ 78 $ 690 Collectively evaluated 19,593 1,853 21,446 17,967 2,975 20,942 Ending Balance $ 19,967 $ 1,931 $ 21,898 $ 18,579 $ 3,053 $ 21,632 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) September 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Finance Receivables North America Current $ 3,635 $ 2,914 $ 1,675 $ 785 $ 246 $ 66 $ 167 $ 9,488 31-60 days past due 13 31 23 15 6 1 3 92 61-90 days past due 6 9 8 5 2 — 3 33 91+ days past due 5 17 22 12 8 5 6 75 EAME Current 1,330 1,117 571 269 93 25 — 3,405 31-60 days past due 8 7 5 1 1 — — 22 61-90 days past due 3 4 9 2 — — — 18 91+ days past due 2 15 7 5 1 24 — 54 Asia/Pacific Current 1,071 929 390 102 22 4 — 2,518 31-60 days past due 9 17 14 5 2 — — 47 61-90 days past due 3 10 7 1 — — — 21 91+ days past due 1 11 11 6 — — — 29 Mining Current 656 382 417 230 67 164 66 1,982 31-60 days past due 2 — 8 9 3 — — 22 61-90 days past due — 2 — — — — — 2 91+ days past due — 1 2 4 2 — — 9 Latin America Current 472 377 192 71 19 10 — 1,141 31-60 days past due 4 11 4 3 2 — — 24 61-90 days past due 2 3 3 2 1 1 — 12 91+ days past due — 18 8 5 5 4 — 40 Caterpillar Power Finance Current 109 141 98 75 197 141 102 863 31-60 days past due — — — 2 — — — 2 61-90 days past due — — — — — — — — 91+ days past due 1 2 — 20 1 44 — 68 Total Customer $ 7,332 $ 6,018 $ 3,474 $ 1,629 $ 678 $ 489 $ 347 $ 19,967 (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 September 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: September 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 $ 54 $ 7 $ 17 $ 86 $ 1 $ 34 EAME 50 1 4 113 1 1 Asia/Pacific 21 — 9 13 — 13 Mining 9 1 — 21 1 — Latin America 42 — 1 63 — 1 Caterpillar Power Finance 75 — — 170 17 — Total $ 251 $ 9 $ 31 $ 466 $ 20 $ 49 There was $1 million and $2 million of interest income recognized during the three months ended September 30, 2021 and 2020, respectively, for customer finance receivables on non-accrual status. There was $9 million and $8 million of interest income recognized during the nine months ended September 30, 2021 and 2020, respectively, for customer finance receivables on non-accrual status. As of September 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 September 30, 2021 and December 31, 2020 and no interest income was recognized on dealer finance receivables on non-accrual status during the three and nine months ended September 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 nine months ended September 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 September 30, 2021 Three Months Ended September 30, 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR Customer North America $ 1 $ 1 $ 1 $ 1 EAME 1 1 — — Asia/Pacific 4 4 4 4 Mining — — 5 5 Latin America 4 4 16 16 Caterpillar Power Finance 7 3 50 50 Total $ 17 $ 13 $ 76 $ 76 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR North America $ 5 $ 5 $ 10 $ 10 EAME 1 1 — — Asia/Pacific 4 4 12 12 Mining 11 5 22 22 Latin America 10 10 18 18 Caterpillar Power Finance 23 19 87 87 Total $ 54 $ 44 $ 149 $ 149 The Post-TDR amortized 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 September 30 Nine Months Ended September 30 Customer 2021 2020 2021 2020 North America $ — $ 6 $ 1 $ 6 EAME — — — 10 Asia/Pacific — — 6 — Mining — 1 — 1 Latin America — — 15 1 Caterpillar Power Finance — 18 5 18 Total $ — $ 25 $ 27 $ 36

Fair Value Disclosures

Fair Value Disclosures	9 Months Ended
	Sep. 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. We also have investments in time deposits classified as held-to-maturity debt securities. The fair value of these investments is based upon valuations observed in less active markets than Level 1. These investments have a maturity of less than one year and are recorded at amortized costs, which approximate fair value. 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 September 30, 2021 and December 31, 2020 were as follows: September 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 — 57 — — 57 Corporate bonds Corporate bonds — 1,035 — — 1,035 Asset-backed securities — 148 — — 148 Mortgage-backed debt securities U.S. governmental agency — 349 — — 349 Residential — 4 — — 4 Commercial — 100 — — 100 Total debt securities 10 1,693 — — 1,703 Equity securities Large capitalization value 196 — — — 196 Smaller company growth 86 — — — 86 REIT — — — 158 158 Total equity securities 282 — — 158 440 Derivative financial instruments, net — 227 — — 227 Total assets $ 292 $ 1,920 $ — $ 158 $ 2,370 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 $150 million and $243 million as of September 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 cash equivalents 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 September 30, 2021 December 31, 2020 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and cash equivalents $ 9,446 $ 9,446 $ 9,352 $ 9,352 1 Restricted cash and short-term investments 1 546 546 14 14 1 & 2 Note 8 Investments in AFS debt and equity securities 2,143 2,143 2,088 2,088 1 & 2 Note 8 Finance receivables – net (excluding finance leases 2 ) 13,785 13,921 14,028 14,357 3 Note 17 Wholesale inventory receivables – net (excluding finance leases 2 ) 819 800 929 911 3 Foreign currency contracts – net 193 193 — — 2 Note 5 Interest rate contracts – net 27 27 58 58 2 Note 5 Commodity contracts – net 7 7 37 37 2 Note 5 Liabilities Short-term borrowings 3,247 3,247 2,015 2,015 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,807 12,449 11,169 14,549 2 Financial Products 23,730 24,118 23,979 24,614 2 Foreign currency contracts – net — — 112 112 2 Note 5 Guarantees 5 5 5 5 3 Note 11 1 Includes time deposits of $543 million as of September 30, 2021. There were no time deposits as of December 31, 2020. See Note 8 for additional information. 2 Represents finance leases and failed sale leasebacks of $8,065 million and $7,961 million at September 30, 2021 and December 31, 2020, respectively.

Other Income (expense)

Other Income (expense)	9 Months Ended
	Sep. 30, 2021
Other Income and Expenses [Abstract]
Other income (expense)	Other income (expense) Three Months Ended September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Investment and interest income $ 20 $ 21 $ 64 $ 91 Foreign exchange gains (losses) 1 47 (43) 110 (122) License fee income 31 27 88 75 Net periodic pension and OPEB income (cost), excluding service cost 111 — 2 333 270 2 Gains (losses) on securities 50 9 92 (12) Miscellaneous income (loss) (34) — 64 (37) Total $ 225 $ 14 $ 751 $ 265 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 5 for further details. 2 Includes a net remeasurement loss of $(77) million and a net remeasurement gain of $55 million for the three and nine months ended September 30, 2020, respectively, from the settlement of certain pension obligations. See Note 9 for further details.

Restructuring Costs

Restructuring Costs	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020 were as follows: (Millions of dollars) Three Months Ended September 30 Nine Months Ended September 30 2021 2020 2021 2020 Employee separations 1 $ 17 $ 98 $ 79 $ 232 Contract terminations 1 1 — 1 3 Long-lived asset impairments 1 8 2 12 25 Other 2 9 12 32 36 Total restructuring costs $ 35 $ 112 $ 124 $ 296 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for accelerated depreciation, inventory write-downs, equipment relocation and project management, all of which are primarily included in Cost of goods sold. For the nine months ended September 30, 2021, the restructuring costs were primarily related to actions across the company including strategic actions to address certain product lines. For the nine months ended September 30, 2020, the restructuring costs were primarily related to various voluntary and involuntary employee separation programs implemented across the company and strategic actions to address certain product lines, 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 September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Construction Industries $ — $ 2 $ — $ 7 Resource Industries — 2 — 18 Energy & Transportation — 18 — 39 Financial Products Segment — 1 — 2 The following table summarizes the 2021 and 2020 employee separation activity: (Millions of dollars) Nine Months Ended September 30 2021 2020 Liability balance, beginning of period $ 164 $ 48 Increase in liability (separation charges) 79 232 Reduction in liability (payments) (159) (131) Liability balance, end of period $ 84 $ 149

Acquisitions

Acquisitions	9 Months Ended
	Sep. 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 $515 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 $32 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)	9 Months Ended
	Sep. 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 September 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)	9 Months Ended
	Sep. 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 nine months ended September 30, 2021 and 2020, respectively: Nine Months Ended September 30, 2021 Nine Months Ended September 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 nine months ended September 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)	9 Months Ended
	Sep. 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 September 30, 2021 December 31, 2020 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 44 $ 74 Machinery, Energy & Transportation Long-term receivables – trade and other 33 71 Machinery, Energy & Transportation Accrued expenses (23) (36) Machinery, Energy & Transportation Other liabilities (7) (1) Financial Products Receivables – trade and other — 1 Financial Products Long-term receivables – trade and other 115 1 Financial Products Accrued expenses (21) (148) Interest rate contracts Machinery, Energy & Transportation Long-term receivables – trade and other — 4 Financial Products Receivables – trade and other 8 2 Financial Products Long-term receivables – trade and other 27 57 Financial Products Accrued expenses (8) (5) $ 168 $ 20 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables – trade and other $ 13 $ 10 Machinery, Energy & Transportation Long-term receivables – trade and other 1 — Machinery, Energy & Transportation Accrued expenses (10) (1) Financial Products Receivables – trade and other 54 17 Financial Products Long-term receivables – trade and other 6 7 Financial Products Accrued expenses (12) (107) Commodity contracts Machinery, Energy & Transportation Receivables – trade and other 29 35 Machinery, Energy & Transportation Long-term receivables – trade and other 2 2 Machinery, Energy & Transportation Accrued expenses (23) — Machinery, Energy & Transportation Other liabilities (1) — $ 59 $ (37)
Total notional amounts of derivative instruments	The total notional amounts of the derivative instruments were as follows: (Millions of dollars) September 30, 2021 December 31, 2020 Machinery, Energy & Transportation $ 4,742 $ 3,553 Financial Products $ 11,069 $ 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 September 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 $ (47) Sales of Machinery, Energy & Transportation $ 2 $ 11,707 Cost of goods sold 4 8,617 Financial Products 89 Interest expense of Financial Products (3) 111 Other income (expense) 87 225 Interest rate contracts Financial Products 3 Interest expense of Financial Products (5) 111 $ 45 $ 85 Three Months Ended September 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 $ 66 Sales of Machinery, Energy & Transportation $ (6) $ 9,228 Cost of goods sold (15) 6,919 Financial Products (64) Interest expense of Financial Products 8 137 Other income (expense) (63) 14 Interest rate contracts Machinery, Energy & Transportation 2 Interest expense excluding Financial Products (1) 136 Financial Products 1 Interest expense of Financial Products (16) 137 $ 5 $ (93) Cash Flow Hedges Nine Months Ended September 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 $ (40) Sales of Machinery, Energy & Transportation $ (21) $ 35,091 Cost of goods sold 42 25,510 Financial Products 170 Interest expense of Financial Products (1) 352 Other income (expense) 167 751 Interest rate contracts Machinery, Energy & Transportation 7 Interest expense excluding Financial Products (2) 376 Financial Products 4 Interest expense of Financial Products (21) 352 $ 141 $ 164 Nine Months Ended September 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 $ (58) Sales of Machinery, Energy & Transportation $ 10 $ 28,452 Cost of goods sold (58) 21,298 Financial Products 2 Interest expense of Financial Products 28 461 Other income (expense) (35) 265 Interest rate contracts Machinery, Energy & Transportation (14) Interest expense excluding Financial Products (3) 384 Financial Products (23) Interest expense of Financial Products (40) 461 $ (93) $ (98)
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 September 30, 2021 Three Months Ended September 30, 2020 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 2 $ 8 Financial Products Other income (expense) 44 (73) Commodity contracts Machinery, Energy & Transportation Other income (expense) (30) 6 $ 16 $ (59) Classification of Gains (Losses) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 5 $ 21 Financial Products Other income (expense) 72 12 Commodity contracts Machinery, Energy & Transportation Other income (expense) 35 (25) $ 112 $ 8
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: September 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 $ 122 $ — $ 122 $ (53) $ — $ 69 Financial Products 210 — 210 (39) — 171 Total $ 332 $ — $ 332 $ (92) $ — $ 240 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	September 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 $ (64) $ — $ (64) $ 53 $ — $ (11) Financial Products (41) — (41) 39 — (2) Total $ (105) $ — $ (105) $ 92 $ — $ (13) 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)	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories (principally using the last-in, first-out (LIFO) method) were comprised of the following: (Millions of dollars) September 30, December 31, Raw materials $ 5,144 $ 4,021 Work-in-process 1,522 1,052 Finished goods 6,707 6,054 Supplies 293 275 Total inventories $ 13,666 $ 11,402

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets were comprised of the following: September 30, 2021 (Millions of dollars) Weighted Gross Accumulated Net Customer relationships 15 $ 2,436 $ (1,682) $ 754 Intellectual property 12 1,473 (1,160) 313 Other 15 157 (103) 54 Total finite-lived intangible assets 14 $ 4,066 $ (2,945) $ 1,121 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 Three Months of 2021 2022 2023 2024 2025 Thereafter $74 $287 $228 $170 $160 $202
Goodwill acquired	The changes in carrying amount of goodwill by reportable segment for the nine months ended September 30, 2021 were as follows: (Millions of dollars) December 31, Acquisitions 1 Other Adjustments 2 September 30, Construction Industries Goodwill $ 320 $ 4 $ (17) $ 307 Impairments (22) — — (22) Net goodwill 298 4 (17) 285 Resource Industries Goodwill 4,253 22 (62) 4,213 Impairments (1,175) — — (1,175) Net goodwill 3,078 22 (62) 3,038 Energy & Transportation Goodwill 2,959 51 (35) 2,975 All Other 3 Goodwill 59 — (4) 55 Consolidated total Goodwill 7,591 77 (118) 7,550 Impairments (1,197) — — (1,197) Net goodwill $ 6,394 $ 77 $ (118) $ 6,353 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)	9 Months Ended
	Sep. 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 available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows: Available-for-sale debt securities September 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 — 57 58 1 59 Corporate bonds Corporate bonds 1,004 31 1,035 962 50 1,012 Asset-backed securities 146 2 148 156 3 159 Mortgage-backed debt securities U.S. governmental agency 340 9 349 362 12 374 Residential 4 — 4 5 — 5 Commercial 97 3 100 60 4 64 Total available-for-sale debt securities $ 1,658 $ 45 $ 1,703 $ 1,613 $ 70 $ 1,683
Investments in an unrealized loss position that are not other-than-temporarily impaired:	Available-for-sale debt securities in an unrealized loss position: September 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 $ 215 $ 2 $ 6 $ — $ 221 $ 2 Total $ 215 $ 2 $ 6 $ — $ 221 $ 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 $ — Total $ 13 $ — $ 4 $ — $ 17 $ — 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 available-for-sale debt securities at September 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. September 30, 2021 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 154 $ 156 Due after one year through five years 730 753 Due after five years through ten years 271 278 Due after ten years 62 63 U.S. governmental agency mortgage-backed securities 340 349 Residential mortgage-backed securities 4 4 Commercial mortgage-backed securities 97 100 Total debt securities – available-for-sale $ 1,658 $ 1,703
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities	Sales of available-for-sale debt securities: Three Months Ended September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Proceeds from the sale of available-for-sale securities $ 97 $ 74 $ 322 $ 197 Gross gains from the sale of available-for-sale securities 1 — 3 1 Gross losses from the sale of available-for-sale securities — — — 1

Postretirement Benefits (Tables

Postretirement Benefits (Tables)	9 Months Ended
	Sep. 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) September 30 September 30 September 30 2021 2020 2021 2020 2021 2020 For the three months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 15 $ 13 $ 25 $ 24 Interest cost 82 120 16 17 16 26 Expected return on plan assets (180) (197) (33) (34) (1) (4) Amortization of prior service cost (credit) — — — — (11) (9) (Gain) loss on remeasurement of pension obligations 1 — (2) — 79 — — Curtailments, settlements and termination benefits 1 — — — 4 — — Net periodic benefit cost (benefit) 2 $ (98) $ (79) $ (2) $ 79 $ 29 $ 37 For the nine months ended: Components of net periodic benefit cost: Service cost $ — $ — $ 44 $ 41 $ 75 $ 71 Interest cost 247 362 43 57 48 79 Expected return on plan assets (538) (593) (98) (107) (4) (10) Amortization of prior service cost (credit) — — — — (31) (28) (Gain) loss on remeasurement of pension obligations 1 — — — (55) — — Curtailments, settlements and termination benefits 1 — — — 25 — — Net periodic benefit cost (benefit) 2 $ (291) $ (231) $ (11) $ (39) $ 88 $ 112 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, June 30, 2020 and September 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 September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 U.S. Plans $ 81 $ 103 $ 321 $ 248 Non-U.S. Plans 29 22 83 65 $ 110 $ 125 $ 404 $ 313

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Revenue from finance and operating 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 September 30 Nine Months Ended September 30 2021 2020 2021 2020 Finance lease revenue $ 120 $ 125 $ 369 $ 369 Operating lease revenue 275 249 850 837 Total $ 395 $ 374 $ 1,219 $ 1,206

Guarantees and Product Warran_2

Guarantees and Product Warranty (Tables)	9 Months Ended
	Sep. 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) September 30, December 31, Caterpillar dealer performance guarantees $ 908 $ 993 Supplier consortium performance guarantee 247 258 Other guarantees 248 234 Total guarantees $ 1,403 $ 1,485
Product warranty	We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience. First Nine Months (Millions of dollars) 2021 2020 Warranty liability, beginning of period $ 1,612 $ 1,541 Reduction in liability (payments) (638) (652) Increase in liability (new warranties) 716 678 Warranty liability, end of period $ 1,690 $ 1,567

Profit Per Share (Tables)

Profit Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Computations of profit per share	Computations of profit per share: Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions except per share data) 2021 2020 2021 2020 Profit for the period (A) 1 $ 1,426 $ 668 $ 4,369 $ 2,218 Determination of shares (in millions): Weighted-average number of common shares outstanding (B) 544.0 542.3 545.8 543.9 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 3.6 4.1 4.4 3.9 Average common shares outstanding for fully diluted computation (C) 2 547.6 546.4 550.2 547.8 Profit per share of common stock: Assuming no dilution (A/B) $ 2.62 $ 1.23 $ 8.00 $ 4.08 Assuming full dilution (A/C) 2 $ 2.60 $ 1.22 $ 7.94 $ 4.05 Shares outstanding as of September 30 (in millions) 540.9 543.3 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)	9 Months Ended
	Sep. 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 September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Foreign currency translation: Beginning balance $ (1,158) $ (1,672) $ (910) $ (1,487) Gains (losses) on foreign currency translation (230) 270 (461) 64 Less: Tax provision /(benefit) 12 (21) 29 (20) Net gains (losses) on foreign currency translation (242) 291 (490) 84 (Gains) losses reclassified to earnings — — — 22 Less: Tax provision /(benefit) — — — — Net (gains) losses reclassified to earnings — — — 22 Other comprehensive income (loss), net of tax (242) 291 (490) 106 Ending balance $ (1,400) $ (1,381) $ (1,400) $ (1,381) Pension and other postretirement benefits Beginning balance $ (47) $ (15) $ (32) $ (3) Current year prior service credit (cost) — (2) — — Less: Tax provision /(benefit) — (1) — (1) Net current year prior service credit (cost) — (1) — 1 Amortization of prior service (credit) cost (11) (9) (31) (28) Less: Tax provision /(benefit) (3) (2) (8) (7) Net amortization of prior service (credit) cost (8) (7) (23) (21) Other comprehensive income (loss), net of tax (8) (8) (23) (20) Ending balance $ (55) $ (23) $ (55) $ (23) Derivative financial instruments Beginning balance $ 12 $ (169) $ — $ (97) Gains (losses) deferred 45 5 141 (93) Less: Tax provision /(benefit) 3 2 22 (21) Net gains (losses) deferred 42 3 119 (72) (Gains) losses reclassified to earnings (85) 93 (164) 98 Less: Tax provision /(benefit) (12) 20 (26) 22 Net (gains) losses reclassified to earnings (73) 73 (138) 76 Other comprehensive income (loss), net of tax (31) 76 (19) 4 Ending balance $ (19) $ (93) $ (19) $ (93) Available-for-sale securities Beginning balance $ 39 $ 41 $ 54 $ 20 Gains (losses) deferred (4) 8 (22) 38 Less: Tax provision /(benefit) — — (4) 9 Net gains (losses) deferred (4) 8 (18) 29 (Gains) losses reclassified to earnings (1) — (3) — Less: Tax provision /(benefit) — — (1) — Net (gains) losses reclassified to earnings (1) — (2) — Other comprehensive income (loss), net of tax (5) 8 (20) 29 Ending balance $ 34 $ 49 $ 34 $ 49 Total AOCI Ending Balance at September 30 $ (1,440) $ (1,448) $ (1,440) $ (1,448)

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Disaggregation of Revenue	For the three and nine months ended September 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 September 30, 2021 Construction Industries $ 2,417 $ 528 $ 1,240 $ 1,076 $ 5,261 $ (6) $ 5,255 Resource Industries 674 417 456 744 2,291 115 2,406 Energy & Transportation 1,924 329 1,144 744 4,141 936 5,077 Financial Products Segment 478 68 105 111 762 1 — 762 Total sales and revenues from reportable segments 5,493 1,342 2,945 2,675 12,455 1,045 13,500 All Other operating segment 18 — 3 14 35 84 119 Corporate Items and Eliminations (56) (13) (9) (15) (93) (1,129) (1,222) Total Sales and Revenues $ 5,455 $ 1,329 $ 2,939 $ 2,674 $ 12,397 $ — $ 12,397 Three Months Ended September 30, 2020 Construction Industries $ 1,781 $ 230 $ 796 $ 1,241 $ 4,048 $ 8 $ 4,056 Resource Industries 487 269 384 564 1,704 112 1,816 Energy & Transportation 1,584 221 1,113 557 3,475 686 4,161 Financial Products Segment 448 63 100 113 724 1 — 724 Total sales and revenues from reportable segments 4,300 783 2,393 2,475 9,951 806 10,757 All Other operating segment 10 1 1 13 25 81 106 Corporate Items and Eliminations (59) (12) (10) (14) (95) (887) (982) Total Sales and Revenues $ 4,251 $ 772 $ 2,384 $ 2,474 $ 9,881 $ — $ 9,881 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $87 million and $81 million in the three months ended September 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 Nine Months Ended September 30, 2021 Construction Industries $ 7,041 $ 1,350 $ 3,612 $ 4,302 $ 16,305 $ 65 $ 16,370 Resource Industries 2,130 1,309 1,455 1,965 6,859 342 7,201 Energy & Transportation 5,698 835 3,433 1,953 11,919 2,640 14,559 Financial Products Segment 1,442 195 301 359 2,297 1 — 2,297 Total sales and revenues from reportable segments 16,311 3,689 8,801 8,579 37,380 3,047 40,427 All Other operating segment 42 1 10 54 107 270 377 Corporate Items and Eliminations (188) (36) (27) (63) (314) (3,317) (3,631) Total Sales and Revenues $ 16,165 $ 3,654 $ 8,784 $ 8,570 $ 37,173 $ — $ 37,173 Nine Months Ended September 30, 2020 Construction Industries $ 5,470 $ 707 $ 2,618 $ 3,597 $ 12,392 $ 18 $ 12,410 Resource Industries 1,690 859 1,158 1,686 5,393 333 5,726 Energy & Transportation 5,138 667 3,095 1,734 10,634 2,025 12,659 Financial Products Segment 1,466 193 298 344 2,301 1 — 2,301 Total sales and revenues from reportable segments 13,764 2,426 7,169 7,361 30,720 2,376 33,096 All Other operating segment 22 4 17 38 81 249 330 Corporate Items and Eliminations (169) (36) (32) (51) (288) (2,625) (2,913) Total Sales and Revenues $ 13,617 $ 2,394 $ 7,154 $ 7,348 $ 30,513 $ — $ 30,513 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $263 million and $274 million in the nine months ended September 30, 2021 and 2020, respectively. For the three and nine months ended September 30, 2021 and 2020, Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales Three Months Ended September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Oil and gas $ 1,088 $ 734 $ 3,140 $ 2,622 Power generation 1,010 1,034 3,025 2,783 Industrial 948 730 2,660 2,209 Transportation 1,095 977 3,094 3,020 Energy & Transportation External Sales $ 4,141 $ 3,475 $ 11,919 $ 10,634
Reconciliation of Consolidated profit before taxes	Reconciliation of Consolidated profit before taxes: (Millions of dollars) Three Months Ended September 30 Nine Months Ended September 30 2021 2020 2021 2020 Profit from reportable segments: Construction Industries $ 859 $ 585 $ 2,918 $ 1,743 Resource Industries 297 167 986 623 Energy & Transportation 696 492 2,093 1,718 Financial Products Segment 173 142 660 395 Total profit from reportable segments 2,025 1,386 6,657 4,479 Profit from All Other operating segment 5 27 (2) 31 Cost centers 19 9 51 18 Corporate costs (189) (122) (576) (409) Timing (40) (39) (230) (90) Restructuring costs (35) (87) (124) (211) Methodology differences: Inventory/cost of sales 73 (7) 80 (25) Postretirement benefit expense 116 (32) 270 253 Stock-based compensation expense (58) (55) (169) (169) Financing costs (103) (125) (342) (324) Currency 19 (22) 255 (230) Other income/expense methodology differences (80) (72) (201) (244) Other methodology differences 23 2 (27) (25) Total consolidated profit before taxes $ 1,775 $ 863 $ 5,642 $ 3,054
Reconciliation of Assets:	Reconciliation of Assets: (Millions of dollars) September 30, 2021 December 31, 2020 Assets from reportable segments: Construction Industries $ 4,592 $ 4,259 Resource Industries 5,985 6,035 Energy & Transportation 9,305 8,582 Financial Products Segment 34,182 34,278 Total assets from reportable segments 54,064 53,154 Assets from All Other operating segment 1,622 1,717 Items not included in segment assets: Cash and cash equivalents 8,554 8,822 Deferred income taxes 1,639 1,413 Goodwill and intangible assets 4,894 4,847 Property, plant and equipment – net and other assets 3,208 2,833 Inventory methodology differences (2,648) (2,536) Liabilities included in segment assets 9,810 8,466 Other (359) (392) Total assets $ 80,784 $ 78,324
Reconciliation of Depreciation and amortization:	Reconciliation of Depreciation and amortization: (Millions of dollars) Three Months Ended September 30 Nine Months Ended September 30 2021 2020 2021 2020 Depreciation and amortization from reportable segments: Construction Industries $ 60 $ 61 $ 178 $ 183 Resource Industries 101 105 301 312 Energy & Transportation 144 147 428 442 Financial Products Segment 195 174 582 577 Total depreciation and amortization from reportable segments 500 487 1,489 1,514 Items not included in segment depreciation and amortization: All Other operating segment 59 71 181 196 Cost centers 24 31 74 96 Other 10 4 22 9 Total depreciation and amortization $ 593 $ 593 $ 1,766 $ 1,815
Reconciliation of Capital expenditures:	Reconciliation of Capital expenditures: (Millions of dollars) Three Months Ended September 30 Nine Months Ended September 30 2021 2020 2021 2020 Capital expenditures from reportable segments: Construction Industries $ 56 $ 37 $ 120 $ 85 Resource Industries 44 10 101 63 Energy & Transportation 115 100 339 331 Financial Products Segment 311 280 900 783 Total capital expenditures from reportable segments 526 427 1,460 1,262 Items not included in segment capital expenditures: All Other operating segment 59 46 106 84 Cost centers 15 8 34 23 Timing (13) 1 96 147 Other — 11 (9) (25) Total capital expenditures $ 587 $ 493 $ 1,687 $ 1,491

Cat Financial Financing Activ_2

Cat Financial Financing Activities (Tables)	9 Months Ended
	Sep. 30, 2021	Sep. 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 September 30, 2021 Three Months Ended September 30, 2020 Allowance for Credit Losses: Customer Dealer Total Customer Dealer Total Beginning balance $ 354 $ 44 $ 398 $ 467 $ 45 $ 512 Write-offs (91) — (91) (139) — (139) Recoveries 15 — 15 14 — 14 Provision for credit losses 17 38 55 67 — 67 Other (3) — (3) 3 — 3 Ending balance $ 292 $ 82 $ 374 $ 412 $ 45 $ 457 Nine Months Ended September 30, 2021 Nine Months Ended September 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 (193) — (193) (212) — (212) Recoveries 39 — 39 27 — 27 Provision for credit losses 20 38 58 213 — 213 Other (5) — (5) (3) — (3) Ending balance $ 292 $ 82 $ 374 $ 412 $ 45 $ 457 Individually evaluated $ 118 $ 78 $ 196 $ 172 $ 39 $ 211 Collectively evaluated 174 4 178 240 6 246 Ending Balance $ 292 $ 82 $ 374 $ 412 $ 45 $ 457 Finance Receivables: Individually evaluated $ 374 $ 78 $ 452 $ 612 $ 78 $ 690 Collectively evaluated 19,593 1,853 21,446 17,967 2,975 20,942 Ending Balance $ 19,967 $ 1,931 $ 21,898 $ 18,579 $ 3,053 $ 21,632 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) September 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Finance Receivables North America Current $ 3,635 $ 2,914 $ 1,675 $ 785 $ 246 $ 66 $ 167 $ 9,488 31-60 days past due 13 31 23 15 6 1 3 92 61-90 days past due 6 9 8 5 2 — 3 33 91+ days past due 5 17 22 12 8 5 6 75 EAME Current 1,330 1,117 571 269 93 25 — 3,405 31-60 days past due 8 7 5 1 1 — — 22 61-90 days past due 3 4 9 2 — — — 18 91+ days past due 2 15 7 5 1 24 — 54 Asia/Pacific Current 1,071 929 390 102 22 4 — 2,518 31-60 days past due 9 17 14 5 2 — — 47 61-90 days past due 3 10 7 1 — — — 21 91+ days past due 1 11 11 6 — — — 29 Mining Current 656 382 417 230 67 164 66 1,982 31-60 days past due 2 — 8 9 3 — — 22 61-90 days past due — 2 — — — — — 2 91+ days past due — 1 2 4 2 — — 9 Latin America Current 472 377 192 71 19 10 — 1,141 31-60 days past due 4 11 4 3 2 — — 24 61-90 days past due 2 3 3 2 1 1 — 12 91+ days past due — 18 8 5 5 4 — 40 Caterpillar Power Finance Current 109 141 98 75 197 141 102 863 31-60 days past due — — — 2 — — — 2 61-90 days past due — — — — — — — — 91+ days past due 1 2 — 20 1 44 — 68 Total Customer $ 7,332 $ 6,018 $ 3,474 $ 1,629 $ 678 $ 489 $ 347 $ 19,967 (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: September 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 $ 54 $ 7 $ 17 $ 86 $ 1 $ 34 EAME 50 1 4 113 1 1 Asia/Pacific 21 — 9 13 — 13 Mining 9 1 — 21 1 — Latin America 42 — 1 63 — 1 Caterpillar Power Finance 75 — — 170 17 — Total $ 251 $ 9 $ 31 $ 466 $ 20 $ 49 There was $1 million and $2 million of interest income recognized during the three months ended September 30, 2021 and 2020, respectively, for customer finance receivables on non-accrual status. There was $9 million and $8 million of interest income recognized during the nine months ended September 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 September 30, 2021 Three Months Ended September 30, 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR Customer North America $ 1 $ 1 $ 1 $ 1 EAME 1 1 — — Asia/Pacific 4 4 4 4 Mining — — 5 5 Latin America 4 4 16 16 Caterpillar Power Finance 7 3 50 50 Total $ 17 $ 13 $ 76 $ 76 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR North America $ 5 $ 5 $ 10 $ 10 EAME 1 1 — — Asia/Pacific 4 4 12 12 Mining 11 5 22 22 Latin America 10 10 18 18 Caterpillar Power Finance 23 19 87 87 Total $ 54 $ 44 $ 149 $ 149 The Post-TDR amortized 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 September 30 Nine Months Ended September 30 Customer 2021 2020 2021 2020 North America $ — $ 6 $ 1 $ 6 EAME — — — 10 Asia/Pacific — — 6 — Mining — 1 — 1 Latin America — — 15 1 Caterpillar Power Finance — 18 5 18 Total $ — $ 25 $ 27 $ 36

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	9 Months Ended
	Sep. 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 September 30, 2021 and December 31, 2020 were as follows: September 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 — 57 — — 57 Corporate bonds Corporate bonds — 1,035 — — 1,035 Asset-backed securities — 148 — — 148 Mortgage-backed debt securities U.S. governmental agency — 349 — — 349 Residential — 4 — — 4 Commercial — 100 — — 100 Total debt securities 10 1,693 — — 1,703 Equity securities Large capitalization value 196 — — — 196 Smaller company growth 86 — — — 86 REIT — — — 158 158 Total equity securities 282 — — 158 440 Derivative financial instruments, net — 227 — — 227 Total assets $ 292 $ 1,920 $ — $ 158 $ 2,370 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 September 30, 2021 December 31, 2020 (Millions of dollars) Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Assets Cash and cash equivalents $ 9,446 $ 9,446 $ 9,352 $ 9,352 1 Restricted cash and short-term investments 1 546 546 14 14 1 & 2 Note 8 Investments in AFS debt and equity securities 2,143 2,143 2,088 2,088 1 & 2 Note 8 Finance receivables – net (excluding finance leases 2 ) 13,785 13,921 14,028 14,357 3 Note 17 Wholesale inventory receivables – net (excluding finance leases 2 ) 819 800 929 911 3 Foreign currency contracts – net 193 193 — — 2 Note 5 Interest rate contracts – net 27 27 58 58 2 Note 5 Commodity contracts – net 7 7 37 37 2 Note 5 Liabilities Short-term borrowings 3,247 3,247 2,015 2,015 1 Long-term debt (including amounts due within one year) Machinery, Energy & Transportation 9,807 12,449 11,169 14,549 2 Financial Products 23,730 24,118 23,979 24,614 2 Foreign currency contracts – net — — 112 112 2 Note 5 Guarantees 5 5 5 5 3 Note 11 1 Includes time deposits of $543 million as of September 30, 2021. There were no time deposits as of December 31, 2020. See Note 8 for additional information. 2 Represents finance leases and failed sale leasebacks of $8,065 million and $7,961 million at September 30, 2021 and December 31, 2020, respectively.

Other income (expense) (Tables)

Other income (expense) (Tables)	9 Months Ended
	Sep. 30, 2021
Other Income and Expenses [Abstract]
Other income (expense)	Three Months Ended September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Investment and interest income $ 20 $ 21 $ 64 $ 91 Foreign exchange gains (losses) 1 47 (43) 110 (122) License fee income 31 27 88 75 Net periodic pension and OPEB income (cost), excluding service cost 111 — 2 333 270 2 Gains (losses) on securities 50 9 92 (12) Miscellaneous income (loss) (34) — 64 (37) Total $ 225 $ 14 $ 751 $ 265 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 5 for further details. 2 Includes a net remeasurement loss of $(77) million and a net remeasurement gain of $55 million for the three and nine months ended September 30, 2020, respectively, from the settlement of certain pension obligations. See Note 9 for further details.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	9 Months Ended
	Sep. 30, 2021
Restructuring Charges [Abstract]
Restructuring and related costs	Restructuring costs for the three and nine months ended September 30, 2021 and 2020 were as follows: (Millions of dollars) Three Months Ended September 30 Nine Months Ended September 30 2021 2020 2021 2020 Employee separations 1 $ 17 $ 98 $ 79 $ 232 Contract terminations 1 1 — 1 3 Long-lived asset impairments 1 8 2 12 25 Other 2 9 12 32 36 Total restructuring costs $ 35 $ 112 $ 124 $ 296 1 Recognized in Other operating (income) expenses. 2 Represents costs related to our restructuring programs, primarily for accelerated depreciation, inventory write-downs, equipment relocation and project management, all of which are primarily included in Cost of goods sold. Three Months Ended September 30 Nine Months Ended September 30 (Millions of dollars) 2021 2020 2021 2020 Construction Industries $ — $ 2 $ — $ 7 Resource Industries — 2 — 18 Energy & Transportation — 18 — 39 Financial Products Segment — 1 — 2
Summary of separation activity	The following table summarizes the 2021 and 2020 employee separation activity: (Millions of dollars) Nine Months Ended September 30 2021 2020 Liability balance, beginning of period $ 164 $ 48 Increase in liability (separation charges) 79 232 Reduction in liability (payments) (159) (131) Liability balance, end of period $ 84 $ 149

Sales and revenue contract in_2

Sales and revenue contract information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Trade receivables from dealers and end users	$ 6,476		$ 6,476		$ 6,310	$ 7,648
Long term trade receivables from dealers and end users	667		667		657	693
Contract liabilities	1,577		1,577		$ 1,526	$ 1,654
Revenue recognized from contract liability balance at beginning of period	121	$ 144	795	$ 843
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: 2021-10-01
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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stock-based compensation awards
Stock-based compensation expense, before tax (in dollars)	$ 58	$ 55	$ 169	$ 169
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)	$ 175		$ 175
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years)			1 year 10 months 24 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)	9 Months Ended
	Sep. 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	Sep. 30, 2021	Dec. 31, 2020
Derivatives Fair Value
Asset Fair Value	$ 332	$ 281
Liability Fair Value	(105)	(298)
Designated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	168	20
Undesignated Derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	59	(37)
Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	122	196
Liability Fair Value	(64)	(38)
Machinery, Energy & Transportation | Designated Derivatives | Foreign exchange contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	44	74
Machinery, Energy & Transportation | Designated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	33	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	(7)	(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	13	10
Machinery, Energy & Transportation | Undesignated Derivatives | Foreign exchange contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	1	0
Machinery, Energy & Transportation | Undesignated Derivatives | Foreign exchange contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	(10)	(1)
Machinery, Energy & Transportation | Undesignated Derivatives | Commodity contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	29	35
Machinery, Energy & Transportation | Undesignated Derivatives | Commodity contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	2	2
Machinery, Energy & Transportation | Undesignated Derivatives | Commodity contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	(23)	0
Machinery, Energy & Transportation | Undesignated Derivatives | Commodity contracts | Other Liabilities
Derivatives Fair Value
Liability Fair Value	(1)	0
Financial Products
Derivatives Fair Value
Asset Fair Value	210	85
Liability Fair Value	(41)	(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	115	1
Financial Products | Designated Derivatives | Foreign exchange contracts | Accrued Expenses
Derivatives Fair Value
Liability Fair Value	(21)	(148)
Financial Products | Designated Derivatives | Interest rate contracts | Receivables-trade and other
Derivatives Fair Value
Asset Fair Value	8	2
Financial Products | Designated Derivatives | Interest rate contracts | Long-term receivables-trade and other
Derivatives Fair Value
Asset Fair Value	27	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	54	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	$ (12)	$ (107)

Derivative Financial instrume_6

Derivative Financial instruments and Risk Management- Notional amounts (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Machinery, Energy & Transportation
Derivative
Derivative instruments notional amount	$ 4,742	$ 3,553
Financial Products
Derivative
Derivative instruments notional amount	$ 11,069	$ 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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	$ 45	$ 5	$ 141	$ (93)
Amount of gain (losses) reclassified from AOCI	(85)	93	(164)	98
Sales and revenues	12,397	9,881	37,173	30,513
Cost of goods sold	8,617	6,919	25,510	21,298
Other income (expense)	225	14	751	265
Designated Derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	45	5	141	(93)
Amount of gain (losses) reclassified from AOCI	85	(93)	164	(98)
Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Sales and revenues	11,707	9,228	35,091	28,452
Machinery, Energy & Transportation | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	(47)	66	(40)	(58)
Machinery, Energy & Transportation | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Sales
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	2	(6)	(21)	10
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	4	(15)	42	(58)
Machinery, Energy & Transportation | Designated Derivatives | Cash Flow Hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI		2	7	(14)
Financial Products
Derivative Instruments, Gain (Loss)
Sales and revenues	690	653	2,082	2,061
Financial Products | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	89	(64)	170	2
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	87	(63)	167	(35)
Financial Products | Designated Derivatives | Cash Flow Hedges | Foreign exchange contracts | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(3)	8	(1)	28
Financial Products | Designated Derivatives | Cash Flow Hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amount of gains (losses) recognized in AOCI	3	1	4	(23)
Financial Products | Designated Derivatives | Cash Flow Hedges | Interest rate contracts | Interest Expense
Derivative Instruments, Gain (Loss)
Amount of gain (losses) reclassified from AOCI	(5)	(16)	(21)	(40)
All other excluding Financial Products
Derivative Instruments, Gain (Loss)
Interest expense excluding Financial Products	$ 114	136	376	384
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)	$ (2)	$ (3)

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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 16	$ (59)	$ 112	$ 8
Other Nonoperating Income (Expense) | Financial Products | Foreign exchange contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	44	(73)	72	12
Other Nonoperating Income (Expense) | Machinery, Energy & Transportation | Foreign exchange contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	2	8	5	21
Other Nonoperating Income (Expense) | Machinery, Energy & Transportation | Commodity contracts
Derivative
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ (30)	$ 6	$ 35	$ (25)

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	Sep. 30, 2021	Dec. 31, 2020
Offsetting Assets
Gross Amount of Recognized Assets	$ 332	$ 281
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	332	281
Financial Instruments	(92)	(95)
Cash Collateral Received	0	0
Net Amount of Assets	240	186
Machinery, Energy & Transportation
Offsetting Assets
Gross Amount of Recognized Assets	122	196
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	122	196
Financial Instruments	(53)	(38)
Cash Collateral Received	0	0
Net Amount of Assets	69	158
Financial Products
Offsetting Assets
Gross Amount of Recognized Assets	210	85
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	210	85
Financial Instruments	(39)	(57)
Cash Collateral Received	0	0
Net Amount of Assets	$ 171	$ 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	Sep. 30, 2021	Dec. 31, 2020
Offsetting Liabilities
Gross Amount of Recognized Liabilities	$ (105)	$ (298)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(105)	(298)
Financial Instruments	92	95
Cash collateral pledged	0	0
Net Amount of Liabilities	(13)	(203)
Machinery, Energy & Transportation
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(64)	(38)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(64)	(38)
Financial Instruments	53	38
Cash collateral pledged	0	0
Net Amount of Liabilities	(11)	0
Financial Products
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(41)	(260)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(41)	(260)
Financial Instruments	39	57
Cash collateral pledged	0	0
Net Amount of Liabilities	$ (2)	$ (203)

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 5,144	$ 4,021
Work-in-process	1,522	1,052
Finished goods	6,707	6,054
Supplies	293	275
Total inventories	$ 13,666	$ 11,402

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Intangible assets
Weighted Amortizable Life (in years)			14 years		14 years
Finite-Lived Intangible Assets, Gross	$ 4,066		$ 4,066		$ 4,096
Finite-Lived Intangible Assets, Accumulated Amortization	(2,945)		(2,945)		(2,788)
Net	1,121		1,121		$ 1,308
Amortization expense	75	$ 78	228	$ 236
Remaining Three Months of 2021	74		74
2022	287		287
2023	228		228
2024	170		170
2025	160		160
Thereafter	202		$ 202
Customer Relationships
Intangible assets
Weighted Amortizable Life (in years)			15 years		15 years
Finite-Lived Intangible Assets, Gross	2,436		$ 2,436		$ 2,493
Finite-Lived Intangible Assets, Accumulated Amortization	(1,682)		(1,682)		(1,600)
Net	754		$ 754		$ 893
Intellectual Property
Intangible assets
Weighted Amortizable Life (in years)			12 years		12 years
Finite-Lived Intangible Assets, Gross	1,473		$ 1,473		$ 1,439
Finite-Lived Intangible Assets, Accumulated Amortization	(1,160)		(1,160)		(1,073)
Net	313		$ 313		$ 366
Other
Intangible assets
Weighted Amortizable Life (in years)			15 years		14 years
Finite-Lived Intangible Assets, Gross	157		$ 157		$ 164
Finite-Lived Intangible Assets, Accumulated Amortization	(103)		(103)		(115)
Net	$ 54		$ 54		$ 49

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 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	77
Goodwill impairment charge	0	$ 0
Other adjustments	(118)
Goodwill, end of period	7,550
Impairments, end of period	(1,197)
Net goodwill, end of period	6,353
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
Goodwill Acquired	4
Other adjustments	(17)
Goodwill, end of period	307
Impairments, end of period	(22)
Net goodwill, end of period	285
Resource Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	4,253
Impairments, beginning of period	(1,175)
Net goodwill, beginning of period	3,078
Goodwill Acquired	22
Other adjustments	(62)
Goodwill, end of period	4,213
Impairments, end of period	(1,175)
Net goodwill, end of period	3,038
Energy & Transportation
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of period	2,959
Goodwill Acquired	51
Other adjustments	(35)
Goodwill, end of period	2,975
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	Sep. 30, 2021	Dec. 31, 2020
Schedule of Investments in Debt and Equity Securities
Cost basis	$ 1,658	$ 1,613
Unrealized pretax net gains (losses)	45	70
Fair Value	1,703	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)	0	1
Fair Value	57	59
Corporate bonds
Schedule of Investments in Debt and Equity Securities
Cost basis	1,004	962
Unrealized pretax net gains (losses)	31	50
Fair Value	1,035	1,012
Asset-backed securities
Schedule of Investments in Debt and Equity Securities
Cost basis	146	156
Unrealized pretax net gains (losses)	2	3
Fair Value	148	159
U.S. governmental agency mortgage-backed securities
Schedule of Investments in Debt and Equity Securities
Cost basis	340	362
Unrealized pretax net gains (losses)	9	12
Fair Value	349	374
Residential
Schedule of Investments in Debt and Equity Securities
Cost basis	4	5
Unrealized pretax net gains (losses)	0	0
Fair Value	4	5
Commercial
Schedule of Investments in Debt and Equity Securities
Cost basis	97	60
Unrealized pretax net gains (losses)	3	4
Fair Value	$ 100	$ 64

Investments in Debt and Equit_4

Investments in Debt and Equity Securities (Details 2) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Available-for-sale Securities, Continuous Unrealized Loss Position
Less than 12 months - Fair Value	$ 215	$ 13
Less than 12 months - Unrealized losses	2	0
12 months or more - Fair Value	6	4
12 months or more - Unrealized losses	0	0
Total - Fair Value	221	17
Total - Unrealized losses	2	0
Corporate bonds
Available-for-sale Securities, Continuous Unrealized Loss Position
Less than 12 months - Fair Value	215	13
Less than 12 months - Unrealized losses	2	0
12 months or more - Fair Value	6	4
12 months or more - Unrealized losses	0	0
Total - Fair Value	221	17
Total - Unrealized losses	$ 2	$ 0

Investments in Debt and Equit_5

Investments in Debt and Equity Securities (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Schedule of Investments in Debt and Equity Securities
Due in one year or less, Cost Basis	$ 154		$ 154
Due in one year or less, Fair Value	156		156
Due after one year through five years, Cost Basis	730		730
Due after one year through five years, Fair Value	753		753
Due after five through ten years, Cost Basis	271		271
Due after five years through ten years, Fair Value	278		278
Due after ten years, Cost Basis	62		62
Due after ten years, Fair Value	63		63
Debt Securities, Available-for-sale, Amortized Cost	1,658		1,658		$ 1,613
Available-for-sale securities, debt securities	1,703		1,703		1,683
Available-for-sale Securities, Proceeds, Gains and Losses
Proceeds from the sale of available-for-sale securities	97	$ 74	322	$ 197
Gross gains from the sale of available-for-sale securities	1	0	3	1
Gross losses from the sale of available-for-sale securities	0	0	0	1
Schedule of Held-to-maturity Securities
Time deposit					0
Debt Securities, Held-to-maturity, Unrealized Loss	0		0		0
Debt Securities, Held-to-maturity, Unrealized Gain	0		0		0
Unrealized gain (loss) on equity securities	46	$ 9	65	$ (1)
Bank Time Deposits
Schedule of Held-to-maturity Securities
Time deposit	543		543		0
U.S. governmental agency mortgage-backed securities
Schedule of Investments in Debt and Equity Securities
Debt Securities, Available-for-sale, Amortized Cost	340		340		362
Available-for-sale securities, debt securities	349		349		374
Residential
Schedule of Investments in Debt and Equity Securities
Debt Securities, Available-for-sale, Amortized Cost	4		4		5
Available-for-sale securities, debt securities	4		4		5
Commercial
Schedule of Investments in Debt and Equity Securities
Debt Securities, Available-for-sale, Amortized Cost	97		97		60
Available-for-sale securities, debt securities	$ 100		$ 100		$ 64

Postretirement Benefits (Detail

Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Components of net periodic benefit cost:
(Gain) loss on remeasurement of pension obligations		$ 77	$ 0	$ (55)
Pension and Other Postretirement Benefits
Pension and other postretirement benefit contributions
Contributions to pension and other postretirement benefit plans	$ 69		229
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	75	71
Interest cost	16	26	48	79
Expected return on plan assets	(1)	(4)	(4)	(10)
Amortization of prior service cost / (credit)	(11)	(9)	(31)	(28)
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)	29	37	88	112
UNITED STATES
Components of net periodic benefit cost:
Service cost	0	0	0	0
Interest cost	82	120	247	362
Expected return on plan assets	(180)	(197)	(538)	(593)
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	0
Net periodic benefit cost (benefit)	(98)	(79)	(291)	(231)
Foreign Plan
Components of net periodic benefit cost:
Service cost	15	13	44	41
Interest cost	16	17	43	57
Expected return on plan assets	(33)	(34)	(98)	(107)
Amortization of prior service cost / (credit)	0	0	0	0
Curtailments, settlements and termination benefits	0	4	0	25
(Gain) loss on remeasurement of pension obligations	0	79	0	(55)
Net periodic benefit cost (benefit)	$ (2)	$ 79	$ (11)	$ (39)

Postretirement Benefits (Deta_2

Postretirement Benefits (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Defined Contribution Plan
Costs related to defined contribution plans	$ 110	$ 125	$ 404	$ 313
U.S. Plans
Defined Contribution Plan
Costs related to defined contribution plans	81	103	321	248
Non-U.S. Plans
Defined Contribution Plan
Costs related to defined contribution plans	$ 29	$ 22	$ 83	$ 65

Leases Lease revenue (Details)

Leases Lease revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Finance lease revenue	$ 120	$ 125	$ 369	$ 369
Operating lease revenue	275	249	850	837
Total	$ 395	$ 374	$ 1,219	$ 1,206

Guarantees and Product Warran_3

Guarantees and Product Warranty (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Related liability	$ 5	$ 5
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,403	1,485
SPC assets in consolidated statement	80,784	78,324
SPC liabilities in consolidated statement	64,089	62,946
Caterpillar dealer performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	908	993
Supplier consortium performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	247	258
Other guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	248	234
Variable Interest Entity, Primary Beneficiary
Guarantor Obligations
SPC assets in consolidated statement	899	1,026
SPC liabilities in consolidated statement	$ 899	$ 1,025

Guarantees and Product Warran_4

Guarantees and Product Warranty (Details 2) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Movement in Standard Product Warranty Accrual
Warranty liability, beginning balance	$ 1,612	$ 1,541
Reduction in liability (payments)	(638)	(652)
Increase in liability (new warranties)	716	678
Warranty liability, ending balance	$ 1,690	$ 1,567

Profit Per Share (Details)

Profit Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020		Jul. 01, 2018
Earnings Per Share [Abstract]
Profit for the period (A) (in dollars)	$ 1,426	[1]	$ 668	[1]	$ 4,369	[2]	$ 2,218	[2]
Determination of shares (in millions)
Weighted-average number of common shares outstanding (B) (in shares)	544,000,000		542,300,000		545,800,000		543,900,000
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares)	3,600,000		4,100,000		4,400,000		3,900,000
Average common shares outstanding for fully diluted computation (C) (in shares)	547,600,000	[3]	546,400,000	[3]	550,200,000	[4]	547,800,000	[4]
Profit (loss) per share of common stock:
Assuming no dilution (A/B) (in dollars per share)	$ 2.62		$ 1.23		$ 8		$ 4.08
Assuming full dilution (A/C) (in dollars per share)	$ 2.60	[3]	$ 1.22	[3]	$ 7.94	[4]	$ 4.05	[4]
Shares outstanding as of September 30 (in millions)	540,900,000		543,300,000		540,900,000		543,300,000
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)	1,100,000		4,800,000		1,100,000		4,800,000
Stock repurchase
Stock repurchase program, authorized amount									$ 10,000
Stock repurchase program, remaining authorized repurchase amount	$ 3,100				$ 3,100
Common shares repurchased (in shares)	6,610,438		0		7,772,393		10,096,006
Cost of repurchase	$ 1,371	[5]			$ 1,622	[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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment	$ (1,400)	$ (1,381)	$ (1,400)	$ (1,381)
Gains (losses) on foreign currency translation	(230)	270	(461)	64
Less: Tax provision /(benefit)	12	(21)	29	(20)
Net gains (losses) on foreign currency translation	(242)	291	(490)	84
(Gains) losses reclassified to earnings	0	0	0	22
Less: Tax provision /(benefit)	0	0	0	0
Net (gains) losses reclassified to earnings	0	0	0	22
Other comprehensive income (loss), net of tax	(242)	291	(490)	106
Accumulated Other Comprehensive (Income) Loss, Pension and other postretirement benefits	(55)	(23)	(55)	(23)
Current year prior service credit (cost)	0	(2)	0	0
Pension and other postretirement benefits, Current year prior service credit (cost), tax (provision)/benefit	0	(1)	0	(1)
Net current year prior service credit (cost)	0	(1)	0	1
Amortization of prior service credit (cost)	(11)	(9)	(31)	(28)
Less: Tax provision /(benefit)	(3)	(2)	(8)	(7)
Net amortization of prior service (credit) cost	(8)	(7)	(23)	(21)
Pension and other post retirement benefits	(8)	(8)	(23)	(20)
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax	(19)	(93)	(19)	(93)
Amount of gains (losses) recognized in AOCI	45	5	141	(93)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax	3	2	22	(21)
Gains (losses) deferred, net of tax	42	3	119	(72)
Amount of gain (losses) reclassified from AOCI	(85)	93	(164)	98
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	(12)	20	(26)	22
Net (gains) losses reclassified to earnings	(73)	73	(138)	76
Other comprehensive income (loss), net of tax	(31)	76	(19)	4
AOCI, Debt Securities, Available-for-sale securities	34	49	34	49
Gains (losses) deferred	(4)	8	(22)	38
Less: Tax provision /(benefit)	0	0	(4)	9
Net gains (losses) deferred	(4)	8	(18)	29
(Gains) losses reclassified to earnings	(1)	0	(3)	0
Available-for-sale securities, (Gains) losses reclassified to earnings, tax (provision)/benefit	0	0	(1)	0
Net (gains) losses reclassified to earnings	(1)	0	(2)	0
Other comprehensive income (loss), net of tax	(5)	8	(20)	29
Accumulated other comprehensive income (loss)	$ (1,440)	$ (1,448)	$ (1,440)	$ (1,448)		$ (888)
Adjusted beginning balance
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment					$ (1,158)	(910)	$ (1,672)	$ (1,487)
Accumulated Other Comprehensive (Income) Loss, Pension and other postretirement benefits					(47)	(32)	(15)	(3)
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax					12	0	(169)	(97)
AOCI, Debt Securities, Available-for-sale securities					$ 39	$ 54	$ 41	$ 20

Environmental and legal matte_2

Environmental and legal matters Environmental and legal matters (Details)	Mar. 03, 2017
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		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Estimated annual effective tax rate (as a percent)			25.00%	31.00%	28.00%
Income Tax Disclosure
Tax benefit for settlement of stock-based compensation awards			$ 61	$ 21
Prior year tax adjustment expense (benefit)			(36)	(80)
Income tax (expense) benefit reported discretely in the period and excluded from the estimated annual effective tax rate				(10)
Gain (loss) on remeasurement of pension obligations		$ (77)	0	55
Foreign Plan
Income Tax Disclosure
Gain (loss) on remeasurement of pension obligations	$ 0	$ (79)	0	$ 55
Tax Year Prior Years
Income Tax Contingency
Income tax examination, proposed liability increase/(decrease)	$ 2,300		$ 2,300

Segment Information (Details)

Segment Information (Details)	9 Months Ended
	Sep. 30, 2021group_presidentssegments
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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Sales and revenues by geographic region
Sales and revenues	$ 12,397	$ 9,881	$ 37,173	$ 30,513
Reportable Segments
Sales and revenues by geographic region
Sales and revenues	13,500	10,757	40,427	33,096
Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	12,455	9,951	37,380	30,720
Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	1,045	806	3,047	2,376
Corporate Items and Eliminations
Sales and revenues by geographic region
Sales and revenues	(1,222)	(982)	(3,631)	(2,913)
Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(93)	(95)	(314)	(288)
Corporate Items and Eliminations | Intersegment Eliminations
Sales and revenues by geographic region
Sales and revenues	(1,129)	(887)	(3,317)	(2,625)
North America
Sales and revenues by geographic region
Sales and revenues	5,455	4,251	16,165	13,617
North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	5,493	4,300	16,311	13,764
North America | Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(56)	(59)	(188)	(169)
Latin America
Sales and revenues by geographic region
Sales and revenues	1,329	772	3,654	2,394
Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,342	783	3,689	2,426
Latin America | Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(13)	(12)	(36)	(36)
EAME
Sales and revenues by geographic region
Sales and revenues	2,939	2,384	8,784	7,154
EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	2,945	2,393	8,801	7,169
EAME | Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(9)	(10)	(27)	(32)
Asia/Pacific
Sales and revenues by geographic region
Sales and revenues	2,674	2,474	8,570	7,348
Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	2,675	2,475	8,579	7,361
Asia/Pacific | Corporate Items and Eliminations | Corporate, Non-Segment
Sales and revenues by geographic region
Sales and revenues	(15)	(14)	(63)	(51)
Construction Industries | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	5,255	4,056	16,370	12,410
Construction Industries | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	5,261	4,048	16,305	12,392
Construction Industries | Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	(6)	8	65	18
Construction Industries | North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	2,417	1,781	7,041	5,470
Construction Industries | Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	528	230	1,350	707
Construction Industries | EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,240	796	3,612	2,618
Construction Industries | Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,076	1,241	4,302	3,597
Resource Industries | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	2,406	1,816	7,201	5,726
Resource Industries | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	2,291	1,704	6,859	5,393
Resource Industries | Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	115	112	342	333
Resource Industries | North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	674	487	2,130	1,690
Resource Industries | Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	417	269	1,309	859
Resource Industries | EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	456	384	1,455	1,158
Resource Industries | Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	744	564	1,965	1,686
Energy & Transportation
Sales and revenues by geographic region
Sales and revenues	4,141	3,475	11,919	10,634
Energy & Transportation | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	5,077	4,161	14,559	12,659
Energy & Transportation | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	4,141	3,475	11,919	10,634
Energy & Transportation | Reportable Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	936	686	2,640	2,025
Energy & Transportation | North America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,924	1,584	5,698	5,138
Energy & Transportation | Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	329	221	835	667
Energy & Transportation | EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	1,144	1,113	3,433	3,095
Energy & Transportation | Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	744	557	1,953	1,734
Financial Products Segment
Sales and revenues by geographic region
Revenue from Related Parties	87	81	263	274
Financial Products Segment | Reportable Segments
Sales and revenues by geographic region
Sales and revenues	762	724	2,297	2,301
Financial Products Segment | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	762	724	2,297	2,301
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	478	448	1,442	1,466
Financial Products Segment | Latin America | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	68	63	195	193
Financial Products Segment | EAME | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	105	100	301	298
Financial Products Segment | Asia/Pacific | Reportable Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	111	113	359	344
All Other Operating Segments
Sales and revenues by geographic region
Sales and revenues	119	106	377	330
All Other Operating Segments | Operating Segments
Sales and revenues by geographic region
Sales and revenues	35	25	107	81
All Other Operating Segments | Segment Reconciling Items
Sales and revenues by geographic region
Sales and revenues	84	81	270	249
All Other Operating Segments | North America | Operating Segments
Sales and revenues by geographic region
Sales and revenues	18	10	42	22
All Other Operating Segments | Latin America | Operating Segments
Sales and revenues by geographic region
Sales and revenues	0	1	1	4
All Other Operating Segments | EAME | Operating Segments
Sales and revenues by geographic region
Sales and revenues	3	1	10	17
All Other Operating Segments | Asia/Pacific | Operating Segments
Sales and revenues by geographic region
Sales and revenues	$ 14	$ 13	$ 54	$ 38

Energy & Transportation sales (

Energy & Transportation sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Energy and transportation sales
Sales and revenues	$ 12,397	$ 9,881	$ 37,173	$ 30,513
Energy & Transportation
Energy and transportation sales
Sales and revenues	4,141	3,475	11,919	10,634
Energy & Transportation | Oil And Gas Customer
Energy and transportation sales
Sales and revenues	1,088	734	3,140	2,622
Energy & Transportation | Power generation
Energy and transportation sales
Sales and revenues	1,010	1,034	3,025	2,783
Energy & Transportation | Industrial
Energy and transportation sales
Sales and revenues	948	730	2,660	2,209
Energy & Transportation | Transportation
Energy and transportation sales
Sales and revenues	$ 1,095	$ 977	$ 3,094	$ 3,020

Reconciliations of consolidated

Reconciliations of consolidated profit before taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	$ 1,775	$ 863	$ 5,642	$ 3,054
Operating Segments | Reportable Segments
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	2,025	1,386	6,657	4,479
Operating Segments | Reportable Segments | Construction Industries
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	859	585	2,918	1,743
Operating Segments | Reportable Segments | Resource Industries
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	297	167	986	623
Operating Segments | Reportable Segments | Energy & Transportation
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	696	492	2,093	1,718
Operating Segments | Reportable Segments | Financial Products Segment
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	173	142	660	395
Operating Segments | All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	5	27	(2)	31
Intersegment Eliminations | Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	19	9	51	18
Intersegment Eliminations | Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(189)	(122)	(576)	(409)
Intersegment Eliminations | Timing
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(40)	(39)	(230)	(90)
Intersegment Eliminations | Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(35)	(87)	(124)	(211)
Intersegment Eliminations | Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	73	(7)	80	(25)
Intersegment Eliminations | Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	116	(32)	270	253
Intersegment Eliminations | Stock-Based Compensation Expense
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(58)	(55)	(169)	(169)
Intersegment Eliminations | Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(103)	(125)	(342)	(324)
Intersegment Eliminations | Currency
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	19	(22)	255	(230)
Intersegment Eliminations | Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	(80)	(72)	(201)	(244)
Intersegment Eliminations | Other
Reconciliation of Consolidated profit (loss) before taxes
Reclassifications before tax	$ 23	$ 2	$ (27)	$ (25)

Reconciliation of assets (Detai

Reconciliation of assets (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Reconciliation of Assets
Assets	$ 80,784	$ 78,324
Intersegment Eliminations
Reconciliation of Assets
Inventory Methodology Difference	(2,648)	(2,536)
Intersegment Eliminations | Cash and Short Term Investments
Reconciliation of Assets
Assets	8,554	8,822
Intersegment Eliminations | Deferred Income Taxes
Reconciliation of Assets
Assets	1,639	1,413
Intersegment Eliminations | Goodwill and Intangible Assets
Reconciliation of Assets
Assets	4,894	4,847
Intersegment Eliminations | Property Plant and Equipment-Net and Other Assets
Reconciliation of Assets
Assets	3,208	2,833
Intersegment Eliminations | Liabilities Included in Segment Assets
Reconciliation of Assets
Assets	9,810	8,466
Intersegment Eliminations | Other
Reconciliation of Assets
Assets	(359)	(392)
Operating Segments | Reportable Segments
Reconciliation of Assets
Assets	54,064	53,154
Operating Segments | Reportable Segments | Construction Industries
Reconciliation of Assets
Assets	4,592	4,259
Operating Segments | Reportable Segments | Resource Industries
Reconciliation of Assets
Assets	5,985	6,035
Operating Segments | Reportable Segments | Energy & Transportation
Reconciliation of Assets
Assets	9,305	8,582
Operating Segments | Reportable Segments | Financial Products Segment
Reconciliation of Assets
Assets	34,182	34,278
Operating Segments | All Other operating segments
Reconciliation of Assets
Assets	$ 1,622	$ 1,717

Reconciliations of depreciation

Reconciliations of depreciation and amortization (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of Depreciation and amortization
Depreciation and amortization	$ 593	$ 593	$ 1,766	$ 1,815
Operating Segments | Reportable Segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	500	487	1,489	1,514
Operating Segments | Reportable Segments | Construction Industries
Reconciliation of Depreciation and amortization
Depreciation and amortization	60	61	178	183
Operating Segments | Reportable Segments | Resource Industries
Reconciliation of Depreciation and amortization
Depreciation and amortization	101	105	301	312
Operating Segments | Reportable Segments | Energy & Transportation
Reconciliation of Depreciation and amortization
Depreciation and amortization	144	147	428	442
Operating Segments | Reportable Segments | Financial Products Segment
Reconciliation of Depreciation and amortization
Depreciation and amortization	195	174	582	577
Intersegment Eliminations | All Other operating segments
Reconciliation of Depreciation and amortization
Depreciation and amortization	59	71	181	196
Intersegment Eliminations | Cost Centers
Reconciliation of Depreciation and amortization
Depreciation and amortization	24	31	74	96
Intersegment Eliminations | Other
Reconciliation of Depreciation and amortization
Depreciation and amortization	$ 10	$ 4	$ 22	$ 9

Reconciliations of capital expe

Reconciliations of capital expenditures (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	$ 587	$ 493	$ 1,687	$ 1,491
Operating Segments | Reportable Segments
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	526	427	1,460	1,262
Operating Segments | Reportable Segments | Construction Industries
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	56	37	120	85
Operating Segments | Reportable Segments | Resource Industries
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	44	10	101	63
Operating Segments | Reportable Segments | Energy & Transportation
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	115	100	339	331
Operating Segments | Reportable Segments | Financial Products Segment
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	311	280	900	783
Intersegment Eliminations | All Other operating segments
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	59	46	106	84
Intersegment Eliminations | Cost Centers
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	15	8	34	23
Intersegment Eliminations | Timing
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	(13)	1	96	147
Intersegment Eliminations | Other
Reconciliation of Capital expenditures
Segment Reporting Information, Expenditure for Additions Long-Lived Assets	$ 0	$ 11	$ (9)	$ (25)

Cat Financial Financing Activ_3

Cat Financial Financing Activities (Details-Allowance for credit losses) - Finance Receivables - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Allowance for Credit Loss Activity
Beginning balance	$ 398	$ 512	$ 475	$ 420
Write-offs	(91)	(139)	(193)	(212)
Recoveries	15	14	39	27
Provision for credit losses	55	67	58	213
Other	(3)	3	(5)	(3)
Ending balance	374	457	374	457
Allowance for Credit Losses
Individually evaluated	196	211	196	211
Collectively evaluated	178	246	178	246
Ending Balance	374	457	374	457	$ 475
Finance Receivables
Individually evaluated	452	690	452	690
Collectively evaluated	21,446	20,942	21,446	20,942
Total Finance Receivables	21,898	21,632	21,898	21,632
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	354	467	431	375
Write-offs	(91)	(139)	(193)	(212)
Recoveries	15	14	39	27
Provision for credit losses	17	67	20	213
Other	(3)	3	(5)	(3)
Ending balance	292	412	292	412
Allowance for Credit Losses
Individually evaluated	118	172	118	172
Collectively evaluated	174	240	174	240
Ending Balance	292	412	292	412	431
Finance Receivables
Individually evaluated	374	612	374	612
Collectively evaluated	19,593	17,967	19,593	17,967
Total Finance Receivables	19,967	18,579	19,967	18,579	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	38	0	38	0
Other	0	0	0	0
Ending balance	82	45	82	45
Allowance for Credit Losses
Individually evaluated	78	39	78	39
Collectively evaluated	4	6	4	6
Ending Balance	82	45	82	45	44
Finance Receivables
Individually evaluated	78	78	78	78
Collectively evaluated	1,853	2,975	1,853	2,975
Total Finance Receivables	$ 1,931	$ 3,053	1,931	3,053
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	Sep. 30, 2021	Dec. 31, 2020	Sep. 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	21,898		$ 21,632
Finance Receivables | Customer
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	7,332	8,162
2020 and 2019, respectively	6,018	5,403
2019 and 2018, respectively	3,474	2,901
2018 and 2017, respectively	1,629	1,357
2017 and 2016, respectively	678	575
Prior	489	492
Revolving Finance Receivables	347	348
Total Finance Receivables	19,967	19,238	18,579
Finance Receivables | Customer | North America | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	3,635	3,777
2020 and 2019, respectively	2,914	2,423
2019 and 2018, respectively	1,675	1,344
2018 and 2017, respectively	785	522
2017 and 2016, respectively	246	212
Prior	66	27
Revolving Finance Receivables	167	89
Total Finance Receivables	9,488	8,394
Finance Receivables | Customer | North America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	13	52
2020 and 2019, respectively	31	49
2019 and 2018, respectively	23	33
2018 and 2017, respectively	15	16
2017 and 2016, respectively	6	7
Prior	1	2
Revolving Finance Receivables	3	0
Total Finance Receivables	92	159
Finance Receivables | Customer | North America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	6	22
2020 and 2019, respectively	9	25
2019 and 2018, respectively	8	16
2018 and 2017, respectively	5	9
2017 and 2016, respectively	2	2
Prior	0	1
Revolving Finance Receivables	3	0
Total Finance Receivables	33	75
Finance Receivables | Customer | North America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	5	14
2020 and 2019, respectively	17	35
2019 and 2018, respectively	22	31
2018 and 2017, respectively	12	20
2017 and 2016, respectively	8	9
Prior	5	4
Revolving Finance Receivables	6	2
Total Finance Receivables	75	115
Finance Receivables | Customer | EAME | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	1,330	1,605
2020 and 2019, respectively	1,117	931
2019 and 2018, respectively	571	501
2018 and 2017, respectively	269	203
2017 and 2016, respectively	93	60
Prior	25	18
Revolving Finance Receivables	0	0
Total Finance Receivables	3,405	3,318
Finance Receivables | Customer | EAME | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	8	5
2020 and 2019, respectively	7	15
2019 and 2018, respectively	5	3
2018 and 2017, respectively	1	2
2017 and 2016, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	22	25
Finance Receivables | Customer | EAME | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	3	1
2020 and 2019, respectively	4	1
2019 and 2018, respectively	9	2
2018 and 2017, respectively	2	1
2017 and 2016, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	18	5
Finance Receivables | Customer | EAME | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	2	7
2020 and 2019, respectively	15	7
2019 and 2018, respectively	7	12
2018 and 2017, respectively	5	4
2017 and 2016, respectively	1	39
Prior	24	43
Revolving Finance Receivables	0	0
Total Finance Receivables	54	112
Finance Receivables | Customer | Asia/Pacific | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	1,071	1,375
2020 and 2019, respectively	929	745
2019 and 2018, respectively	390	321
2018 and 2017, respectively	102	61
2017 and 2016, respectively	22	10
Prior	4	3
Revolving Finance Receivables	0	0
Total Finance Receivables	2,518	2,515
Finance Receivables | Customer | Asia/Pacific | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	9	12
2020 and 2019, respectively	17	22
2019 and 2018, respectively	14	13
2018 and 2017, respectively	5	6
2017 and 2016, respectively	2	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	47	53
Finance Receivables | Customer | Asia/Pacific | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	3	7
2020 and 2019, respectively	10	11
2019 and 2018, respectively	7	7
2018 and 2017, respectively	1	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	1	4
2020 and 2019, respectively	11	10
2019 and 2018, respectively	11	9
2018 and 2017, respectively	6	3
2017 and 2016, respectively	0	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	656	490
2020 and 2019, respectively	382	571
2019 and 2018, respectively	417	287
2018 and 2017, respectively	230	152
2017 and 2016, respectively	67	92
Prior	164	151
Revolving Finance Receivables	66	137
Total Finance Receivables	1,982	1,880
Finance Receivables | Customer | Mining | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	2	5
2020 and 2019, respectively	0	0
2019 and 2018, respectively	8	5
2018 and 2017, respectively	9	1
2017 and 2016, respectively	3	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	22	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	2	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	2	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	472	561
2020 and 2019, respectively	377	348
2019 and 2018, respectively	192	151
2018 and 2017, respectively	71	48
2017 and 2016, respectively	19	13
Prior	10	34
Revolving Finance Receivables	0	0
Total Finance Receivables	1,141	1,155
Finance Receivables | Customer | Latin America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	4	3
2020 and 2019, respectively	11	6
2019 and 2018, respectively	4	4
2018 and 2017, respectively	3	3
2017 and 2016, respectively	2	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	24	16
Finance Receivables | Customer | Latin America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	2	1
2020 and 2019, respectively	3	7
2019 and 2018, respectively	3	6
2018 and 2017, respectively	2	3
2017 and 2016, respectively	1	2
Prior	1	0
Revolving Finance Receivables	0	0
Total Finance Receivables	12	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	8	11
2018 and 2017, respectively	5	24
2017 and 2016, respectively	5	5
Prior	4	4
Revolving Finance Receivables	0	0
Total Finance Receivables	40	60
Finance Receivables | Customer | Caterpillar Power Finance | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	109	217
2020 and 2019, respectively	141	172
2019 and 2018, respectively	98	111
2018 and 2017, respectively	75	273
2017 and 2016, respectively	197	99
Prior	141	117
Revolving Finance Receivables	102	119
Total Finance Receivables	863	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	2	0
2017 and 2016, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	2	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	0	9
Revolving Finance Receivables	0	0
Total Finance Receivables	0	9
Finance Receivables | Customer | Caterpillar Power Finance | 91+ days past due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively	1	2
2020 and 2019, respectively	2	0
2019 and 2018, respectively	0	20
2018 and 2017, respectively	20	3
2017 and 2016, respectively	1	25
Prior	44	79
Revolving Finance Receivables	0	0
Total Finance Receivables	68	$ 129
Finance Receivables | Dealer
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	$ 1,931		$ 3,053

Cat Financial Financing Activ_5

Cat Financial Financing Activities (Details Non-accrual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 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	$ 2	9	$ 8
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	251		251		466
Amortized Cost, Non-accrual Without an Allowance	9		9		20
Financing Receivable, 91 days past due and still accruing	31		31		49
Finance Receivables | North America | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	54		54		86
Amortized Cost, Non-accrual Without an Allowance	7		7		1
Financing Receivable, 91 days past due and still accruing	17		17		34
Finance Receivables | EAME | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	50		50		113
Amortized Cost, Non-accrual Without an Allowance	1		1		1
Financing Receivable, 91 days past due and still accruing	4		4		1
Finance Receivables | Asia/Pacific | Customer
Financing Receivable, Nonaccrual
Amortized Cost, Non-accrual With an Allowance	21		21		13
Amortized Cost, Non-accrual Without an Allowance	0		0		0
Financing Receivable, 91 days past due and still accruing	9		9		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	42		42		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	75		75		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		9 Months Ended
	Sep. 30, 2021USD ($)Contracts	Sep. 30, 2020USD ($)Contracts	Sep. 30, 2021USD ($)Contracts	Sep. 30, 2020USD ($)Contracts
Customer
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	$ 17	$ 76	$ 54	$ 149
Post-TDR Amortized Cost	13	76	44	149
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0	25	27	36
Customer | North America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	1	1	5	10
Post-TDR Amortized Cost	1	1	5	10
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0	6	1	6
Customer | EMEA
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	1	0	1	0
Post-TDR Amortized Cost	1	0	1	0
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	4	4	4	12
Post-TDR Amortized Cost	4	4	4	12
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0	0	6	0
Customer | Mining
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	0	5	11	22
Post-TDR Amortized Cost	0	5	5	22
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0	1	0	1
Customer | Latin America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	4	16	10	18
Post-TDR Amortized Cost	4	16	10	18
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0	0	15	1
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	7	50	23	87
Post-TDR Amortized Cost	3	50	19	87
TDRs which had been modified within twelve months of the default date
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 0	$ 18	$ 5	$ 18
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	Sep. 30, 2021	Dec. 31, 2020
Assets
Available-for-sale securities, debt securities	$ 1,703	$ 1,683
Recurring basis
Assets
Available-for-sale securities, debt securities	1,703	1,683
Equity Securities, FV-NI	440	405
Derivative Assets (Liabilities), at Fair Value, Net	227	(17)
Total Assets	2,370	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	57	59
Other U.S. and non-U.S. government bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	57	59
Corporate bonds
Assets
Available-for-sale securities, debt securities	1,035	1,012
Corporate bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	1,035	1,012
Asset-backed securities
Assets
Available-for-sale securities, debt securities	148	159
Asset-backed securities | Recurring basis
Assets
Available-for-sale securities, debt securities	148	159
U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities, debt securities	349	374
Residential
Assets
Available-for-sale securities, debt securities	4	5
Residential | Recurring basis
Assets
Available-for-sale securities, debt securities	4	5
Commercial
Assets
Available-for-sale securities, debt securities	100	64
Commercial | Recurring basis
Assets
Available-for-sale securities, debt securities	100	64
Large capitalization value | Recurring basis
Assets
Equity Securities, FV-NI	196	199
Smaller company growth | Recurring basis
Assets
Equity Securities, FV-NI	86	58
REIT | Recurring basis
Assets
Equity Securities, FV-NI	158	148
Level 1 | Recurring basis
Assets
Available-for-sale securities, debt securities	10	10
Equity Securities, FV-NI	282	257
Total Assets	292	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	196	199
Level 1 | Smaller company growth | Recurring basis
Assets
Equity Securities, FV-NI	86	58
Level 2 | Recurring basis
Assets
Available-for-sale securities, debt securities	1,693	1,673
Derivative Assets (Liabilities), at Fair Value, Net	227	(17)
Total Assets	1,920	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	57	59
Level 2 | Corporate bonds | Recurring basis
Assets
Available-for-sale securities, debt securities	1,035	1,012
Level 2 | Asset-backed securities | Recurring basis
Assets
Available-for-sale securities, debt securities	148	159
Level 2 | U.S. governmental agency | Recurring basis
Assets
Available-for-sale securities, debt securities	349	374
Level 2 | Residential | Recurring basis
Assets
Available-for-sale securities, debt securities	4	5
Level 2 | Commercial | Recurring basis
Assets
Available-for-sale securities, debt securities	100	64
Fair Value Measured on Net Asset Value (NAV) | Recurring basis
Assets
Equity Securities, FV-NI	158	148
Total Assets	158	148
Fair Value Measured on Net Asset Value (NAV) | REIT | Recurring basis
Assets
Equity Securities, FV-NI	158	148
Financial Products | Level 3 | Nonrecurring basis
Assets and liabilities measured on a recurring basis at fair value
Loans carried at fair value	$ 150	$ 243

Fair Value Disclosures (Detai_2

Fair Value Disclosures (Details 2) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Assets
Time deposit		$ 0
Bank Time Deposits
Assets
Time deposit	$ 543	0
Machinery, Energy & Transportation
Liabilities
Short-term borrowings	0	10
Financial Products
Liabilities
Short-term borrowings	3,247	2,005
Carrying Amount
Assets
Cash and Cash Equivalents, Fair Value Disclosure	9,446	9,352
Restricted cash and short-term investments	546	14
Investments in AFS debt and equity securities	2,143	2,088
Finance receivables-net (excluding finance leases)	13,785	14,028
Wholesale inventory receivables-net (excluding finance leases)	819	929
Foreign currency contracts-net	193	0
Interest rate contracts asset-net	27	58
Commodity contracts-net	7	37
Liabilities
Short-term borrowings	3,247	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)	9,807	11,169
Carrying Amount | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	23,730	23,979
Carrying amount of assets excluded from measurement at fair value
Assets
Excluded items: Finance leases and failed sale leasebacks, Carrying Value	8,065	7,961
Level 1 | Fair Value
Assets
Cash and Cash Equivalents, Fair Value Disclosure	9,446	9,352
Liabilities
Short-term borrowings	3,247	2,015
Level 2 | Fair Value
Assets
Foreign currency contracts-net	193	0
Interest rate contracts asset-net	27	58
Commodity contracts-net	7	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)	12,449	14,549
Level 2 | Fair Value | Financial Products
Liabilities
Long-term debt (including amounts due within one year)	24,118	24,614
Level 3 | Fair Value
Assets
Finance receivables-net (excluding finance leases)	13,921	14,357
Wholesale inventory receivables-net (excluding finance leases)	800	911
Liabilities
Guarantees	5	5
Level1 and 2 | Fair Value
Assets
Restricted cash and short-term investments	546	14
Investments in AFS debt and equity securities	$ 2,143	$ 2,088

Other income (expense) (Details

Other income (expense) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Income and Expenses [Abstract]
Investment and interest income	$ 20	$ 21	$ 64	$ 91
Foreign exchange gains (losses)	47	(43)	110	(122)
License fee income	31	27	88	75
Net periodic pension and OPEB income (cost), excluding service cost	111	0	333	270
Gains (losses) on securities	50	9	92	(12)
Miscellaneous income (loss)	(34)	0	64	(37)
Total	225	14	751	265
Other income (expense) [Line Items]
Gain (loss) on remeasurement of pension obligations		(77)	0	55
Foreign Plan
Other income (expense) [Line Items]
Gain (loss) on remeasurement of pension obligations	$ 0	$ (79)	$ 0	$ 55

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Restructuring and Related Cost
Restructuring costs	$ 35	$ 112	$ 124	$ 296
Employee Separation Charges [Roll Forward]
Restructuring Reserve, Beginning Balance			164	48
Restructuring Reserve, Ending Balance	84	149	84	149
Increase in liability (separation charges)			79	232
Payments for Restructuring			(159)	(131)
Construction Industries [Member]
Restructuring and Related Cost
Restructuring costs	0	2	0	7
Resource Industries
Restructuring and Related Cost
Restructuring costs	0	2	0	18
Energy & Transportation
Restructuring and Related Cost
Restructuring costs	0	18	0	39
Financial Products Segment
Restructuring and Related Cost
Restructuring costs	0	1	0	2
Employee separations | Other Operating Income (Expense)
Restructuring and Related Cost
Restructuring costs	17	98	79	232
Contract terminations | Other Operating Income (Expense)
Restructuring and Related Cost
Restructuring costs	1	0	1	3
Long-lived asset impairments | Other Operating Income (Expense)
Restructuring and Related Cost
Restructuring costs	8	2	12	25
Other | Cost of Sales
Restructuring and Related Cost
Restructuring costs	$ 9	$ 12	$ 32	$ 36

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Millions	Feb. 01, 2021	Sep. 30, 2021	Sep. 30, 2020
Acquisitions
Net cash paid for acquisition		$ 449	$ 93
SPM Oil & Gas
Acquisitions
Net cash paid for acquisition	$ 361
Assets acquired
Tangible assets acquired	515
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	32
Liabilities assumed
Business Combination, Accounts Payable	33
Total liabilities assumed	187
Business Combination, Lease Obligation	$ 105