Caterpillar Financial Services 10-Q 2 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2016	Nov. 02, 2016
Entity Information
Entity Registrant Name	CATERPILLAR FINANCIAL SERVICES CORPORATION
Entity Central Index Key	764,764
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Retail finance		$ 307	$ 307	$ 914	$ 940
Operating lease		257	246	756	758
Wholesale finance		62	69	202	217
Other, net		25	31	81	110
Total revenues		651	653	1,953	2,025
Expenses:
Interest		151	144	458	445
Depreciation on equipment leased to others		213	207	627	629
General, operating and administrative		97	104	292	315
Provision for credit losses		29	22	96	89
Other		12	12	31	32
Total expenses		502	489	1,504	1,510
Other income (expense)		(3)	(11)	(10)	(25)
Profit before income taxes		146	153	439	490
Provision for income taxes		48	44	136	142
Profit of consolidated companies		98	109	303	348
Less: Profit attributable to noncontrolling interests		1	0	4	2
Profit	[1]	$ 97	$ 109	$ 299	$ 346
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 98	$ 109	$ 303	$ 348
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	(5)	(206)	100	(472)
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	(10)	(1)	(15)	0
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	7	1	13	3
Available-for-sale securities:
Gains (losses) deferred, net of tax (expense)/benefit	1	0	(1)	0
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	0	0	0	0
Total Other comprehensive income (loss), net of tax	(7)	(206)	97	(469)
Comprehensive income (loss)	91	(97)	400	(121)
Less: Comprehensive income (loss) attributable to the noncontrolling interests	1	(6)	2	(3)
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 90	$ (91)	$ 398	$ (118)

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ 4	$ (2)	$ 21	$ (68)
Derivative financial instruments:
Gains (losses) deferred, tax	5	0	8	(1)
(Gains) losses reclassified to earnings, tax	(3)	0	(6)	(1)
Available-for-sale securities
Gains (losses) deferred, tax	(1)	0	(1)	0
(Gains) losses reclassified to earnings, tax	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Assets:
Cash and cash equivalents	$ 1,051	$ 1,016
Finance receivables, net	26,656	27,388
Notes receivable from Caterpillar	1,536	490
Equipment on operating leases, less accumulated depreciation	3,777	3,564
Deferred and refundable income taxes	147	240
Other assets	1,174	1,169
Total assets	34,341	33,867
Liabilities and stockholder's equity:
Payable to dealers and others	141	137
Payable to Caterpillar - other	46	62
Accrued expenses	191	200
Income taxes payable	32	47
Payable to Caterpillar - borrowings	1,817	1,096
Short-term borrowings	6,702	6,958
Current maturities of long-term debt	5,970	5,360
Long-term debt	15,190	16,209
Deferred income taxes and other liabilities	877	823
Total liabilities	30,966	30,892
Commitments and contingent liabilities (Notes 7 and 9)
Common stock - $1 par value Authorized: 2,000 shares; Issued and outstanding: one share (at paid-in amount)	745	745
Additional paid-in capital	2	2
Retained earnings	3,298	2,999
Accumulated other comprehensive income/(loss)	(798)	(897)
Noncontrolling interests	128	126
Total stockholder's equity	3,375	2,975
Total liabilities and stockholder's equity	$ 34,341	$ 33,867

Consolidated Statements of Fin6

Consolidated Statements of Financial Position (Parentheticals) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Stockholders’ Equity:
Common stock - par value	$ 1	$ 1
Common stock - authorized	2,000	2,000
Common stock - issued	1	1
Common stock - outstanding	1	1

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Noncontrolling interests
Balance at Dec. 31, 2014	$ 3,654	$ 745	$ 2	$ 3,139	$ (364)	$ 132
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Profit of consolidated companies	348			346		2
Dividend paid to Caterpillar	(250)			(250)
Foreign currency translation, net of tax	(472)				(467)	(5)
Derivative financial instruments, net of tax	3				3
Balance at Sep. 30, 2015	3,283	745	2	3,235	(828)	129
Balance at Dec. 31, 2015	2,975	745	2	2,999	(897)	126
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Profit of consolidated companies	303			299		4
Dividend paid to Caterpillar	0			0
Foreign currency translation, net of tax	100				102	(2)
Derivative financial instruments, net of tax	(2)				(2)
Available-for-sale securities, net of tax	(1)				(1)
Balance at Sep. 30, 2016	$ 3,375	$ 745	$ 2	$ 3,298	$ (798)	$ 128

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Profit of consolidated companies	$ 303	$ 348
Adjustments for non-cash items:
Depreciation and amortization	635	639
Amortization of receivables purchase discount	(158)	(169)
Provision for credit losses	96	89
Other, net	81	13
Changes in assets and liabilities:
Receivables from others	10	(41)
Other receivables/payables with Caterpillar	(2)	(16)
Payable to dealers and others	30	55
Accrued interest payable	(17)	(5)
Accrued expenses and other liabilities, net	22	(30)
Income taxes payable	100	72
Proceeds from interest rate contracts	36	2
Debt exchange premium	(33)	0
Net cash provided by operating activities	1,103	957
Cash flows from investing activities:
Capital expenditures for equipment on operating leases and other capital expenditures	(1,265)	(993)
Proceeds from disposals of equipment	497	418
Additions to finance receivables	(8,888)	(9,434)
Collections of finance receivables	9,307	9,000
Net changes in Caterpillar purchased receivables	580	758
Proceeds from sales of receivables	55	101
Net change in variable lending to Caterpillar	(1,001)	0
Additions to other notes receivable with Caterpillar	(91)	(100)
Collections on other notes receivable with Caterpillar	46	46
Restricted cash and cash equivalents activity, net	7	1
Settlements of derivatives	(23)	(43)
Net cash provided by (used for) investing activities	(776)	(246)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	466	0
Proceeds from borrowings with Caterpillar	253	0
Payments on borrowings with Caterpillar	(3)	0
Proceeds from debt issued (original maturities greater than three months)	4,424	4,079
Payments on debt issued (original maturities greater than three months)	(5,077)	(6,259)
Short-term borrowings, net (original maturities three months or less)	(365)	1,917
Dividend paid to Caterpillar	0	(250)
Net cash provided by (used for) financing activities	(302)	(513)
Effect of exchange rate changes on cash and cash equivalents	10	(32)
Increase/(decrease) in cash and cash equivalents	35	166
Cash and cash equivalents at beginning of year	1,016	857
Cash and cash equivalents at end of period	1,051	1,023
Non-cash activity:
Debt exchange, original medium term notes amount	381
Debt exchange, new medium term notes amount	$ 366
Debt exchange, new medium term notes interest rate (as a percent)	1.93%
Debt exchange, new medium term notes due date (year)	2,021
Debt exchange, cash paid	$ 15
Debt exchange premium	$ 33	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated profit for the three and nine months ended September 30, 2016 and 2015 , (b) the consolidated comprehensive income for the three and nine months ended September 30, 2016 and 2015 , (c) the consolidated financial position as of September 30, 2016 and December 31, 2015 , (d) the consolidated changes in stockholder's equity for the nine months ended September 30, 2016 and 2015 and (e) the consolidated cash flows for the nine months ended September 30, 2016 and 2015 . The preparation of financial statements, 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), requires management to make estimates and assumptions that affect reported amounts. The most significant estimates include those related to the residual values for leased assets, our allowance for credit losses and income taxes. Actual results may differ from these estimates. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation. 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 consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015 ( 2015 Form 10-K) filed with the SEC on February 16, 2016. The December 31, 2015 financial position data included herein was derived from the audited consolidated financial statements included in the 2015 Form 10-K, but does not include all disclosures required by U.S. GAAP. We consolidate all variable-interest entities (VIEs) where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 7 for more information. We have customers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	9 Months Ended
	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income/(Loss)	Accumulated Other Comprehensive Income/(Loss) Comprehensive income/(loss) and its components are presented in the Consolidated Statements of Comprehensive Income. Changes in Accumulated other comprehensive income/(loss), net of tax, included in the Consolidated Statements of Changes in Stockholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Available-for- sale securities Total Three Months Ended September 30, 2015 Balance at June 30, 2015 $ (626 ) $ (2 ) $ — $ (628 ) Other comprehensive income/(loss) before reclassifications (200 ) (1 ) — (201 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 1 — 1 Other comprehensive income/(loss) (200 ) — — (200 ) Balance at September 30, 2015 $ (826 ) $ (2 ) $ — $ (828 ) Three Months Ended September 30, 2016 Balance at June 30, 2016 $ (790 ) $ 1 $ (2 ) $ (791 ) Other comprehensive income/(loss) before reclassifications (5 ) (10 ) 1 (14 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 7 — 7 Other comprehensive income/(loss) (5 ) (3 ) 1 (7 ) Balance at September 30, 2016 $ (795 ) $ (2 ) $ (1 ) $ (798 ) Nine Months Ended September 30, 2015 Balance at December 31, 2014 $ (359 ) $ (5 ) $ — $ (364 ) Other comprehensive income/(loss) before reclassifications (467 ) — — (467 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 3 — 3 Other comprehensive income/(loss) (467 ) 3 — (464 ) Balance at September 30, 2015 $ (826 ) $ (2 ) $ — $ (828 ) Nine Months Ended September 30, 2016 Balance at December 31, 2015 $ (897 ) $ — $ — $ (897 ) Other comprehensive income/(loss) before reclassifications 102 (15 ) (1 ) 86 Amounts reclassified from accumulated other comprehensive (income)/loss — 13 — 13 Other comprehensive income/(loss) 102 (2 ) (1 ) 99 Balance at September 30, 2016 $ (795 ) $ (2 ) $ (1 ) $ (798 ) The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Nine Months Ended Classification of income (expense) 2016 2015 2016 2015 Cross currency contracts Other income (expense) $ (10 ) $ — $ (16 ) $ — Interest rate contracts Interest expense — (1 ) (3 ) (4 ) Reclassifications before tax (10 ) (1 ) (19 ) (4 ) Tax (provision) benefit 3 — 6 1 Total reclassifications from Accumulated other comprehensive income/(loss) $ (7 ) $ (1 ) $ (13 ) $ (3 )

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Revenue recognition – In May 2014, the Financial Accounting Standards Board (FASB) issued new revenue recognition guidance to provide a single, comprehensive revenue recognition model for all contracts with customers. Under the new guidance, an entity will recognize revenue to depict the transfer of promised goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. A five step model has been introduced for an entity to apply when recognizing revenue. The new guidance also includes enhanced disclosure requirements and is effective January 1, 2018, with early adoption permitted for January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statement of Changes in Stockholder's Equity. We plan to adopt the new guidance effective January 1, 2018 and do not expect the adoption to have a material impact on our financial statements. Variable interest entities (VIEs) – In February 2015, the FASB issued accounting guidance on the consolidation of VIEs. The new guidance revises previous guidance by establishing an analysis for determining whether a limited partnership or similar entity is a VIE and whether outsourced decision-maker fees are considered variable interests. In addition, the new guidance revises how a reporting entity evaluates economics and related parties when assessing who should consolidate a VIE. The guidance was effective January 1, 2016 and did not have a material impact on our financial statements. Presentation of debt issuance costs – In April 2015, the FASB issued accounting guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. Prior to the issuance of the new guidance, debt issuance costs were required to be presented in the balance sheet as an asset. The guidance was effective January 1, 2016 and was applied retrospectively. The adoption did not have a material impact on our financial statements. Recognition and measurement of financial assets and financial liabilities – In January 2016, the FASB issued accounting guidance that affects the accounting for equity investments, financial liabilities accounted for under the fair value option and the presentation and disclosure requirements for financial instruments. Under the new guidance, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification for equity securities with readily determinable fair values. For financial liabilities when the fair value option has been elected, changes in fair value due to instrument-specific credit risk will be recognized separately in other comprehensive income. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new guidance is effective January 1, 2018, with the cumulative effect adjustment from initially applying the new guidance recognized in the Consolidated Statement of Financial Position as of the beginning of the year of adoption. We do not expect the adoption to have a material impact on our financial statements. Lease accounting – In February 2016, the FASB issued accounting guidance that revises the accounting for leases. Under the new guidance, lessees are required to recognize a right-of-use asset and a lease liability for all leases. The new guidance will continue to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. The accounting applied by a lessor under the new guidance will be substantially equivalent to current lease accounting guidance. The new guidance is effective January 1, 2019 with early adoption permitted. The new standard is required to be applied with a modified retrospective approach to each prior reporting period presented and provides for certain practical expedients. We are in the process of evaluating the effect of the new guidance on our financial statements. Measurement of credit losses on financial instruments – In June 2016, the FASB issued accounting guidance to introduce a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new guidance will apply to loans, accounts receivable, trade receivables, other financial assets measured at amortized cost, loan commitments and other off-balance sheet credit exposures. The new guidance will also apply to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance is effective January 1, 2020, with early adoption permitted beginning January 1, 2019. We are in the process of evaluating the effect of the new guidance on our financial statements. Classification for certain cash receipts and cash payments – In August 2016, the FASB issued accounting guidance related to the presentation and classification of certain transactions in the statement of cash flows where diversity in practice exists. The guidance is effective January 1, 2018 with early adoption permitted. We do not expect the adoption to have a material impact on our financial statements.

Finance Receivables

Finance Receivables	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Finance Receivables	Finance Receivables A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) September 30, December 31, Finance leases and installment sale contracts – Retail $ 13,766 $ 13,728 Retail notes receivable 10,492 10,616 Wholesale notes receivable 3,365 3,887 Finance leases and installment sale contracts – Wholesale 155 289 27,778 28,520 Less: Unearned income (776 ) (794 ) Recorded investment in finance receivables 27,002 27,726 Less: Allowance for credit losses (346 ) (338 ) Total finance receivables, net $ 26,656 $ 27,388 Allowance for Credit Losses The allowance for credit losses is an estimate of the losses inherent in our finance receivable portfolio and includes consideration of accounts that have been individually identified as impaired, as well as pools of finance receivables where it is probable that certain receivables in the pool are impaired but the individual accounts cannot yet be identified. In identifying and measuring impairment, management takes into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions. Accounts are identified for individual review based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated and determined to be impaired is based either on the present value of expected future cash flows discounted at the receivables' effective interest rate or the fair value of the collateral for collateral-dependent receivables. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. The allowance for credit losses attributable to the remaining accounts not yet individually identified as impaired is estimated based on loss forecast models utilizing probabilities of default, our estimate of the loss emergence period and the estimated loss given default. In addition, qualitative factors not able to be fully captured in our loss forecast models including industry trends, macroeconomic factors and model imprecision are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Our allowance for credit losses is segregated into three portfolio segments: • Customer - Finance receivables with retail customers. • Dealer - Finance receivables with Caterpillar dealers. • Caterpillar Purchased Receivables - Trade receivables purchased from Caterpillar entities. A portfolio segment is the level at which the Company develops a systematic methodology for determining its allowance for credit losses. We further evaluate our portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Typically, our finance receivables within a geographic area have similar credit risk profiles and methods for assessing and monitoring credit risk. Our classes, which align with management reporting for credit losses, are as follows: • North America - Includes finance receivables originated in the United States or Canada. • Europe - Includes finance receivables originated in Europe, Africa, Middle East and the Commonwealth of Independent States. • Asia/Pacific - Includes finance receivables originated in Australia, New Zealand, China, Japan, South Korea and Southeast Asia. • Mining - Includes finance receivables related to large mining customers worldwide and project financing in various countries. • Latin America - Includes finance receivables originated in Central and South American countries. • Caterpillar Power Finance - Includes finance receivables related to marine vessels with Caterpillar engines worldwide and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems worldwide. Our allowance for credit losses as of September 30, 2016 was $346 million or 1.28 percent of net finance receivables compared with $338 million or 1.22 percent as of December 31, 2015 . An analysis of the allowance for credit losses was as follows: (Millions of dollars) September 30, 2016 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 327 $ 9 $ 2 $ 338 Receivables written off (118 ) — — (118 ) Recoveries on receivables previously written off 25 — — 25 Provision for credit losses 93 2 — 95 Adjustment due to sale of receivables (1 ) — — (1 ) Foreign currency translation adjustment 7 — — 7 Balance at end of period $ 333 $ 11 $ 2 $ 346 Individually evaluated for impairment $ 85 $ — $ — $ 85 Collectively evaluated for impairment 248 11 2 261 Ending Balance $ 333 $ 11 $ 2 $ 346 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 819 $ — $ — $ 819 Collectively evaluated for impairment 19,155 4,795 2,233 26,183 Ending Balance $ 19,974 $ 4,795 $ 2,233 $ 27,002 (Millions of dollars) December 31, 2015 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 388 $ 10 $ 3 $ 401 Receivables written off (196 ) — — (196 ) Recoveries on receivables previously written off 41 — — 41 Provision for credit losses 119 (1 ) (1 ) 117 Adjustment due to sale of receivables (2 ) — — (2 ) Foreign currency translation adjustment (23 ) — — (23 ) Balance at end of year $ 327 $ 9 $ 2 $ 338 Individually evaluated for impairment $ 65 $ — $ — $ 65 Collectively evaluated for impairment 262 9 2 273 Ending Balance $ 327 $ 9 $ 2 $ 338 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 601 $ — $ — $ 601 Collectively evaluated for impairment 19,431 5,093 2,601 27,125 Ending Balance $ 20,032 $ 5,093 $ 2,601 $ 27,726 Credit quality of finance receivables At origination, we evaluate credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, we monitor credit quality based on past-due status and collection experience as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, we consider the entire finance receivable balance past due when any installment is over 30 days past due. The tables below summarize our recorded investment of finance receivables by aging category. (Millions of dollars) September 30, 2016 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 66 $ 18 $ 72 $ 156 $ 7,983 $ 8,139 $ 10 Europe 21 16 83 120 2,424 2,544 47 Asia/Pacific 30 10 20 60 2,057 2,117 4 Mining 4 1 63 68 1,802 1,870 — Latin America 57 39 222 318 1,866 2,184 — Caterpillar Power Finance 1 5 72 78 3,042 3,120 12 Dealer North America — — — — 2,971 2,971 — Europe — — — — 337 337 — Asia/Pacific — — — — 659 659 — Mining — — — — 7 7 — Latin America — — — — 819 819 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 9 4 2 15 1,292 1,307 2 Europe 1 — 1 2 273 275 — Asia/Pacific — — — — 348 348 — Mining — — — — — — — Latin America — — — — 300 300 — Caterpillar Power Finance — — — — 3 3 — Total $ 189 $ 93 $ 535 $ 817 $ 26,185 $ 27,002 $ 75 (Millions of dollars) December 31, 2015 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 45 $ 12 $ 30 $ 87 $ 8,031 $ 8,118 $ 4 Europe 18 7 44 69 2,358 2,427 9 Asia/Pacific 22 12 21 55 2,108 2,163 6 Mining 6 1 68 75 1,793 1,868 1 Latin America 45 31 199 275 1,998 2,273 — Caterpillar Power Finance — 1 35 36 3,147 3,183 2 Dealer North America — — — — 3,387 3,387 — Europe — — — — 330 330 — Asia/Pacific — — — — 611 611 — Mining — — — — 4 4 — Latin America — — — — 758 758 — Caterpillar Power Finance — — — — 3 3 — Caterpillar Purchased Receivables North America 16 5 1 22 1,386 1,408 1 Europe 4 — 4 8 307 315 3 Asia/Pacific — — — — 407 407 — Mining — — — — — — — Latin America — — — — 454 454 — Caterpillar Power Finance — 1 — 1 16 17 — Total $ 156 $ 70 $ 402 $ 628 $ 27,098 $ 27,726 $ 26 Impaired finance receivables For all classes, a finance receivable is considered impaired, based on current information and events, if it is probable that we will be unable to collect all amounts due according to the contractual terms. Impaired finance receivables include finance receivables that have been restructured and are considered to be Troubled Debt Restructures. There were no impaired finance receivables as of September 30, 2016 and December 31, 2015 , for the Dealer and Caterpillar Purchased Receivables portfolio segments. Our recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: (Millions of dollars) As of September 30, 2016 As of December 31, 2015 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 21 $ 21 $ — $ 12 $ 12 $ — Europe 49 48 — 41 41 — Asia/Pacific 2 2 — 1 1 — Mining 119 118 — 84 84 — Latin America 73 73 — 28 28 — Caterpillar Power Finance 290 289 — 242 241 — Total $ 554 $ 551 $ — $ 408 $ 407 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 50 $ 48 $ 19 $ 14 $ 13 $ 4 Europe 9 9 5 11 10 5 Asia/Pacific 33 33 5 34 34 4 Mining 38 38 6 11 11 3 Latin America 91 103 33 53 53 21 Caterpillar Power Finance 44 44 17 70 70 28 Total $ 265 $ 275 $ 85 $ 193 $ 191 $ 65 Total Impaired Finance Receivables North America $ 71 $ 69 $ 19 $ 26 $ 25 $ 4 Europe 58 57 5 52 51 5 Asia/Pacific 35 35 5 35 35 4 Mining 157 156 6 95 95 3 Latin America 164 176 33 81 81 21 Caterpillar Power Finance 334 333 17 312 311 28 Total $ 819 $ 826 $ 85 $ 601 $ 598 $ 65 (Millions of dollars) Three Months Ended Three Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 24 $ — $ 10 $ 1 Europe 49 1 43 — Asia/Pacific 1 — 1 — Mining 90 2 63 — Latin America 58 — 32 — Caterpillar Power Finance 282 3 165 1 Total $ 504 $ 6 $ 314 $ 2 Impaired Finance Receivables With An Allowance Recorded North America $ 42 $ — $ 10 $ — Europe 10 — 15 — Asia/Pacific 35 — 63 — Mining 19 — 9 — Latin America 67 1 69 1 Caterpillar Power Finance 43 — 125 2 Total $ 216 $ 1 $ 291 $ 3 Total Impaired Finance Receivables North America $ 66 $ — $ 20 $ 1 Europe 59 1 58 — Asia/Pacific 36 — 64 — Mining 109 2 72 — Latin America 125 1 101 1 Caterpillar Power Finance 325 3 290 3 Total $ 720 $ 7 $ 605 $ 5 (Millions of dollars) Nine Months Ended Nine Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 19 $ 1 $ 12 $ 1 Europe 45 1 43 — Asia/Pacific 2 — 2 — Mining 84 3 80 3 Latin America 39 — 32 — Caterpillar Power Finance 269 8 157 3 Total $ 458 $ 13 $ 326 $ 7 Impaired Finance Receivables With An Allowance Recorded North America $ 28 $ — $ 7 $ — Europe 11 — 15 1 Asia/Pacific 34 2 42 1 Mining 15 — 47 1 Latin America 59 2 56 2 Caterpillar Power Finance 50 1 128 3 Total $ 197 $ 5 $ 295 $ 8 Total Impaired Finance Receivables North America $ 47 $ 1 $ 19 $ 1 Europe 56 1 58 1 Asia/Pacific 36 2 44 1 Mining 99 3 127 4 Latin America 98 2 88 2 Caterpillar Power Finance 319 9 285 6 Total $ 655 $ 18 $ 621 $ 15 Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. As of September 30, 2016 and December 31, 2015 , there were no finance receivables on non-accrual status for the Dealer portfolio segment. As of September 30, 2016 and December 31, 2015 , there was $1 million in finance receivables on non-accrual status for the Caterpillar Purchased Receivables portfolio segment, all of which was in the Europe finance receivable class. The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) September 30, December 31, North America $ 71 $ 31 Europe 38 39 Asia/Pacific 16 15 Mining 131 106 Latin America 299 217 Caterpillar Power Finance 69 77 Total $ 624 $ 485 Troubled debt restructurings A restructuring of a finance receivable constitutes a troubled debt restructuring (TDR) when the lender grants a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest. As of September 30, 2016 and December 31, 2015 , there were $11 million and $3 million , respectively, of additional funds committed to lend to a borrower whose terms have been modified in a TDR. There were no finance receivables modified as TDRs during the three and nine months ended September 30, 2016 and 2015 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 2 $ — $ — 6 $ — $ — Europe — — — 4 — — Asia/Pacific 4 1 1 1 1 1 Mining 1 33 30 2 15 14 Latin America (1) 341 105 74 10 1 2 Caterpillar Power Finance 4 13 13 8 93 79 Total 352 $ 152 $ 118 31 $ 110 $ 96 Nine Months Ended Nine Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 15 $ 16 $ 16 10 $ 1 $ 1 Europe 3 11 8 23 2 2 Asia/Pacific 8 4 4 21 26 26 Mining 2 43 35 2 15 14 Latin America 431 117 87 10 1 2 Caterpillar Power Finance 34 196 177 12 197 180 Total 493 $ 387 $ 327 78 $ 242 $ 225 (1) In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers. TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2016 and 2015 , which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 1 $ — 5 $ — Europe 1 — — — Latin America 2 — — — Total 4 $ — 5 $ — Nine Months Ended Nine Months Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 14 $ 3 10 $ 1 Europe 14 1 — — Asia/Pacific 3 — — — Latin America 4 — 1 — Total 35 $ 4 11 $ 1

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	9 Months Ended
	Sep. 30, 2016
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 and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to manage foreign currency exchange rate and interest rate 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 and interest rate contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. Risk management practices, including the use of financial derivative instruments, are presented to our Board of Directors and the Audit Committee of the Caterpillar Inc. Board of Directors at least annually. All derivatives are recognized on the Consolidated Statements of Financial Position at their fair value. On the date the derivative contract is entered into, the derivative instrument is (1) designated as a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) designated as a hedge of a forecasted transaction or the variability of cash flows (cash flow hedge) or (3) undesignated. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in Accumulated other comprehensive income/(loss) (AOCI), to the extent effective, on the Consolidated Statements of Financial Position until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged on the Consolidated Statements of Cash Flows. Cash flows from undesignated derivative financial instruments are included in the investing category on the Consolidated Statements of Cash Flows. 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 Statements 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 value 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 derecognition criteria for hedge accounting. Foreign currency exchange rate risk We have balance sheet positions and expected future transactions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. In managing foreign currency risk, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward, option and cross currency contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed rate assets and liabilities. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. We have a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of our debt portfolio with the interest rate profile of our finance receivable 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 finance receivable 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. As of September 30, 2016 , less than $1 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statements of Financial Position), related to our floating-to-fixed interest rate contracts, are expected to be reclassified to Interest expense over the next twelve months. The actual amount recorded in Interest expense will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating interest rate contracts. The deferred gains are being amortized to Interest expense over the remaining term of the previously designated hedged item. During the third quarter of 2016, we liquidated fixed-to-floating interest rate contracts that resulted in deferred gains of $32 million , which is included in Long-term debt in the Consolidated Statements of Financial Position. The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of Financial Position Location September 30, December 31, Designated derivatives Interest rate contracts Other assets $ 5 $ 51 Interest rate contracts Accrued expenses (2 ) (4 ) Cross currency contracts Other assets 4 1 Cross currency contracts Accrued expenses (15 ) — $ (8 ) $ 48 Undesignated derivatives Foreign exchange contracts Other assets $ 2 $ 3 Foreign exchange contracts Accrued expenses (5 ) (6 ) Cross currency contracts Other assets 28 36 $ 25 $ 33 The total notional amount of our derivative instruments was $2.91 billion and $3.54 billion as of September 30, 2016 and December 31, 2015 , respectively. The notional amounts of derivative financial instruments do not represent amounts exchanged by the parties. The amounts exchanged by the parties are calculated by reference to the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates and interest rates. The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Fair Value Hedges (Millions of dollars) Three Months Ended Three Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (11 ) $ 11 $ 3 $ (3 ) Nine Months Ended Nine Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (11 ) $ 10 $ (11 ) $ 10 Cash Flow Hedges (Millions of dollars) Three Months Ended September 30, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 2 Interest expense $ — $ — Cross currency contracts (17 ) Other income (expense) (10 ) — $ (15 ) $ (10 ) $ — Three Months Ended September 30, 2015 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (1 ) Interest expense $ (1 ) $ — Nine Months Ended September 30, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ (3 ) $ — Cross currency contracts (23 ) Other income (expense) (16 ) — $ (23 ) $ (19 ) $ — Nine Months Ended September 30, 2015 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 1 Interest expense $ (4 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended September 30, Classification 2016 2015 Foreign exchange contracts Other income (expense) $ (5 ) $ (2 ) Cross currency contracts Other income (expense) — 8 $ (5 ) $ 6 Nine Months Ended September 30, Classification 2016 2015 Foreign exchange contracts Other income (expense) $ (21 ) $ (34 ) Cross currency contracts Other income (expense) (12 ) 16 $ (33 ) $ (18 ) Balance sheet offsetting We enter into International Swaps and Derivatives Association (ISDA) master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits us 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 us under the master netting agreements. As of September 30, 2016 and December 31, 2015 , no cash collateral was received or pledged under the master netting agreements. The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) September 30, December 31, Derivative Assets Gross Amount of Recognized Assets $ 39 $ 91 Gross Amounts Offset — — Net Amount of Assets (1) 39 91 Gross Amounts Not Offset (3 ) (5 ) Net Amount $ 36 $ 86 Derivative Liabilities Gross Amount of Recognized Liabilities $ (22 ) $ (10 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (22 ) (10 ) Gross Amounts Not Offset 3 5 Net Amount $ (19 ) $ (5 ) (1) As presented in the Consolidated Statements of Financial Position.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information A. Basis for Segment Information We report information internally for operating segments based on management responsibility. Our operating segments offer financing to customers and dealers for the purchase and lease of Caterpillar and other equipment, as well as financing for Caterpillar sales to dealers. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans within each of the respective segments. B. Description of Segments We have five operating segments that offer financing services. Following is a brief description of our segments: • North America - Includes our operations in the United States and Canada. • Europe - Includes our operations in Europe, Africa, Middle East and the Commonwealth of Independent States. • Asia/Pacific - Includes our operations in Australia, New Zealand, China, Japan, South Korea and Southeast Asia. • Latin America and Caterpillar Power Finance - Includes our operations in Central and South American countries. This segment also includes Caterpillar Power Finance (CPF), which finances marine vessels with Caterpillar engines worldwide and also provides financing for Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems worldwide. • Mining - Serves large mining customers worldwide and provides project financing in various countries. C. Segment Measurement and Reconciliations Cash, debt and other expenses are allocated to our segments based on their respective portfolios. The related Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt. The performance of each segment is assessed based on a consistent leverage ratio. The Provision for credit losses is based on each segment's respective finance receivable portfolio. Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures. Reconciling items are created based on accounting differences between segment reporting and consolidated external reporting. For the reconciliation of profit before income taxes, we have grouped the reconciling items as follows: • Unallocated - This item is related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the special purpose corporation (see Note 7 for additional information) and other miscellaneous items. • Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting. • Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows: ◦ Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities. ◦ The impact of differences between the actual leverage and the segment leverage ratios. ◦ Interest expense includes realized forward points on foreign currency forward contracts. ◦ The net gain or loss from interest rate derivatives. ◦ The profit attributable to noncontrolling interests is considered a component of segment profit. Supplemental segment data and reconciliations to consolidated external reporting for the three months ended September 30 was as follows: (Millions of dollars) 2016 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2016 Capital expenditures North America $ 310 $ 79 $ 70 $ 123 $ 10 $ 14,709 $ 281 Europe 68 21 8 21 1 3,861 44 Asia/Pacific 65 20 21 8 1 3,722 4 Latin America and CPF 122 31 36 15 17 7,065 11 Mining 73 14 11 45 (3 ) 2,715 19 Total Segments 638 165 146 212 26 32,072 359 Unallocated 21 (35 ) 32 — — 2,723 (3 ) Timing (8 ) (7 ) — 1 3 46 — Methodology — 23 (27 ) — — (217 ) — Inter-segment Eliminations (1) — — — — — (283 ) — Total $ 651 $ 146 $ 151 $ 213 $ 29 $ 34,341 $ 356 2015 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2015 Capital expenditures North America $ 291 $ 99 $ 66 $ 102 $ (4 ) $ 14,419 $ 292 Europe 69 28 7 18 — 3,758 31 Asia/Pacific 66 17 22 5 2 3,923 2 Latin America and CPF 127 21 37 25 18 7,376 31 Mining 92 4 13 57 7 2,947 — Total Segments 645 169 145 207 23 32,423 356 Unallocated 16 (27 ) 17 — — 1,743 — Timing (8 ) (3 ) — — (1 ) 164 1 Methodology — 14 (18 ) — — (216 ) — Inter-segment Eliminations (1) — — — — — (247 ) — Total $ 653 $ 153 $ 144 $ 207 $ 22 $ 33,867 $ 357 (1) Elimination is primarily related to intercompany loans. Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows: (Millions of dollars) 2016 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2016 Capital expenditures North America $ 927 $ 255 $ 216 $ 350 $ 23 $ 14,709 $ 933 Europe 202 63 25 62 3 3,861 120 Asia/Pacific 190 56 62 21 6 3,722 73 Latin America and CPF 367 76 118 47 59 7,065 35 Mining 232 35 35 145 3 2,715 105 Total Segments 1,918 485 456 625 94 32,072 1,266 Unallocated 60 (99 ) 81 — 1 2,723 — Timing (25 ) (13 ) — 2 1 46 (1 ) Methodology — 66 (79 ) — — (217 ) — Inter-segment Eliminations (1) — — — — — (283 ) — Total $ 1,953 $ 439 $ 458 $ 627 $ 96 $ 34,341 $ 1,265 2015 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2015 Capital expenditures North America $ 865 $ 289 $ 193 $ 303 $ (2 ) $ 14,419 $ 746 Europe 216 85 24 57 — 3,758 83 Asia/Pacific 223 52 80 15 22 3,923 19 Latin America and CPF 400 69 113 81 58 7,376 74 Mining 296 46 42 173 9 2,947 69 Total Segments 2,000 541 452 629 87 32,423 991 Unallocated 48 (75 ) 48 — — 1,743 — Timing (23 ) (17 ) — — 2 164 2 Methodology — 41 (55 ) — — (216 ) — Inter-segment Eliminations (1) — — — — — (247 ) — Total $ 2,025 $ 490 $ 445 $ 629 $ 89 $ 33,867 $ 993 (1) Elimination is primarily related to intercompany loans.

Guarantees

Guarantees	9 Months Ended
	Sep. 30, 2016
Guarantees [Abstract]
Guarantees	Guarantees We provide loan guarantees to third-party lenders for financing associated with machinery purchased by customers. These guarantees have varying terms and are secured by the machinery being financed. In addition, we participate in standby letters of credit issued to third parties on behalf of our customers. These standby letters of credit have varying terms and beneficiaries and are secured by customer assets. No significant loss has been experienced or is anticipated under any of these guarantees. At September 30, 2016 and December 31, 2015 , the related recorded liability was less than $1 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 $42 million and $39 million at September 30, 2016 and December 31, 2015 , respectively. We provide guarantees to repurchase certain loans of Caterpillar dealers from a special purpose corporation (SPC) that qualifies as a VIE (see Note 1 for additional information regarding the accounting guidance on the consolidation of VIEs). 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. We have a loan purchase agreement with the SPC that obligates us to purchase certain loans that are not paid at maturity. We receive a fee for providing this guarantee, which provides a source of liquidity for the SPC. We are the primary beneficiary of the SPC as our guarantees result in us 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 we have consolidated the financial statements of the SPC. As of September 30, 2016 and December 31, 2015 , the SPC’s assets of $1.15 billion and $1.21 billion , respectively, were primarily comprised of loans to dealers, which are included in Finance receivables, net in the Consolidated Statements of Financial Position, and the SPC's liabilities of $1.15 billion and $1.21 billion , respectively, were primarily comprised of commercial paper, which is included in Short-term borrowings in the Consolidated Statements of Financial Position. The assets of the SPC are not available to pay our creditors. We 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.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements 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 internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or us) will not be fulfilled. For financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (Level 2 and 3), our fair value calculations have been adjusted accordingly. Derivative financial instruments The fair value of interest rate contracts is primarily based on standard industry accepted models that utilize the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency forward and cross currency contracts is based on a standard industry accepted valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate. Derivative financial instruments are measured on a recurring basis at fair value and are classified as Level 2 measurements. We had derivative financial instruments in a net asset position, included in our Consolidated Statements of Financial Position of $17 million and $81 million as of September 30, 2016 and December 31, 2015 , respectively. Investment in equity securities Investment in certain equity securities have been classified as available-for-sale and recorded at fair value. Fair values for our investment in equity securities are based upon valuations for identical instruments in active markets. Equity securities are measured on a recurring basis at fair value and are classified as Level 1 measurements. We had equity securities, included in our Consolidated Statements of Financial Position of $2 million as of September 30, 2016 . Impaired loans Our impaired loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is considered impaired when management determines that collection of contractual amounts due is not probable. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables' effective interest rate, or the fair value of the collateral for collateral-dependent receivables. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We had impaired loans carried at the fair value of $122 million and $91 million as of September 30, 2016 and December 31, 2015 , respectively. B. Fair Values of Financial Instruments In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair Value Measurements section above, we used the following methods and assumptions to estimate the fair value of our financial instruments. Cash and cash equivalents – carrying amount approximated fair value. Finance receivables, net – fair value was estimated by discounting the future cash flows using current rates representative of receivables with similar remaining maturities. Restricted cash and cash equivalents – carrying amount approximated fair value. Short-term borrowings – carrying amount approximated fair value. Long-term debt – fair value for fixed and floating-rate debt was estimated based on quoted market prices. Guarantees – fair value of guarantees is based on our estimate of the premium a market participant would require to issue the same guarantee in a stand-alone, arms-length transaction with an unrelated party. If quoted or observable market prices are not available, fair value is based upon internally developed models that utilize current market-based assumptions. Please refer to the table below for the fair values of our financial instruments. (Millions of dollars) September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 1,051 $ 1,051 $ 1,016 $ 1,016 1 Finance receivables, net (excluding finance leases (1) ) $ 20,435 $ 20,397 $ 20,935 $ 20,925 3 Note 4 Interest rate contracts: In a net receivable position $ 5 $ 5 $ 51 $ 51 2 Note 5 In a net payable position $ (2 ) $ (2 ) $ (4 ) $ (4 ) 2 Note 5 Cross currency contracts: In a receivable position $ 32 $ 32 $ 37 $ 37 2 Note 5 In a payable position $ (15 ) $ (15 ) $ — $ — 2 Note 5 Foreign currency contracts: In a receivable position $ 2 $ 2 $ 3 $ 3 2 Note 5 In a payable position $ (5 ) $ (5 ) $ (6 ) $ (6 ) 2 Note 5 Restricted cash and cash equivalents (2) $ 11 $ 11 $ 18 $ 18 1 Investment in equity securities $ 2 $ 2 $ — $ — 1 Short-term borrowings $ (6,702 ) $ (6,702 ) $ (6,958 ) $ (6,958 ) 1 Long-term debt $ (21,160 ) $ (21,669 ) $ (21,569 ) $ (21,904 ) 2 Guarantees $ — $ — $ — $ — 3 Note 7 (1) As of September 30, 2016 and December 31, 2015 , represents finance leases with a net carrying value of $6.22 billion and $6.45 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies We are involved in unresolved legal actions that arise in the normal course of business. Although it is not possible to predict with certainty the outcome of our unresolved legal actions, we believe that these unresolved legal actions will neither individually nor 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, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Provision for income taxes reflects an estimated annual tax rate of 31 percent in the third quarter of 2016 compared with 29 percent in the third quarter of 2015 . The increase in the estimated annual tax rate is primarily due to changes in the geographic mix of profits.

Employee Separation Charges

Employee Separation Charges	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Employee Separation Charges	Employee Separation Charges Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, eligible separation costs are recognized at the time of employee acceptance unless the acceptance requires explicit approval by the Company. For involuntary programs, eligible costs are recognized when management has approved the program, the affected employees have been properly notified and the costs are estimable. In September 2015, Caterpillar Inc. announced restructuring and cost reduction actions to lower operating costs in response to weak economic and business conditions. As part of the announcement, we offered a voluntary retirement enhancement program to qualifying U.S. employees. For the year-ended December 31, 2015, we recognized employee separation charges of $15 million , which is included in Other expenses in the Consolidated Statements of Profit, primarily related to the voluntary retirement enhancement program. The following table summarizes the 2015 and 2016 separation activity: (Millions of dollars) Liability balance at December 31, 2014 $ — Increase in liability (separation charges) 15 Reduction in liability (payments) (5 ) Liability balance at December 31, 2015 $ 10 Increase in liability (separation charges) — Reduction in liability (payments) (10 ) Liability balance at September 30, 2016 $ —

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Income/(Loss) (Tables)	9 Months Ended
	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated other comprehensive income/(loss)	Changes in Accumulated other comprehensive income/(loss), net of tax, included in the Consolidated Statements of Changes in Stockholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Available-for- sale securities Total Three Months Ended September 30, 2015 Balance at June 30, 2015 $ (626 ) $ (2 ) $ — $ (628 ) Other comprehensive income/(loss) before reclassifications (200 ) (1 ) — (201 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 1 — 1 Other comprehensive income/(loss) (200 ) — — (200 ) Balance at September 30, 2015 $ (826 ) $ (2 ) $ — $ (828 ) Three Months Ended September 30, 2016 Balance at June 30, 2016 $ (790 ) $ 1 $ (2 ) $ (791 ) Other comprehensive income/(loss) before reclassifications (5 ) (10 ) 1 (14 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 7 — 7 Other comprehensive income/(loss) (5 ) (3 ) 1 (7 ) Balance at September 30, 2016 $ (795 ) $ (2 ) $ (1 ) $ (798 ) Nine Months Ended September 30, 2015 Balance at December 31, 2014 $ (359 ) $ (5 ) $ — $ (364 ) Other comprehensive income/(loss) before reclassifications (467 ) — — (467 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 3 — 3 Other comprehensive income/(loss) (467 ) 3 — (464 ) Balance at September 30, 2015 $ (826 ) $ (2 ) $ — $ (828 ) Nine Months Ended September 30, 2016 Balance at December 31, 2015 $ (897 ) $ — $ — $ (897 ) Other comprehensive income/(loss) before reclassifications 102 (15 ) (1 ) 86 Amounts reclassified from accumulated other comprehensive (income)/loss — 13 — 13 Other comprehensive income/(loss) 102 (2 ) (1 ) 99 Balance at September 30, 2016 $ (795 ) $ (2 ) $ (1 ) $ (798 )
Reclassifications out of Accumulated other comprehensive income/(loss)	The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Nine Months Ended Classification of income (expense) 2016 2015 2016 2015 Cross currency contracts Other income (expense) $ (10 ) $ — $ (16 ) $ — Interest rate contracts Interest expense — (1 ) (3 ) (4 ) Reclassifications before tax (10 ) (1 ) (19 ) (4 ) Tax (provision) benefit 3 — 6 1 Total reclassifications from Accumulated other comprehensive income/(loss) $ (7 ) $ (1 ) $ (13 ) $ (3 )

Finance Receivables (Tables)

Finance Receivables (Tables)	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Summary of finance receivables included in the Consolidated Statements of Financial Position	A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) September 30, December 31, Finance leases and installment sale contracts – Retail $ 13,766 $ 13,728 Retail notes receivable 10,492 10,616 Wholesale notes receivable 3,365 3,887 Finance leases and installment sale contracts – Wholesale 155 289 27,778 28,520 Less: Unearned income (776 ) (794 ) Recorded investment in finance receivables 27,002 27,726 Less: Allowance for credit losses (346 ) (338 ) Total finance receivables, net $ 26,656 $ 27,388
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) September 30, 2016 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 327 $ 9 $ 2 $ 338 Receivables written off (118 ) — — (118 ) Recoveries on receivables previously written off 25 — — 25 Provision for credit losses 93 2 — 95 Adjustment due to sale of receivables (1 ) — — (1 ) Foreign currency translation adjustment 7 — — 7 Balance at end of period $ 333 $ 11 $ 2 $ 346 Individually evaluated for impairment $ 85 $ — $ — $ 85 Collectively evaluated for impairment 248 11 2 261 Ending Balance $ 333 $ 11 $ 2 $ 346 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 819 $ — $ — $ 819 Collectively evaluated for impairment 19,155 4,795 2,233 26,183 Ending Balance $ 19,974 $ 4,795 $ 2,233 $ 27,002 (Millions of dollars) December 31, 2015 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 388 $ 10 $ 3 $ 401 Receivables written off (196 ) — — (196 ) Recoveries on receivables previously written off 41 — — 41 Provision for credit losses 119 (1 ) (1 ) 117 Adjustment due to sale of receivables (2 ) — — (2 ) Foreign currency translation adjustment (23 ) — — (23 ) Balance at end of year $ 327 $ 9 $ 2 $ 338 Individually evaluated for impairment $ 65 $ — $ — $ 65 Collectively evaluated for impairment 262 9 2 273 Ending Balance $ 327 $ 9 $ 2 $ 338 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 601 $ — $ — $ 601 Collectively evaluated for impairment 19,431 5,093 2,601 27,125 Ending Balance $ 20,032 $ 5,093 $ 2,601 $ 27,726
Aging related to finance receivables	The tables below summarize our recorded investment of finance receivables by aging category. (Millions of dollars) September 30, 2016 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 66 $ 18 $ 72 $ 156 $ 7,983 $ 8,139 $ 10 Europe 21 16 83 120 2,424 2,544 47 Asia/Pacific 30 10 20 60 2,057 2,117 4 Mining 4 1 63 68 1,802 1,870 — Latin America 57 39 222 318 1,866 2,184 — Caterpillar Power Finance 1 5 72 78 3,042 3,120 12 Dealer North America — — — — 2,971 2,971 — Europe — — — — 337 337 — Asia/Pacific — — — — 659 659 — Mining — — — — 7 7 — Latin America — — — — 819 819 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 9 4 2 15 1,292 1,307 2 Europe 1 — 1 2 273 275 — Asia/Pacific — — — — 348 348 — Mining — — — — — — — Latin America — — — — 300 300 — Caterpillar Power Finance — — — — 3 3 — Total $ 189 $ 93 $ 535 $ 817 $ 26,185 $ 27,002 $ 75 (Millions of dollars) December 31, 2015 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 45 $ 12 $ 30 $ 87 $ 8,031 $ 8,118 $ 4 Europe 18 7 44 69 2,358 2,427 9 Asia/Pacific 22 12 21 55 2,108 2,163 6 Mining 6 1 68 75 1,793 1,868 1 Latin America 45 31 199 275 1,998 2,273 — Caterpillar Power Finance — 1 35 36 3,147 3,183 2 Dealer North America — — — — 3,387 3,387 — Europe — — — — 330 330 — Asia/Pacific — — — — 611 611 — Mining — — — — 4 4 — Latin America — — — — 758 758 — Caterpillar Power Finance — — — — 3 3 — Caterpillar Purchased Receivables North America 16 5 1 22 1,386 1,408 1 Europe 4 — 4 8 307 315 3 Asia/Pacific — — — — 407 407 — Mining — — — — — — — Latin America — — — — 454 454 — Caterpillar Power Finance — 1 — 1 16 17 — Total $ 156 $ 70 $ 402 $ 628 $ 27,098 $ 27,726 $ 26
Impaired finance receivables	Our recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: (Millions of dollars) As of September 30, 2016 As of December 31, 2015 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 21 $ 21 $ — $ 12 $ 12 $ — Europe 49 48 — 41 41 — Asia/Pacific 2 2 — 1 1 — Mining 119 118 — 84 84 — Latin America 73 73 — 28 28 — Caterpillar Power Finance 290 289 — 242 241 — Total $ 554 $ 551 $ — $ 408 $ 407 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 50 $ 48 $ 19 $ 14 $ 13 $ 4 Europe 9 9 5 11 10 5 Asia/Pacific 33 33 5 34 34 4 Mining 38 38 6 11 11 3 Latin America 91 103 33 53 53 21 Caterpillar Power Finance 44 44 17 70 70 28 Total $ 265 $ 275 $ 85 $ 193 $ 191 $ 65 Total Impaired Finance Receivables North America $ 71 $ 69 $ 19 $ 26 $ 25 $ 4 Europe 58 57 5 52 51 5 Asia/Pacific 35 35 5 35 35 4 Mining 157 156 6 95 95 3 Latin America 164 176 33 81 81 21 Caterpillar Power Finance 334 333 17 312 311 28 Total $ 819 $ 826 $ 85 $ 601 $ 598 $ 65 (Millions of dollars) Three Months Ended Three Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 24 $ — $ 10 $ 1 Europe 49 1 43 — Asia/Pacific 1 — 1 — Mining 90 2 63 — Latin America 58 — 32 — Caterpillar Power Finance 282 3 165 1 Total $ 504 $ 6 $ 314 $ 2 Impaired Finance Receivables With An Allowance Recorded North America $ 42 $ — $ 10 $ — Europe 10 — 15 — Asia/Pacific 35 — 63 — Mining 19 — 9 — Latin America 67 1 69 1 Caterpillar Power Finance 43 — 125 2 Total $ 216 $ 1 $ 291 $ 3 Total Impaired Finance Receivables North America $ 66 $ — $ 20 $ 1 Europe 59 1 58 — Asia/Pacific 36 — 64 — Mining 109 2 72 — Latin America 125 1 101 1 Caterpillar Power Finance 325 3 290 3 Total $ 720 $ 7 $ 605 $ 5 (Millions of dollars) Nine Months Ended Nine Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 19 $ 1 $ 12 $ 1 Europe 45 1 43 — Asia/Pacific 2 — 2 — Mining 84 3 80 3 Latin America 39 — 32 — Caterpillar Power Finance 269 8 157 3 Total $ 458 $ 13 $ 326 $ 7 Impaired Finance Receivables With An Allowance Recorded North America $ 28 $ — $ 7 $ — Europe 11 — 15 1 Asia/Pacific 34 2 42 1 Mining 15 — 47 1 Latin America 59 2 56 2 Caterpillar Power Finance 50 1 128 3 Total $ 197 $ 5 $ 295 $ 8 Total Impaired Finance Receivables North America $ 47 $ 1 $ 19 $ 1 Europe 56 1 58 1 Asia/Pacific 36 2 44 1 Mining 99 3 127 4 Latin America 98 2 88 2 Caterpillar Power Finance 319 9 285 6 Total $ 655 $ 18 $ 621 $ 15
Recorded investment in customer finance receivables on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) September 30, December 31, North America $ 71 $ 31 Europe 38 39 Asia/Pacific 16 15 Mining 131 106 Latin America 299 217 Caterpillar Power Finance 69 77 Total $ 624 $ 485
Finance receivables modified as TDRs	Finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 2 $ — $ — 6 $ — $ — Europe — — — 4 — — Asia/Pacific 4 1 1 1 1 1 Mining 1 33 30 2 15 14 Latin America (1) 341 105 74 10 1 2 Caterpillar Power Finance 4 13 13 8 93 79 Total 352 $ 152 $ 118 31 $ 110 $ 96 Nine Months Ended Nine Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 15 $ 16 $ 16 10 $ 1 $ 1 Europe 3 11 8 23 2 2 Asia/Pacific 8 4 4 21 26 26 Mining 2 43 35 2 15 14 Latin America 431 117 87 10 1 2 Caterpillar Power Finance 34 196 177 12 197 180 Total 493 $ 387 $ 327 78 $ 242 $ 225 (1) In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers. TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2016 and 2015 , which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 1 $ — 5 $ — Europe 1 — — — Latin America 2 — — — Total 4 $ — 5 $ — Nine Months Ended Nine Months Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 14 $ 3 10 $ 1 Europe 14 1 — — Asia/Pacific 3 — — — Latin America 4 — 1 — Total 35 $ 4 11 $ 1

Derivative Financial Instrume22

Derivative Financial Instruments and Risk Management (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position	The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of Financial Position Location September 30, December 31, Designated derivatives Interest rate contracts Other assets $ 5 $ 51 Interest rate contracts Accrued expenses (2 ) (4 ) Cross currency contracts Other assets 4 1 Cross currency contracts Accrued expenses (15 ) — $ (8 ) $ 48 Undesignated derivatives Foreign exchange contracts Other assets $ 2 $ 3 Foreign exchange contracts Accrued expenses (5 ) (6 ) Cross currency contracts Other assets 28 36 $ 25 $ 33
Schedule of effect of derivatives designated as fair value hedging instruments in the Consolidated Statements of Profit	The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Fair Value Hedges (Millions of dollars) Three Months Ended Three Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (11 ) $ 11 $ 3 $ (3 ) Nine Months Ended Nine Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (11 ) $ 10 $ (11 ) $ 10
Schedule of effect of derivatives designated as cash flow hedging instruments in the Consolidated Statements of Profit	Cash Flow Hedges (Millions of dollars) Three Months Ended September 30, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 2 Interest expense $ — $ — Cross currency contracts (17 ) Other income (expense) (10 ) — $ (15 ) $ (10 ) $ — Three Months Ended September 30, 2015 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (1 ) Interest expense $ (1 ) $ — Nine Months Ended September 30, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ (3 ) $ — Cross currency contracts (23 ) Other income (expense) (16 ) — $ (23 ) $ (19 ) $ — Nine Months Ended September 30, 2015 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 1 Interest expense $ (4 ) $ —
Schedule of effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit	The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended September 30, Classification 2016 2015 Foreign exchange contracts Other income (expense) $ (5 ) $ (2 ) Cross currency contracts Other income (expense) — 8 $ (5 ) $ 6 Nine Months Ended September 30, Classification 2016 2015 Foreign exchange contracts Other income (expense) $ (21 ) $ (34 ) Cross currency contracts Other income (expense) (12 ) 16 $ (33 ) $ (18 )
Schedule of offsetting of derivative assets and liabilities	The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) September 30, December 31, Derivative Assets Gross Amount of Recognized Assets $ 39 $ 91 Gross Amounts Offset — — Net Amount of Assets (1) 39 91 Gross Amounts Not Offset (3 ) (5 ) Net Amount $ 36 $ 86 Derivative Liabilities Gross Amount of Recognized Liabilities $ (22 ) $ (10 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (22 ) (10 ) Gross Amounts Not Offset 3 5 Net Amount $ (19 ) $ (5 ) (1) As presented in the Consolidated Statements of Financial Position.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the three months ended September 30 was as follows: (Millions of dollars) 2016 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2016 Capital expenditures North America $ 310 $ 79 $ 70 $ 123 $ 10 $ 14,709 $ 281 Europe 68 21 8 21 1 3,861 44 Asia/Pacific 65 20 21 8 1 3,722 4 Latin America and CPF 122 31 36 15 17 7,065 11 Mining 73 14 11 45 (3 ) 2,715 19 Total Segments 638 165 146 212 26 32,072 359 Unallocated 21 (35 ) 32 — — 2,723 (3 ) Timing (8 ) (7 ) — 1 3 46 — Methodology — 23 (27 ) — — (217 ) — Inter-segment Eliminations (1) — — — — — (283 ) — Total $ 651 $ 146 $ 151 $ 213 $ 29 $ 34,341 $ 356 2015 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2015 Capital expenditures North America $ 291 $ 99 $ 66 $ 102 $ (4 ) $ 14,419 $ 292 Europe 69 28 7 18 — 3,758 31 Asia/Pacific 66 17 22 5 2 3,923 2 Latin America and CPF 127 21 37 25 18 7,376 31 Mining 92 4 13 57 7 2,947 — Total Segments 645 169 145 207 23 32,423 356 Unallocated 16 (27 ) 17 — — 1,743 — Timing (8 ) (3 ) — — (1 ) 164 1 Methodology — 14 (18 ) — — (216 ) — Inter-segment Eliminations (1) — — — — — (247 ) — Total $ 653 $ 153 $ 144 $ 207 $ 22 $ 33,867 $ 357 (1) Elimination is primarily related to intercompany loans. Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows: (Millions of dollars) 2016 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2016 Capital expenditures North America $ 927 $ 255 $ 216 $ 350 $ 23 $ 14,709 $ 933 Europe 202 63 25 62 3 3,861 120 Asia/Pacific 190 56 62 21 6 3,722 73 Latin America and CPF 367 76 118 47 59 7,065 35 Mining 232 35 35 145 3 2,715 105 Total Segments 1,918 485 456 625 94 32,072 1,266 Unallocated 60 (99 ) 81 — 1 2,723 — Timing (25 ) (13 ) — 2 1 46 (1 ) Methodology — 66 (79 ) — — (217 ) — Inter-segment Eliminations (1) — — — — — (283 ) — Total $ 1,953 $ 439 $ 458 $ 627 $ 96 $ 34,341 $ 1,265 2015 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2015 Capital expenditures North America $ 865 $ 289 $ 193 $ 303 $ (2 ) $ 14,419 $ 746 Europe 216 85 24 57 — 3,758 83 Asia/Pacific 223 52 80 15 22 3,923 19 Latin America and CPF 400 69 113 81 58 7,376 74 Mining 296 46 42 173 9 2,947 69 Total Segments 2,000 541 452 629 87 32,423 991 Unallocated 48 (75 ) 48 — — 1,743 — Timing (23 ) (17 ) — — 2 164 2 Methodology — 41 (55 ) — — (216 ) — Inter-segment Eliminations (1) — — — — — (247 ) — Total $ 2,025 $ 490 $ 445 $ 629 $ 89 $ 33,867 $ 993 (1) Elimination is primarily related to intercompany loans.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair values of financial instruments	Please refer to the table below for the fair values of our financial instruments. (Millions of dollars) September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 1,051 $ 1,051 $ 1,016 $ 1,016 1 Finance receivables, net (excluding finance leases (1) ) $ 20,435 $ 20,397 $ 20,935 $ 20,925 3 Note 4 Interest rate contracts: In a net receivable position $ 5 $ 5 $ 51 $ 51 2 Note 5 In a net payable position $ (2 ) $ (2 ) $ (4 ) $ (4 ) 2 Note 5 Cross currency contracts: In a receivable position $ 32 $ 32 $ 37 $ 37 2 Note 5 In a payable position $ (15 ) $ (15 ) $ — $ — 2 Note 5 Foreign currency contracts: In a receivable position $ 2 $ 2 $ 3 $ 3 2 Note 5 In a payable position $ (5 ) $ (5 ) $ (6 ) $ (6 ) 2 Note 5 Restricted cash and cash equivalents (2) $ 11 $ 11 $ 18 $ 18 1 Investment in equity securities $ 2 $ 2 $ — $ — 1 Short-term borrowings $ (6,702 ) $ (6,702 ) $ (6,958 ) $ (6,958 ) 1 Long-term debt $ (21,160 ) $ (21,669 ) $ (21,569 ) $ (21,904 ) 2 Guarantees $ — $ — $ — $ — 3 Note 7 (1) As of September 30, 2016 and December 31, 2015 , represents finance leases with a net carrying value of $6.22 billion and $6.45 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Employee Separation Charges (Ta

Employee Separation Charges (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Summary of separation activity	The following table summarizes the 2015 and 2016 separation activity: (Millions of dollars) Liability balance at December 31, 2014 $ — Increase in liability (separation charges) 15 Reduction in liability (payments) (5 ) Liability balance at December 31, 2015 $ 10 Increase in liability (separation charges) — Reduction in liability (payments) (10 ) Liability balance at September 30, 2016 $ —

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (791)	$ (628)	$ (897)	$ (364)
Other comprehensive income/(loss) before reclassifications	(14)	(201)	86	(467)
Amounts reclassified from accumulated other comprehensive (income)/loss	7	1	13	3
Other comprehensive income/(loss)	(7)	(200)	99	(464)
Balance at end of period	(798)	(828)	(798)	(828)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(790)	(626)	(897)	(359)
Other comprehensive income/(loss) before reclassifications	(5)	(200)	102	(467)
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0	0
Other comprehensive income/(loss)	(5)	(200)	102	(467)
Balance at end of period	(795)	(826)	(795)	(826)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	1	(2)	0	(5)
Other comprehensive income/(loss) before reclassifications	(10)	(1)	(15)	0
Amounts reclassified from accumulated other comprehensive (income)/loss	7	1	13	3
Other comprehensive income/(loss)	(3)	0	(2)	3
Balance at end of period	(2)	(2)	(2)	(2)
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(2)	0	0	0
Other comprehensive income/(loss) before reclassifications	1	0	(1)	0
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0	0
Other comprehensive income/(loss)	1	0	(1)	0
Balance at end of period	$ (1)	$ 0	$ (1)	$ 0

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)		$ (3)	$ (11)	$ (10)	$ (25)
Interest		(151)	(144)	(458)	(445)
Reclassifications before tax		146	153	439	490
Tax (provision) benefit		(48)	(44)	(136)	(142)
Total reclassifications from Accumulated other comprehensive income/(loss)	[1]	97	109	299	346
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax		(10)	(1)	(19)	(4)
Tax (provision) benefit		3	0	6	1
Total reclassifications from Accumulated other comprehensive income/(loss)		(7)	(1)	(13)	(3)
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments | Cross currency contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)		(10)	0	(16)	0
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest		$ 0	$ (1)	$ (3)	$ (4)
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail	$ 13,766	$ 13,728
Retail notes receivable	10,492	10,616
Wholesale notes receivable	3,365	3,887
Finance leases and installment sale contracts - Wholesale	155	289
Total gross finance receivables	27,778	28,520
Less: Unearned income	(776)	(794)
Recorded Investment in Finance Receivables	27,002	27,726
Less: Allowance for credit losses	(346)	(338)	$ (401)
Total finance receivables, net	$ 26,656	$ 27,388

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	$ 338	$ 401	$ 346	$ 338
Allowance for credit losses as a percent of net finance receivables			1.28%	1.22%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	338	401
Receivables written off	(118)	(196)
Recoveries on receivables previously written off	25	41
Provision for credit losses	95	117
Adjustment due to sale of receivables	(1)	(2)
Foreign currency translation adjustment	7	(23)
Balance at end of period	346	338
Allowance for Credit Losses
Individually evaluated for impairment			$ 85	$ 65
Collectively evaluated for impairment			261	273
Allowance, Ending Balance	338	401	346	338
Recorded Investment in Finance Receivables
Individually evaluated for impairment			819	601
Collectively evaluated for impairment			26,183	27,125
Recorded Investment in Finance Receivables, Ending Balance			27,002	27,726
Customer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	327	388	333	327
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	327	388
Receivables written off	(118)	(196)
Recoveries on receivables previously written off	25	41
Provision for credit losses	93	119
Adjustment due to sale of receivables	(1)	(2)
Foreign currency translation adjustment	7	(23)
Balance at end of period	333	327
Allowance for Credit Losses
Individually evaluated for impairment			85	65
Collectively evaluated for impairment			248	262
Allowance, Ending Balance	327	388	333	327
Recorded Investment in Finance Receivables
Individually evaluated for impairment			819	601
Collectively evaluated for impairment			19,155	19,431
Recorded Investment in Finance Receivables, Ending Balance			19,974	20,032
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	9	10	11	9
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	9	10
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	2	(1)
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	11	9
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			11	9
Allowance, Ending Balance	9	10	11	9
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,795	5,093
Recorded Investment in Finance Receivables, Ending Balance			4,795	5,093
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	2	3	2	2
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	2	3
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	0	(1)
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	2	2
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			2	2
Allowance, Ending Balance	$ 2	$ 3	2	2
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			2,233	2,601
Recorded Investment in Finance Receivables, Ending Balance			$ 2,233	$ 2,601

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 817	$ 628
Current	26,185	27,098
Recorded Investment in Finance Receivables	27,002	27,726
91 Plus, Still Accruing	75	26
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	189	156
61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	93	70
91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	535	402
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,974	20,032
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	156	87
Current	7,983	8,031
Recorded Investment in Finance Receivables	8,139	8,118
91 Plus, Still Accruing	10	4
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	66	45
Customer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	18	12
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	72	30
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	120	69
Current	2,424	2,358
Recorded Investment in Finance Receivables	2,544	2,427
91 Plus, Still Accruing	47	9
Customer | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	21	18
Customer | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	16	7
Customer | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	83	44
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	60	55
Current	2,057	2,108
Recorded Investment in Finance Receivables	2,117	2,163
91 Plus, Still Accruing	4	6
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	30	22
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	10	12
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	20	21
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	68	75
Current	1,802	1,793
Recorded Investment in Finance Receivables	1,870	1,868
91 Plus, Still Accruing	0	1
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	4	6
Customer | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	1
Customer | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	63	68
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	318	275
Current	1,866	1,998
Recorded Investment in Finance Receivables	2,184	2,273
91 Plus, Still Accruing	0	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	57	45
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	39	31
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	222	199
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	78	36
Current	3,042	3,147
Recorded Investment in Finance Receivables	3,120	3,183
91 Plus, Still Accruing	12	2
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	0
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	5	1
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	72	35
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,795	5,093
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,971	3,387
Recorded Investment in Finance Receivables	2,971	3,387
91 Plus, Still Accruing	0	0
Dealer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	337	330
Recorded Investment in Finance Receivables	337	330
91 Plus, Still Accruing	0	0
Dealer | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	659	611
Recorded Investment in Finance Receivables	659	611
91 Plus, Still Accruing	0	0
Dealer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	7	4
Recorded Investment in Finance Receivables	7	4
91 Plus, Still Accruing	0	0
Dealer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	819	758
Recorded Investment in Finance Receivables	819	758
91 Plus, Still Accruing	0	0
Dealer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2	3
Recorded Investment in Finance Receivables	2	3
91 Plus, Still Accruing	0	0
Dealer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	2,233	2,601
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	15	22
Current	1,292	1,386
Recorded Investment in Finance Receivables	1,307	1,408
91 Plus, Still Accruing	2	1
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	9	16
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	4	5
Caterpillar Purchased Receivables | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	2	1
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	2	8
Current	273	307
Recorded Investment in Finance Receivables	275	315
91 Plus, Still Accruing	0	3
Caterpillar Purchased Receivables | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	4
Caterpillar Purchased Receivables | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	4
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	348	407
Recorded Investment in Finance Receivables	348	407
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	0	0
Recorded Investment in Finance Receivables	0	0
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	300	454
Recorded Investment in Finance Receivables	300	454
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	0	1
Current	3	16
Recorded Investment in Finance Receivables	3	17
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	1
Caterpillar Purchased Receivables | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 0	$ 0

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Receivables [Abstract]
Period after which collection of future income is considered as not probable			120 days
Customer
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	$ 554		$ 554		$ 408
Unpaid Principal Balance With No Allowance Recorded	551		551		407
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	265		265		193
Unpaid Principal Balance With An Allowance Recorded	275		275		191
Related Allowance With An Allowance Recorded	85		85		65
Recorded Investment, Total	819		819		601
Unpaid Principal Balance, Total	826		826		598
Related Allowance, Total	85		85		65
Average Recorded Investment With No Allowance Recorded	504	$ 314	458	$ 326
Interest Income Recognized With No Allowance Recorded	6	2	13	7
Average Recorded Investment With An Allowance Recorded	216	291	197	295
Interest Income Recognized With An Allowance Recorded	1	3	5	8
Average Recorded Investment, Total	720	605	655	621
Interest Income Recognized, Total	7	5	18	15
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	21		21		12
Unpaid Principal Balance With No Allowance Recorded	21		21		12
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	50		50		14
Unpaid Principal Balance With An Allowance Recorded	48		48		13
Related Allowance With An Allowance Recorded	19		19		4
Recorded Investment, Total	71		71		26
Unpaid Principal Balance, Total	69		69		25
Related Allowance, Total	19		19		4
Average Recorded Investment With No Allowance Recorded	24	10	19	12
Interest Income Recognized With No Allowance Recorded	0	1	1	1
Average Recorded Investment With An Allowance Recorded	42	10	28	7
Interest Income Recognized With An Allowance Recorded	0	0	0	0
Average Recorded Investment, Total	66	20	47	19
Interest Income Recognized, Total	0	1	1	1
Customer | Europe
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	49		49		41
Unpaid Principal Balance With No Allowance Recorded	48		48		41
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	9		9		11
Unpaid Principal Balance With An Allowance Recorded	9		9		10
Related Allowance With An Allowance Recorded	5		5		5
Recorded Investment, Total	58		58		52
Unpaid Principal Balance, Total	57		57		51
Related Allowance, Total	5		5		5
Average Recorded Investment With No Allowance Recorded	49	43	45	43
Interest Income Recognized With No Allowance Recorded	1	0	1	0
Average Recorded Investment With An Allowance Recorded	10	15	11	15
Interest Income Recognized With An Allowance Recorded	0	0	0	1
Average Recorded Investment, Total	59	58	56	58
Interest Income Recognized, Total	1	0	1	1
Customer | Asia/Pacific
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	2		2		1
Unpaid Principal Balance With No Allowance Recorded	2		2		1
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	33		33		34
Unpaid Principal Balance With An Allowance Recorded	33		33		34
Related Allowance With An Allowance Recorded	5		5		4
Recorded Investment, Total	35		35		35
Unpaid Principal Balance, Total	35		35		35
Related Allowance, Total	5		5		4
Average Recorded Investment With No Allowance Recorded	1	1	2	2
Interest Income Recognized With No Allowance Recorded	0	0	0	0
Average Recorded Investment With An Allowance Recorded	35	63	34	42
Interest Income Recognized With An Allowance Recorded	0	0	2	1
Average Recorded Investment, Total	36	64	36	44
Interest Income Recognized, Total	0	0	2	1
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	119		119		84
Unpaid Principal Balance With No Allowance Recorded	118		118		84
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	38		38		11
Unpaid Principal Balance With An Allowance Recorded	38		38		11
Related Allowance With An Allowance Recorded	6		6		3
Recorded Investment, Total	157		157		95
Unpaid Principal Balance, Total	156		156		95
Related Allowance, Total	6		6		3
Average Recorded Investment With No Allowance Recorded	90	63	84	80
Interest Income Recognized With No Allowance Recorded	2	0	3	3
Average Recorded Investment With An Allowance Recorded	19	9	15	47
Interest Income Recognized With An Allowance Recorded	0	0	0	1
Average Recorded Investment, Total	109	72	99	127
Interest Income Recognized, Total	2	0	3	4
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	73		73		28
Unpaid Principal Balance With No Allowance Recorded	73		73		28
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	91		91		53
Unpaid Principal Balance With An Allowance Recorded	103		103		53
Related Allowance With An Allowance Recorded	33		33		21
Recorded Investment, Total	164		164		81
Unpaid Principal Balance, Total	176		176		81
Related Allowance, Total	33		33		21
Average Recorded Investment With No Allowance Recorded	58	32	39	32
Interest Income Recognized With No Allowance Recorded	0	0	0	0
Average Recorded Investment With An Allowance Recorded	67	69	59	56
Interest Income Recognized With An Allowance Recorded	1	1	2	2
Average Recorded Investment, Total	125	101	98	88
Interest Income Recognized, Total	1	1	2	2
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	290		290		242
Unpaid Principal Balance With No Allowance Recorded	289		289		241
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	44		44		70
Unpaid Principal Balance With An Allowance Recorded	44		44		70
Related Allowance With An Allowance Recorded	17		17		28
Recorded Investment, Total	334		334		312
Unpaid Principal Balance, Total	333		333		311
Related Allowance, Total	17		17		28
Average Recorded Investment With No Allowance Recorded	282	165	269	157
Interest Income Recognized With No Allowance Recorded	3	1	8	3
Average Recorded Investment With An Allowance Recorded	43	125	50	128
Interest Income Recognized With An Allowance Recorded	0	2	1	3
Average Recorded Investment, Total	325	290	319	285
Interest Income Recognized, Total	3	$ 3	9	$ 6
Dealer
Financing Receivable, Impaired
Recorded Investment, Total	0		0		0
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	$ 0		$ 0		$ 0

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 624	$ 485
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	71	31
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	38	39
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	16	15
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	131	106
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	299	217
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	69	77
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	0	0
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 1	$ 1

Finance Receivables (Details 6)

Finance Receivables (Details 6) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)contracts	Sep. 30, 2015USD ($)contracts	Sep. 30, 2016USD ($)contracts	Sep. 30, 2015USD ($)contracts	Dec. 31, 2015USD ($)
Financing Receivable, Modifications
Remaining commitments	$ 11		$ 11		$ 3
Finance receivables modified as TDRs
Number of Contracts | contracts	352	31	493	78
Pre-TDR Recorded Investment	$ 152	$ 110	$ 387	$ 242
Post-TDR Recorded Investment	$ 118	$ 96	$ 327	$ 225
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	4	5	35	11
Post-TDR Recorded Investment	$ 0	$ 0	$ 4	$ 1
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	2	6	15	10
Pre-TDR Recorded Investment	$ 0	$ 0	$ 16	$ 1
Post-TDR Recorded Investment	$ 0	$ 0	$ 16	$ 1
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	1	5	14	10
Post-TDR Recorded Investment	$ 0	$ 0	$ 3	$ 1
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts | contracts	0	4	3	23
Pre-TDR Recorded Investment	$ 0	$ 0	$ 11	$ 2
Post-TDR Recorded Investment	$ 0	$ 0	$ 8	$ 2
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	1	0	14	0
Post-TDR Recorded Investment	$ 0	$ 0	$ 1	$ 0
Customer | Asia/Pacific
Finance receivables modified as TDRs
Number of Contracts | contracts	4	1	8	21
Pre-TDR Recorded Investment	$ 1	$ 1	$ 4	$ 26
Post-TDR Recorded Investment	$ 1	$ 1	$ 4	$ 26
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts			3	0
Post-TDR Recorded Investment			$ 0	$ 0
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts	1	2	2	2
Pre-TDR Recorded Investment	$ 33	$ 15	$ 43	$ 15
Post-TDR Recorded Investment	$ 30	$ 14	$ 35	$ 14
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	341	10	431	10
Pre-TDR Recorded Investment	$ 105	$ 1	$ 117	$ 1
Post-TDR Recorded Investment	$ 74	$ 2	$ 87	$ 2
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	2	0	4	1
Post-TDR Recorded Investment	$ 0	$ 0	$ 0	$ 0
Customer | Latin America | Amounts related to four customers
Finance receivables modified as TDRs
Number of Contracts | contracts	321
Pre-TDR Recorded Investment	$ 94
Post-TDR Recorded Investment	$ 64
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	4	8	34	12
Pre-TDR Recorded Investment	$ 13	$ 93	$ 196	$ 197
Post-TDR Recorded Investment	$ 13	$ 79	$ 177	$ 180
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	0
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	0

Derivative Financial Instrume34

Derivative Financial Instruments and Risk Management (Details) $ in Millions	3 Months Ended
	Sep. 30, 2016USD ($)
Derivative
Deferred gains on liquidated interest rate contracts	$ 32
Maximum
Derivative
Deferred net gains, interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 1

Derivative Financial Instrume35

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value
Asset Fair Value	$ 39	$ 91
Liability Fair Value	(22)	(10)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	(8)	48
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	5	51
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(2)	(4)
Designated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	4	1
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(15)	0
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	25	33
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	2	3
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(5)	(6)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	$ 28	$ 36

Derivative Financial Instrume36

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Derivative
Derivative instruments, notional amount	$ 2,910	$ 3,540

Derivative Financial Instrume37

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Designated derivatives | Fair value hedges | Interest rate contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ (11)	$ 3	$ (11)	$ (11)
Gains (Losses) on Borrowings	11	(3)	10	10
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(15)		(23)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	(10)		(19)
Recognized in Earnings (Ineffective Portion)	0		0
Designated derivatives | Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	2	(1)	0	1
Designated derivatives | Cash flow hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	0	(1)	(3)	(4)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Designated derivatives | Cash flow hedges | Cross currency contracts
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(17)		(23)
Designated derivatives | Cash flow hedges | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	(10)		(16)
Recognized in Earnings (Ineffective Portion)	0		0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(5)	6	(33)	(18)
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(5)	(2)	(21)	(34)
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 0	$ 8	$ (12)	$ 16

Derivative Financial Instrume38

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Offsetting Assets and Liabilities [Abstract]
Gross Amount of Recognized Assets	$ 39	$ 91
Gross Amounts Offset	0	0
Net Amount of Assets	39	91
Gross Amounts Not Offset	(3)	(5)
Net Amount	36	86
Gross Amount of Recognized Liabilities	(22)	(10)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(22)	(10)
Gross Amounts Not Offset	3	5
Net Amount	$ (19)	$ (5)

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Segment Reporting Information
External Revenues	$ 651	$ 653	$ 1,953	$ 2,025
Profit before income taxes	146	153	439	490
Interest Expense	151	144	458	445
Depreciation on equipment leased to others	213	207	627	629
Provision for credit losses	29	22	96	89
Assets	34,341		34,341		$ 33,867
Capital expenditures	356	357	1,265	993
Operating Segments
Segment Reporting Information
External Revenues	638	645	1,918	2,000
Profit before income taxes	165	169	485	541
Interest Expense	146	145	456	452
Depreciation on equipment leased to others	212	207	625	629
Provision for credit losses	26	23	94	87
Assets	32,072		32,072		32,423
Capital expenditures	359	356	1,266	991
Unallocated
Segment Reporting Information
External Revenues	21	16	60	48
Profit before income taxes	(35)	(27)	(99)	(75)
Interest Expense	32	17	81	48
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	1	0
Assets	2,723		2,723		1,743
Capital expenditures	(3)	0	0	0
Timing
Segment Reporting Information
External Revenues	(8)	(8)	(25)	(23)
Profit before income taxes	(7)	(3)	(13)	(17)
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	1	0	2	0
Provision for credit losses	3	(1)	1	2
Assets	46		46		164
Capital expenditures	0	1	(1)	2
Methodology
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	23	14	66	41
Interest Expense	(27)	(18)	(79)	(55)
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	(217)		(217)		(216)
Capital expenditures	0	0	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	0	0	0	0
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	(283)		(283)		(247)
Capital expenditures	0	0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	310	291	927	865
Profit before income taxes	79	99	255	289
Interest Expense	70	66	216	193
Depreciation on equipment leased to others	123	102	350	303
Provision for credit losses	10	(4)	23	(2)
Assets	14,709		14,709		14,419
Capital expenditures	281	292	933	746
Europe | Operating Segments
Segment Reporting Information
External Revenues	68	69	202	216
Profit before income taxes	21	28	63	85
Interest Expense	8	7	25	24
Depreciation on equipment leased to others	21	18	62	57
Provision for credit losses	1	0	3	0
Assets	3,861		3,861		3,758
Capital expenditures	44	31	120	83
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	65	66	190	223
Profit before income taxes	20	17	56	52
Interest Expense	21	22	62	80
Depreciation on equipment leased to others	8	5	21	15
Provision for credit losses	1	2	6	22
Assets	3,722		3,722		3,923
Capital expenditures	4	2	73	19
Latin America and CPF | Operating Segments
Segment Reporting Information
External Revenues	122	127	367	400
Profit before income taxes	31	21	76	69
Interest Expense	36	37	118	113
Depreciation on equipment leased to others	15	25	47	81
Provision for credit losses	17	18	59	58
Assets	7,065		7,065		7,376
Capital expenditures	11	31	35	74
Mining | Operating Segments
Segment Reporting Information
External Revenues	73	92	232	296
Profit before income taxes	14	4	35	46
Interest Expense	11	13	35	42
Depreciation on equipment leased to others	45	57	145	173
Provision for credit losses	(3)	7	3	9
Assets	2,715		2,715		$ 2,947
Capital expenditures	$ 19	$ 0	$ 105	$ 69

Guarantees (Details)

Guarantees (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 42	$ 39
SPC's assets in Consolidated Statements of Financial Position	1,150	1,210
SPC's liabilities in Consolidated Statements of Financial Position	1,150	1,210
Maximum
Guarantor Obligations
Related liability	$ 1	$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Level 1
Assets
Investment in equity securities	$ 2	$ 0
Recurring basis | Level 1
Assets
Investment in equity securities	2
Recurring basis | Level 2
Assets
Derivative financial instruments, net	$ 17	$ 81

Fair Value Measurements (Deta42

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Fair value of impaired loans	$ 122	$ 91

Fair Value Measurements (Deta43

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	$ (6,702)	$ (6,958)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	1,051	1,016
Restricted cash and cash equivalents	11	18
Investment in equity securities	2	0
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(6,702)	(6,958)
Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest rate contracts, in a net receivable position	5	51
Foreign currency contracts, in a receivable position	2	3
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a net payable position	(2)	(4)
Foreign currency contracts, in a payable position	(5)	(6)
Long-term debt	(21,669)	(21,904)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,397	20,925
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Guarantees	0	0
Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	1,051	1,016
Finance receivables, net (excluding finance leases)	20,435	20,935
Interest rate contracts, in a net receivable position	5	51
Foreign currency contracts, in a receivable position	2	3
Restricted cash and cash equivalents	11	18
Investment in equity securities	2	0
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a net payable position	(2)	(4)
Foreign currency contracts, in a payable position	(5)	(6)
Short-term borrowings	(6,702)	(6,958)
Long-term debt	(21,160)	(21,569)
Guarantees	0	0
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases	6,220	6,450
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign currency contracts, in a receivable position	32	37
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign currency contracts, in a payable position	(15)	0
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign currency contracts, in a receivable position	32	37
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign currency contracts, in a payable position	$ (15)	$ 0

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Estimated annual tax rate	31.00%	29.00%

Employee Separation Charges (De

Employee Separation Charges (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Separation charges	$ 0	$ 15
Employee Separation Charges
Liability balance at beginning of period	10	0
Increase in liability (separation charges)	0	15
Reduction in liability (payments)	(10)	(5)
Liability balance at end of period	$ 0	$ 10