Caterpillar Financial Services 10-Q 3 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
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	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Revenues:
Retail finance		$ 308	$ 298
Operating lease		245	245
Wholesale finance		65	69
Other, net		44	31
Total revenues		662	643
Expenses:
Interest		162	155
Depreciation on equipment leased to others		205	203
General, operating and administrative		97	98
Provision for credit losses		16	29
Other		11	10
Total expenses		491	495
Other income (expense)		(4)	(3)
Profit before income taxes		167	145
Provision for income taxes		50	44
Profit of consolidated companies		117	101
Less: Profit attributable to noncontrolling interests		2	1
Profit	[1]	$ 115	$ 100
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 117	$ 101
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	80	173
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	(12)	(1)
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	14	2
Total Other comprehensive income (loss), net of tax	82	174
Comprehensive income (loss)	199	275
Less: Comprehensive income (loss) attributable to the noncontrolling interests	2	2
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 197	$ 273

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ 10	$ 37
Derivative financial instruments:
Gains (losses) deferred, tax	6	0
(Gains) losses reclassified to earnings, tax	$ (7)	$ 0

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 1,104	$ 1,795
Finance receivables, net	26,685	26,212
Notes receivable from Caterpillar	2,071	530
Equipment on operating leases, less accumulated depreciation	3,552	3,708
Deferred and refundable income taxes	143	119
Other assets	1,177	1,251
Total assets	34,732	33,615
Liabilities and shareholder's equity:
Payable to dealers and others	142	140
Payable to Caterpillar - other	56	49
Accrued expenses	187	172
Income taxes payable	94	32
Payable to Caterpillar - borrowings	1,593	1,637
Short-term borrowings	7,385	7,094
Current maturities of long-term debt	6,231	6,155
Long-term debt	14,921	14,382
Deferred income taxes and other liabilities	939	969
Total liabilities	31,548	30,630
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	3,223	3,108
Accumulated other comprehensive income/(loss)	(913)	(995)
Noncontrolling interests	127	125
Total shareholder's equity	3,184	2,985
Total liabilities and shareholder's equity	$ 34,732	$ 33,615

Consolidated Statements of Fin6

Consolidated Statements of Financial Position (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Shareholder's 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 Shareholder'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, 2015	$ 2,975	$ 745	$ 2	$ 2,999	$ (897)	$ 126
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	101			100		1
Foreign currency translation, net of tax	173				172	1
Derivative financial instruments, net of tax	1				1
Balance at Mar. 31, 2016	3,250	745	2	3,099	(724)	128
Balance at Dec. 31, 2016	2,985	745	2	3,108	(995)	125
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	117			115		2
Foreign currency translation, net of tax	80				80	0
Derivative financial instruments, net of tax	2				2
Balance at Mar. 31, 2017	$ 3,184	$ 745	$ 2	$ 3,223	$ (913)	$ 127

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Profit of consolidated companies	$ 117	$ 101
Adjustments for non-cash items:
Depreciation and amortization	208	206
Amortization of receivables purchase discount	(54)	(55)
Provision for credit losses	16	29
Other, net	(10)	39
Changes in assets and liabilities:
Receivables from others	65	4
Other receivables/payables with Caterpillar	0	(8)
Payable to dealers and others	(2)	8
Accrued interest payable	3	(4)
Accrued expenses and other liabilities, net	(32)	(33)
Income taxes payable	43	17
Net cash provided by operating activities	354	304
Cash flows from investing activities:
Capital expenditures for equipment on operating leases and other capital expenditures	(271)	(297)
Proceeds from disposals of equipment	216	152
Additions to finance receivables	(2,535)	(2,662)
Collections of finance receivables	2,788	2,848
Net changes in Caterpillar purchased receivables	(459)	(229)
Proceeds from sales of receivables	17	10
Net change in variable lending to Caterpillar	(1,560)	(1,000)
Additions to other notes receivable with Caterpillar	0	(55)
Collections on other notes receivable with Caterpillar	18	14
Restricted cash and cash equivalents activity, net	1	5
Settlements of derivatives	10	(12)
Net cash provided by (used for) investing activities	(1,775)	(1,226)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	(1)	674
Proceeds from borrowings with Caterpillar	0	253
Payments on borrowings with Caterpillar	(49)	0
Proceeds from debt issued (original maturities greater than three months)	2,355	1,210
Payments on debt issued (original maturities greater than three months)	(1,973)	(1,703)
Short-term borrowings, net (original maturities three months or less)	392	482
Net cash provided by (used for) financing activities	724	916
Effect of exchange rate changes on cash and cash equivalents	6	13
Increase/(decrease) in cash and cash equivalents	(691)	7
Cash and cash equivalents at beginning of year	1,795	1,016
Cash and cash equivalents at end of period	$ 1,104	$ 1,023

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016 , (b) the consolidated comprehensive income for the three months ended March 31, 2017 and 2016 , (c) the consolidated financial position as of March 31, 2017 and December 31, 2016 , (d) the consolidated changes in shareholder's equity for the three months ended March 31, 2017 and 2016 and (e) the consolidated cash flows for the three months ended March 31, 2017 and 2016 . 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. Significant estimates include residual values for leased assets, 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, 2016 ( 2016 Form 10-K) filed with the SEC on February 15, 2017. The December 31, 2016 financial position data included herein was derived from the audited consolidated financial statements included in the 2016 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 and dealers 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)	3 Months Ended
	Mar. 31, 2017
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 Shareholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Total Three Months Ended March 31, 2016 Balance at December 31, 2015 $ (897 ) $ — $ (897 ) Other comprehensive income/(loss) before reclassifications 172 (1 ) 171 Amounts reclassified from accumulated other comprehensive (income)/loss — 2 2 Other comprehensive income/(loss) 172 1 173 Balance at March 31, 2016 $ (725 ) $ 1 $ (724 ) Three Months Ended March 31, 2017 Balance at December 31, 2016 $ (994 ) $ (1 ) $ (995 ) Other comprehensive income/(loss) before reclassifications 80 (12 ) 68 Amounts reclassified from accumulated other comprehensive (income)/loss — 14 14 Other comprehensive income/(loss) 80 2 82 Balance at March 31, 2017 $ (914 ) $ 1 $ (913 ) 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 Classification of income (expense) 2017 2016 Cross currency contracts Other income (expense) $ (22 ) $ — Interest rate contracts Interest expense 1 (2 ) Reclassifications before tax (21 ) (2 ) Tax (provision) benefit 7 — Total reclassifications from Accumulated other comprehensive income/(loss) $ (14 ) $ (2 )

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
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 Shareholder'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. 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. Classification of restricted cash – In November 2016, the FASB issued accounting guidance related to the presentation and classification of changes in restricted cash on the statement of cash flows where diversity in practice exists. The new standard is required to be applied with a retrospective approach. 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	3 Months Ended
	Mar. 31, 2017
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) March 31, December 31, Finance leases and installment sale contracts – Retail (1) $ 13,715 $ 13,565 Retail notes receivable 10,107 10,195 Wholesale notes receivable 3,897 3,457 Finance leases and installment sale contracts – Wholesale 92 103 27,811 27,320 Less: Unearned income (780 ) (765 ) Recorded investment in finance receivables 27,031 26,555 Less: Allowance for credit losses (346 ) (343 ) Total finance receivables, net $ 26,685 $ 26,212 (1) Includes $18 million and $4 million of finance receivables classified as held for sale as of March 31, 2017 and December 31, 2016, respectively. 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 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 March 31, 2017 was $346 million or 1.28 percent of our recorded investment in finance receivables compared with $343 million or 1.29 percent as of December 31, 2016 . An analysis of the allowance for credit losses was as follows: (Millions of dollars) March 31, 2017 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 331 $ 10 $ 2 $ 343 Receivables written off (24 ) — — (24 ) Recoveries on receivables previously written off 9 — — 9 Provision for credit losses 12 2 1 15 Adjustment due to sale of receivables — — — — Foreign currency translation adjustment 3 — — 3 Balance at end of period $ 331 $ 12 $ 3 $ 346 Individually evaluated for impairment $ 98 $ — $ — $ 98 Collectively evaluated for impairment 233 12 3 248 Ending Balance $ 331 $ 12 $ 3 $ 346 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 858 $ — $ — $ 858 Collectively evaluated for impairment 18,673 4,539 2,961 26,173 Ending Balance $ 19,531 $ 4,539 $ 2,961 $ 27,031 (Millions of dollars) December 31, 2016 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 327 $ 9 $ 2 $ 338 Receivables written off (158 ) — — (158 ) Recoveries on receivables previously written off 35 — — 35 Provision for credit losses 132 1 — 133 Adjustment due to sale of receivables (8 ) — — (8 ) Foreign currency translation adjustment 3 — — 3 Balance at end of year $ 331 $ 10 $ 2 $ 343 Individually evaluated for impairment $ 85 $ — $ — $ 85 Collectively evaluated for impairment 246 10 2 258 Ending Balance $ 331 $ 10 $ 2 $ 343 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 786 $ — $ — $ 786 Collectively evaluated for impairment 18,859 4,479 2,431 25,769 Ending Balance $ 19,645 $ 4,479 $ 2,431 $ 26,555 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 recorded investment in finance receivable past due when any installment is over 30 days past due. The tables below summarize our recorded investment in finance receivables by aging category. (Millions of dollars) March 31, 2017 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 $ 56 $ 17 $ 61 $ 134 $ 7,960 $ 8,094 $ 7 Europe 23 18 46 87 2,361 2,448 10 Asia/Pacific 22 9 15 46 2,050 2,096 5 Mining 13 5 53 71 1,818 1,889 — Latin America 67 47 215 329 1,767 2,096 — Caterpillar Power Finance 30 7 66 103 2,805 2,908 6 Dealer North America — — — — 2,793 2,793 — Europe — — — — 307 307 — Asia/Pacific — — — — 603 603 — Mining — — — — 6 6 — Latin America — — — — 828 828 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 7 7 2 16 1,703 1,719 2 Europe 1 — 1 2 343 345 — Asia/Pacific 1 — — 1 510 511 — Mining — — — — — — — Latin America — — — — 382 382 — Caterpillar Power Finance — — — — 4 4 — Total $ 220 $ 110 $ 459 $ 789 $ 26,242 $ 27,031 $ 30 (Millions of dollars) December 31, 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 $ 50 $ 16 $ 59 $ 125 $ 8,051 $ 8,176 $ 5 Europe 16 12 39 67 2,388 2,455 6 Asia/Pacific 18 7 15 40 1,944 1,984 4 Mining 3 2 63 68 1,756 1,824 2 Latin America 40 33 214 287 1,808 2,095 — Caterpillar Power Finance 11 9 73 93 3,018 3,111 1 Dealer North America — — — — 2,705 2,705 — Europe — — — — 336 336 — Asia/Pacific — — — — 582 582 — Mining — — — — 6 6 — Latin America — — — — 848 848 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 11 3 1 15 1,303 1,318 1 Europe — — 1 1 268 269 — Asia/Pacific — — — — 475 475 — Mining — — — — — — — Latin America — — — — 366 366 — Caterpillar Power Finance — — — — 3 3 — Total $ 149 $ 82 $ 465 $ 696 $ 25,859 $ 26,555 $ 19 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 March 31, 2017 and December 31, 2016 , 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 March 31, 2017 As of December 31, 2016 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 11 $ 11 $ — $ 10 $ 10 $ — Europe 48 47 — 49 48 — Asia/Pacific 30 29 — 3 2 — Mining 133 132 — 129 129 — Latin America 67 67 — 68 68 — Caterpillar Power Finance 289 289 — 271 271 — Total $ 578 $ 575 $ — $ 530 $ 528 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 56 $ 54 $ 22 $ 61 $ 60 $ 22 Europe 4 4 2 7 7 3 Asia/Pacific 31 31 4 50 50 8 Mining — — — — — — Latin America 110 121 39 93 104 34 Caterpillar Power Finance 79 78 31 45 44 18 Total $ 280 $ 288 $ 98 $ 256 $ 265 $ 85 Total Impaired Finance Receivables North America $ 67 $ 65 $ 22 $ 71 $ 70 $ 22 Europe 52 51 2 56 55 3 Asia/Pacific 61 60 4 53 52 8 Mining 133 132 — 129 129 — Latin America 177 188 39 161 172 34 Caterpillar Power Finance 368 367 31 316 315 18 Total $ 858 $ 863 $ 98 $ 786 $ 793 $ 85 (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 $ 10 $ — $ 14 $ — Europe 49 — 40 — Asia/Pacific 9 — 2 — Mining 128 1 81 1 Latin America 72 1 27 — Caterpillar Power Finance 267 3 253 3 Total $ 535 $ 5 $ 417 $ 4 Impaired Finance Receivables With An Allowance Recorded North America $ 61 $ — $ 14 $ — Europe 6 — 12 — Asia/Pacific 45 1 33 1 Mining — — 11 — Latin America 96 1 51 1 Caterpillar Power Finance 63 1 59 — Total $ 271 $ 3 $ 180 $ 2 Total Impaired Finance Receivables North America $ 71 $ — $ 28 $ — Europe 55 — 52 — Asia/Pacific 54 1 35 1 Mining 128 1 92 1 Latin America 168 2 78 1 Caterpillar Power Finance 330 4 312 3 Total $ 806 $ 8 $ 597 $ 6 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 March 31, 2017 and December 31, 2016 , there were no finance receivables on non-accrual status for the Dealer portfolio segment. As of March 31, 2017 and December 31, 2016 , there was $1 million in recorded investment 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) March 31, December 31, North America $ 66 $ 66 Europe 37 35 Asia/Pacific 15 12 Mining 56 69 Latin America 308 307 Caterpillar Power Finance 70 90 Total $ 552 $ 579 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 March 31, 2017, there were no additional funds committed to lend to a borrower whose terms have been modified in a TDR. As of December 31, 2016 , there were $11 million 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 months ended March 31, 2017 and 2016 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Our recorded investment in 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 9 $ 1 $ 1 11 $ 10 $ 10 Europe 1 — — — — — Asia/Pacific 5 39 30 4 3 3 Mining 2 57 56 — — — Latin America 7 2 2 2 — — Caterpillar Power Finance 6 25 24 4 39 27 Total 30 $ 124 $ 113 21 $ 52 $ 40

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 , $2 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 that resulted in deferred gains at the time of liquidation. The deferred gains associated with these interest rate contracts are included in Long-term debt in the Consolidated Statements of Financial Position and are being amortized to Interest expense over the remaining term of the previously designated hedged item. 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 March 31, December 31, Designated derivatives Interest rate contracts Other assets $ 3 $ 4 Interest rate contracts Accrued expenses (1 ) (1 ) Cross currency contracts Other assets 24 29 Cross currency contracts Accrued expenses (16 ) (3 ) $ 10 $ 29 Undesignated derivatives Foreign exchange contracts Other assets $ 3 $ 12 Foreign exchange contracts Accrued expenses (10 ) (4 ) Cross currency contracts Other assets 25 27 $ 18 $ 35 The total notional amount of our derivative instruments was $3.01 billion and $2.63 billion as of March 31, 2017 and December 31, 2016 , 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) $ (1 ) $ 1 $ 3 $ (4 ) Cash Flow Hedges (Millions of dollars) Three Months Ended March 31, 2017 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 $ 1 $ — Cross currency contracts (18 ) Other income (expense) (22 ) — $ (18 ) $ (21 ) $ — Three Months Ended March 31, 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 $ (1 ) Interest expense $ (2 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended March 31, Classification 2017 2016 Foreign exchange contracts Other income (expense) $ (4 ) $ 1 Cross currency contracts Other income (expense) (3 ) (5 ) $ (7 ) $ (4 ) 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 March 31, 2017 and December 31, 2016 , 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) March 31, December 31, Derivative Assets Gross Amount of Recognized Assets $ 55 $ 72 Gross Amounts Offset — — Net Amount of Assets (1) 55 72 Gross Amounts Not Offset (5 ) (7 ) Net Amount $ 50 $ 65 Derivative Liabilities Gross Amount of Recognized Liabilities $ (27 ) $ (8 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (27 ) (8 ) Gross Amounts Not Offset 5 7 Net Amount $ (22 ) $ (1 ) (1) As presented in the Consolidated Statements of Financial Position.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
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 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 March 31 was as follows: (Millions of dollars) 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at March 31, 2017 Capital expenditures North America $ 320 $ 82 $ 73 $ 129 $ 7 $ 14,803 $ 182 Europe 65 20 9 20 1 3,807 18 Asia/Pacific 63 26 20 7 (4 ) 3,802 2 Latin America and CPF 121 35 42 12 9 6,829 33 Mining 70 15 12 37 — 2,639 35 Total Segments 639 178 156 205 13 31,880 270 Unallocated 31 (37 ) 42 — — 3,267 1 Timing (8 ) (6 ) — — 3 23 — Methodology — 32 (36 ) — — (199 ) — Inter-segment Eliminations (1) — — — — — (239 ) — Total $ 662 $ 167 $ 162 $ 205 $ 16 $ 34,732 $ 271 2016 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2016 Capital expenditures North America $ 300 $ 82 $ 73 $ 109 $ 9 $ 14,925 $ 172 Europe 66 20 8 20 2 3,834 38 Asia/Pacific 61 21 20 6 (1 ) 3,620 10 Latin America and CPF 125 27 42 17 17 7,270 17 Mining 81 10 13 51 4 2,734 58 Total Segments 633 160 156 203 31 32,383 295 Unallocated 18 (32 ) 24 — — 1,688 1 Timing (8 ) (4 ) — — (2 ) 27 1 Methodology — 21 (25 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 643 $ 145 $ 155 $ 203 $ 29 $ 33,615 $ 297 (1) Elimination is primarily related to intercompany loans.

Guarantees

Guarantees	3 Months Ended
	Mar. 31, 2017
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. We also provide residual value guarantees to third-party lenders associated with machinery leased to customers. These guarantees have varying terms. 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 March 31, 2017 and December 31, 2016 , the related recorded liability was less than $1 million and $1 million , respectively. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was $56 million and $43 million at March 31, 2017 and December 31, 2016 , 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 March 31, 2017 and December 31, 2016 , the SPC’s assets of $1.15 billion and $1.09 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 $1.09 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	3 Months Ended
	Mar. 31, 2017
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 $28 million and $64 million as of March 31, 2017 and December 31, 2016 , respectively. 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 $127 million and $137 million as of March 31, 2017 and December 31, 2016 , 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) March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 1,104 $ 1,104 $ 1,795 $ 1,795 1 Finance receivables, net (excluding finance leases (1) ) $ 20,384 $ 20,332 $ 20,101 $ 19,949 3 Note 4 Interest rate contracts: In a net receivable position $ 3 $ 3 $ 4 $ 4 2 Note 5 In a net payable position $ (1 ) $ (1 ) $ (1 ) $ (1 ) 2 Note 5 Cross currency contracts: In a receivable position $ 49 $ 49 $ 56 $ 56 2 Note 5 In a payable position $ (16 ) $ (16 ) $ (3 ) $ (3 ) 2 Note 5 Foreign currency contracts: In a receivable position $ 3 $ 3 $ 12 $ 12 2 Note 5 In a payable position $ (10 ) $ (10 ) $ (4 ) $ (4 ) 2 Note 5 Restricted cash and cash equivalents (2) $ 28 $ 28 $ 29 $ 29 1 Short-term borrowings $ (7,385 ) $ (7,385 ) $ (7,094 ) $ (7,094 ) 1 Long-term debt $ (21,152 ) $ (21,341 ) $ (20,537 ) $ (20,724 ) 2 Guarantees $ — $ — $ (1 ) $ (1 ) 3 Note 7 (1) As of March 31, 2017 and December 31, 2016 , represents finance leases with a net carrying value of $6.30 billion and $6.11 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2017
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	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Provision for income taxes reflects an estimated annual tax rate of 30 percent in the first quarter of both 2017 and 2016 .

Accumulated Other Comprehensi19

Accumulated Other Comprehensive Income/(Loss) (Tables)	3 Months Ended
	Mar. 31, 2017
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 Shareholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Total Three Months Ended March 31, 2016 Balance at December 31, 2015 $ (897 ) $ — $ (897 ) Other comprehensive income/(loss) before reclassifications 172 (1 ) 171 Amounts reclassified from accumulated other comprehensive (income)/loss — 2 2 Other comprehensive income/(loss) 172 1 173 Balance at March 31, 2016 $ (725 ) $ 1 $ (724 ) Three Months Ended March 31, 2017 Balance at December 31, 2016 $ (994 ) $ (1 ) $ (995 ) Other comprehensive income/(loss) before reclassifications 80 (12 ) 68 Amounts reclassified from accumulated other comprehensive (income)/loss — 14 14 Other comprehensive income/(loss) 80 2 82 Balance at March 31, 2017 $ (914 ) $ 1 $ (913 )
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 Classification of income (expense) 2017 2016 Cross currency contracts Other income (expense) $ (22 ) $ — Interest rate contracts Interest expense 1 (2 ) Reclassifications before tax (21 ) (2 ) Tax (provision) benefit 7 — Total reclassifications from Accumulated other comprehensive income/(loss) $ (14 ) $ (2 )

Finance Receivables (Tables)

Finance Receivables (Tables)	3 Months Ended
	Mar. 31, 2017
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) March 31, December 31, Finance leases and installment sale contracts – Retail (1) $ 13,715 $ 13,565 Retail notes receivable 10,107 10,195 Wholesale notes receivable 3,897 3,457 Finance leases and installment sale contracts – Wholesale 92 103 27,811 27,320 Less: Unearned income (780 ) (765 ) Recorded investment in finance receivables 27,031 26,555 Less: Allowance for credit losses (346 ) (343 ) Total finance receivables, net $ 26,685 $ 26,212 (1) Includes $18 million and $4 million of finance receivables classified as held for sale as of March 31, 2017 and December 31, 2016, respectively.
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) March 31, 2017 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 331 $ 10 $ 2 $ 343 Receivables written off (24 ) — — (24 ) Recoveries on receivables previously written off 9 — — 9 Provision for credit losses 12 2 1 15 Adjustment due to sale of receivables — — — — Foreign currency translation adjustment 3 — — 3 Balance at end of period $ 331 $ 12 $ 3 $ 346 Individually evaluated for impairment $ 98 $ — $ — $ 98 Collectively evaluated for impairment 233 12 3 248 Ending Balance $ 331 $ 12 $ 3 $ 346 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 858 $ — $ — $ 858 Collectively evaluated for impairment 18,673 4,539 2,961 26,173 Ending Balance $ 19,531 $ 4,539 $ 2,961 $ 27,031 (Millions of dollars) December 31, 2016 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 327 $ 9 $ 2 $ 338 Receivables written off (158 ) — — (158 ) Recoveries on receivables previously written off 35 — — 35 Provision for credit losses 132 1 — 133 Adjustment due to sale of receivables (8 ) — — (8 ) Foreign currency translation adjustment 3 — — 3 Balance at end of year $ 331 $ 10 $ 2 $ 343 Individually evaluated for impairment $ 85 $ — $ — $ 85 Collectively evaluated for impairment 246 10 2 258 Ending Balance $ 331 $ 10 $ 2 $ 343 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 786 $ — $ — $ 786 Collectively evaluated for impairment 18,859 4,479 2,431 25,769 Ending Balance $ 19,645 $ 4,479 $ 2,431 $ 26,555
Aging related to finance receivables	The tables below summarize our recorded investment in finance receivables by aging category. (Millions of dollars) March 31, 2017 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 $ 56 $ 17 $ 61 $ 134 $ 7,960 $ 8,094 $ 7 Europe 23 18 46 87 2,361 2,448 10 Asia/Pacific 22 9 15 46 2,050 2,096 5 Mining 13 5 53 71 1,818 1,889 — Latin America 67 47 215 329 1,767 2,096 — Caterpillar Power Finance 30 7 66 103 2,805 2,908 6 Dealer North America — — — — 2,793 2,793 — Europe — — — — 307 307 — Asia/Pacific — — — — 603 603 — Mining — — — — 6 6 — Latin America — — — — 828 828 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 7 7 2 16 1,703 1,719 2 Europe 1 — 1 2 343 345 — Asia/Pacific 1 — — 1 510 511 — Mining — — — — — — — Latin America — — — — 382 382 — Caterpillar Power Finance — — — — 4 4 — Total $ 220 $ 110 $ 459 $ 789 $ 26,242 $ 27,031 $ 30 (Millions of dollars) December 31, 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 $ 50 $ 16 $ 59 $ 125 $ 8,051 $ 8,176 $ 5 Europe 16 12 39 67 2,388 2,455 6 Asia/Pacific 18 7 15 40 1,944 1,984 4 Mining 3 2 63 68 1,756 1,824 2 Latin America 40 33 214 287 1,808 2,095 — Caterpillar Power Finance 11 9 73 93 3,018 3,111 1 Dealer North America — — — — 2,705 2,705 — Europe — — — — 336 336 — Asia/Pacific — — — — 582 582 — Mining — — — — 6 6 — Latin America — — — — 848 848 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 11 3 1 15 1,303 1,318 1 Europe — — 1 1 268 269 — Asia/Pacific — — — — 475 475 — Mining — — — — — — — Latin America — — — — 366 366 — Caterpillar Power Finance — — — — 3 3 — Total $ 149 $ 82 $ 465 $ 696 $ 25,859 $ 26,555 $ 19
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 March 31, 2017 As of December 31, 2016 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 11 $ 11 $ — $ 10 $ 10 $ — Europe 48 47 — 49 48 — Asia/Pacific 30 29 — 3 2 — Mining 133 132 — 129 129 — Latin America 67 67 — 68 68 — Caterpillar Power Finance 289 289 — 271 271 — Total $ 578 $ 575 $ — $ 530 $ 528 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 56 $ 54 $ 22 $ 61 $ 60 $ 22 Europe 4 4 2 7 7 3 Asia/Pacific 31 31 4 50 50 8 Mining — — — — — — Latin America 110 121 39 93 104 34 Caterpillar Power Finance 79 78 31 45 44 18 Total $ 280 $ 288 $ 98 $ 256 $ 265 $ 85 Total Impaired Finance Receivables North America $ 67 $ 65 $ 22 $ 71 $ 70 $ 22 Europe 52 51 2 56 55 3 Asia/Pacific 61 60 4 53 52 8 Mining 133 132 — 129 129 — Latin America 177 188 39 161 172 34 Caterpillar Power Finance 368 367 31 316 315 18 Total $ 858 $ 863 $ 98 $ 786 $ 793 $ 85 (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 $ 10 $ — $ 14 $ — Europe 49 — 40 — Asia/Pacific 9 — 2 — Mining 128 1 81 1 Latin America 72 1 27 — Caterpillar Power Finance 267 3 253 3 Total $ 535 $ 5 $ 417 $ 4 Impaired Finance Receivables With An Allowance Recorded North America $ 61 $ — $ 14 $ — Europe 6 — 12 — Asia/Pacific 45 1 33 1 Mining — — 11 — Latin America 96 1 51 1 Caterpillar Power Finance 63 1 59 — Total $ 271 $ 3 $ 180 $ 2 Total Impaired Finance Receivables North America $ 71 $ — $ 28 $ — Europe 55 — 52 — Asia/Pacific 54 1 35 1 Mining 128 1 92 1 Latin America 168 2 78 1 Caterpillar Power Finance 330 4 312 3 Total $ 806 $ 8 $ 597 $ 6
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) March 31, December 31, North America $ 66 $ 66 Europe 37 35 Asia/Pacific 15 12 Mining 56 69 Latin America 308 307 Caterpillar Power Finance 70 90 Total $ 552 $ 579
Finance receivables modified as TDRs	Our recorded investment in 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 9 $ 1 $ 1 11 $ 10 $ 10 Europe 1 — — — — — Asia/Pacific 5 39 30 4 3 3 Mining 2 57 56 — — — Latin America 7 2 2 2 — — Caterpillar Power Finance 6 25 24 4 39 27 Total 30 $ 124 $ 113 21 $ 52 $ 40

Derivative Financial Instrume21

Derivative Financial Instruments and Risk Management (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, December 31, Designated derivatives Interest rate contracts Other assets $ 3 $ 4 Interest rate contracts Accrued expenses (1 ) (1 ) Cross currency contracts Other assets 24 29 Cross currency contracts Accrued expenses (16 ) (3 ) $ 10 $ 29 Undesignated derivatives Foreign exchange contracts Other assets $ 3 $ 12 Foreign exchange contracts Accrued expenses (10 ) (4 ) Cross currency contracts Other assets 25 27 $ 18 $ 35
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) $ (1 ) $ 1 $ 3 $ (4 )
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 March 31, 2017 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 $ 1 $ — Cross currency contracts (18 ) Other income (expense) (22 ) — $ (18 ) $ (21 ) $ — Three Months Ended March 31, 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 $ (1 ) Interest expense $ (2 ) $ —
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 March 31, Classification 2017 2016 Foreign exchange contracts Other income (expense) $ (4 ) $ 1 Cross currency contracts Other income (expense) (3 ) (5 ) $ (7 ) $ (4 )
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) March 31, December 31, Derivative Assets Gross Amount of Recognized Assets $ 55 $ 72 Gross Amounts Offset — — Net Amount of Assets (1) 55 72 Gross Amounts Not Offset (5 ) (7 ) Net Amount $ 50 $ 65 Derivative Liabilities Gross Amount of Recognized Liabilities $ (27 ) $ (8 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (27 ) (8 ) Gross Amounts Not Offset 5 7 Net Amount $ (22 ) $ (1 ) (1) As presented in the Consolidated Statements of Financial Position.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the three months ended March 31 was as follows: (Millions of dollars) 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at March 31, 2017 Capital expenditures North America $ 320 $ 82 $ 73 $ 129 $ 7 $ 14,803 $ 182 Europe 65 20 9 20 1 3,807 18 Asia/Pacific 63 26 20 7 (4 ) 3,802 2 Latin America and CPF 121 35 42 12 9 6,829 33 Mining 70 15 12 37 — 2,639 35 Total Segments 639 178 156 205 13 31,880 270 Unallocated 31 (37 ) 42 — — 3,267 1 Timing (8 ) (6 ) — — 3 23 — Methodology — 32 (36 ) — — (199 ) — Inter-segment Eliminations (1) — — — — — (239 ) — Total $ 662 $ 167 $ 162 $ 205 $ 16 $ 34,732 $ 271 2016 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2016 Capital expenditures North America $ 300 $ 82 $ 73 $ 109 $ 9 $ 14,925 $ 172 Europe 66 20 8 20 2 3,834 38 Asia/Pacific 61 21 20 6 (1 ) 3,620 10 Latin America and CPF 125 27 42 17 17 7,270 17 Mining 81 10 13 51 4 2,734 58 Total Segments 633 160 156 203 31 32,383 295 Unallocated 18 (32 ) 24 — — 1,688 1 Timing (8 ) (4 ) — — (2 ) 27 1 Methodology — 21 (25 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 643 $ 145 $ 155 $ 203 $ 29 $ 33,615 $ 297 (1) Elimination is primarily related to intercompany loans.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
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) March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 1,104 $ 1,104 $ 1,795 $ 1,795 1 Finance receivables, net (excluding finance leases (1) ) $ 20,384 $ 20,332 $ 20,101 $ 19,949 3 Note 4 Interest rate contracts: In a net receivable position $ 3 $ 3 $ 4 $ 4 2 Note 5 In a net payable position $ (1 ) $ (1 ) $ (1 ) $ (1 ) 2 Note 5 Cross currency contracts: In a receivable position $ 49 $ 49 $ 56 $ 56 2 Note 5 In a payable position $ (16 ) $ (16 ) $ (3 ) $ (3 ) 2 Note 5 Foreign currency contracts: In a receivable position $ 3 $ 3 $ 12 $ 12 2 Note 5 In a payable position $ (10 ) $ (10 ) $ (4 ) $ (4 ) 2 Note 5 Restricted cash and cash equivalents (2) $ 28 $ 28 $ 29 $ 29 1 Short-term borrowings $ (7,385 ) $ (7,385 ) $ (7,094 ) $ (7,094 ) 1 Long-term debt $ (21,152 ) $ (21,341 ) $ (20,537 ) $ (20,724 ) 2 Guarantees $ — $ — $ (1 ) $ (1 ) 3 Note 7 (1) As of March 31, 2017 and December 31, 2016 , represents finance leases with a net carrying value of $6.30 billion and $6.11 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (995)	$ (897)
Other comprehensive income/(loss) before reclassifications	68	171
Amounts reclassified from accumulated other comprehensive (income)/loss	14	2
Other comprehensive income/(loss)	82	173
Balance at end of period	(913)	(724)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(994)	(897)
Other comprehensive income/(loss) before reclassifications	80	172
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0
Other comprehensive income/(loss)	80	172
Balance at end of period	(914)	(725)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(1)	0
Other comprehensive income/(loss) before reclassifications	(12)	(1)
Amounts reclassified from accumulated other comprehensive (income)/loss	14	2
Other comprehensive income/(loss)	2	1
Balance at end of period	$ 1	$ 1

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)		$ (4)	$ (3)
Interest		(162)	(155)
Reclassifications before tax		167	145
Tax (provision) benefit		(50)	(44)
Total reclassifications from Accumulated other comprehensive income/(loss)	[1]	115	100
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax		(21)	(2)
Tax (provision) benefit		7	0
Total reclassifications from Accumulated other comprehensive income/(loss)		(14)	(2)
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)		(22)	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		$ 1	$ (2)
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail	$ 13,715	$ 13,565
Retail notes receivable	10,107	10,195
Wholesale notes receivable	3,897	3,457
Finance leases and installment sale contracts - Wholesale	92	103
Total gross finance receivables	27,811	27,320
Less: Unearned income	(780)	(765)
Recorded Investment in Finance Receivables	27,031	26,555
Less: Allowance for credit losses	(346)	(343)	$ (338)
Total finance receivables, net	26,685	26,212
Finance receivables held-for-sale [Member]
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail	$ 18	$ 4

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	$ 343	$ 338	$ 346	$ 343
Allowance for credit losses as a percent of our recorded investment in finance receivables			1.28%	1.29%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	343	338
Receivables written off	(24)	(158)
Recoveries on receivables previously written off	9	35
Provision for credit losses	15	133
Adjustment due to sale of receivables	0	(8)
Foreign currency translation adjustment	3	3
Balance at end of period	346	343
Allowance for Credit Losses
Individually evaluated for impairment			$ 98	$ 85
Collectively evaluated for impairment			248	258
Allowance, Ending Balance	343	338	346	343
Recorded Investment in Finance Receivables
Individually evaluated for impairment			858	786
Collectively evaluated for impairment			26,173	25,769
Recorded Investment in Finance Receivables, Ending Balance			27,031	26,555
Customer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	331	327	331	331
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	331	327
Receivables written off	(24)	(158)
Recoveries on receivables previously written off	9	35
Provision for credit losses	12	132
Adjustment due to sale of receivables	0	(8)
Foreign currency translation adjustment	3	3
Balance at end of period	331	331
Allowance for Credit Losses
Individually evaluated for impairment			98	85
Collectively evaluated for impairment			233	246
Allowance, Ending Balance	331	327	331	331
Recorded Investment in Finance Receivables
Individually evaluated for impairment			858	786
Collectively evaluated for impairment			18,673	18,859
Recorded Investment in Finance Receivables, Ending Balance			19,531	19,645
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	10	9	12	10
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	10	9
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	12	10
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			12	10
Allowance, Ending Balance	10	9	12	10
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,539	4,479
Recorded Investment in Finance Receivables, Ending Balance			4,539	4,479
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	2	2	3	2
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	2	2
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	1	0
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	3	2
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			3	2
Allowance, Ending Balance	$ 2	$ 2	3	2
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			2,961	2,431
Recorded Investment in Finance Receivables, Ending Balance			$ 2,961	$ 2,431

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 789	$ 696
Current	26,242	25,859
Recorded Investment in Finance Receivables	27,031	26,555
91 Plus, Still Accruing	30	19
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	220	149
61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	110	82
91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	459	465
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,531	19,645
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	134	125
Current	7,960	8,051
Recorded Investment in Finance Receivables	8,094	8,176
91 Plus, Still Accruing	7	5
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	56	50
Customer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	17	16
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	61	59
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	87	67
Current	2,361	2,388
Recorded Investment in Finance Receivables	2,448	2,455
91 Plus, Still Accruing	10	6
Customer | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	23	16
Customer | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	18	12
Customer | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	46	39
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	46	40
Current	2,050	1,944
Recorded Investment in Finance Receivables	2,096	1,984
91 Plus, Still Accruing	5	4
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	22	18
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	9	7
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	15	15
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	71	68
Current	1,818	1,756
Recorded Investment in Finance Receivables	1,889	1,824
91 Plus, Still Accruing	0	2
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	13	3
Customer | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	5	2
Customer | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	53	63
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	329	287
Current	1,767	1,808
Recorded Investment in Finance Receivables	2,096	2,095
91 Plus, Still Accruing	0	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	67	40
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	47	33
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	215	214
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	103	93
Current	2,805	3,018
Recorded Investment in Finance Receivables	2,908	3,111
91 Plus, Still Accruing	6	1
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	30	11
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	7	9
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	66	73
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,539	4,479
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,793	2,705
Recorded Investment in Finance Receivables	2,793	2,705
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	307	336
Recorded Investment in Finance Receivables	307	336
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	603	582
Recorded Investment in Finance Receivables	603	582
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	6	6
Recorded Investment in Finance Receivables	6	6
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	828	848
Recorded Investment in Finance Receivables	828	848
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	2
Recorded Investment in Finance Receivables	2	2
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	2,961	2,431
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	16	15
Current	1,703	1,303
Recorded Investment in Finance Receivables	1,719	1,318
91 Plus, Still Accruing	2	1
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	7	11
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	7	3
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	1
Current	343	268
Recorded Investment in Finance Receivables	345	269
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	0
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	1
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	1	0
Current	510	475
Recorded Investment in Finance Receivables	511	475
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	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	382	366
Recorded Investment in Finance Receivables	382	366
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	0
Current	4	3
Recorded Investment in Finance Receivables	4	3
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	0
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
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
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	$ 578		$ 530
Unpaid Principal Balance With No Allowance Recorded	575		528
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	280		256
Unpaid Principal Balance With An Allowance Recorded	288		265
Related Allowance With An Allowance Recorded	98		85
Recorded Investment, Total	858		786
Unpaid Principal Balance, Total	863		793
Related Allowance, Total	98		85
Average Recorded Investment With No Allowance Recorded	535	$ 417
Interest Income Recognized With No Allowance Recorded	5	4
Average Recorded Investment With An Allowance Recorded	271	180
Interest Income Recognized With An Allowance Recorded	3	2
Average Recorded Investment, Total	806	597
Interest Income Recognized, Total	8	6
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	11		10
Unpaid Principal Balance With No Allowance Recorded	11		10
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	56		61
Unpaid Principal Balance With An Allowance Recorded	54		60
Related Allowance With An Allowance Recorded	22		22
Recorded Investment, Total	67		71
Unpaid Principal Balance, Total	65		70
Related Allowance, Total	22		22
Average Recorded Investment With No Allowance Recorded	10	14
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	61	14
Interest Income Recognized With An Allowance Recorded	0	0
Average Recorded Investment, Total	71	28
Interest Income Recognized, Total	0	0
Customer | Europe
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	48		49
Unpaid Principal Balance With No Allowance Recorded	47		48
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	4		7
Unpaid Principal Balance With An Allowance Recorded	4		7
Related Allowance With An Allowance Recorded	2		3
Recorded Investment, Total	52		56
Unpaid Principal Balance, Total	51		55
Related Allowance, Total	2		3
Average Recorded Investment With No Allowance Recorded	49	40
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	6	12
Interest Income Recognized With An Allowance Recorded	0	0
Average Recorded Investment, Total	55	52
Interest Income Recognized, Total	0	0
Customer | Asia/Pacific
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	30		3
Unpaid Principal Balance With No Allowance Recorded	29		2
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	31		50
Unpaid Principal Balance With An Allowance Recorded	31		50
Related Allowance With An Allowance Recorded	4		8
Recorded Investment, Total	61		53
Unpaid Principal Balance, Total	60		52
Related Allowance, Total	4		8
Average Recorded Investment With No Allowance Recorded	9	2
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	45	33
Interest Income Recognized With An Allowance Recorded	1	1
Average Recorded Investment, Total	54	35
Interest Income Recognized, Total	1	1
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	133		129
Unpaid Principal Balance With No Allowance Recorded	132		129
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	0		0
Unpaid Principal Balance With An Allowance Recorded	0		0
Related Allowance With An Allowance Recorded	0		0
Recorded Investment, Total	133		129
Unpaid Principal Balance, Total	132		129
Related Allowance, Total	0		0
Average Recorded Investment With No Allowance Recorded	128	81
Interest Income Recognized With No Allowance Recorded	1	1
Average Recorded Investment With An Allowance Recorded	0	11
Interest Income Recognized With An Allowance Recorded	0	0
Average Recorded Investment, Total	128	92
Interest Income Recognized, Total	1	1
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	67		68
Unpaid Principal Balance With No Allowance Recorded	67		68
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	110		93
Unpaid Principal Balance With An Allowance Recorded	121		104
Related Allowance With An Allowance Recorded	39		34
Recorded Investment, Total	177		161
Unpaid Principal Balance, Total	188		172
Related Allowance, Total	39		34
Average Recorded Investment With No Allowance Recorded	72	27
Interest Income Recognized With No Allowance Recorded	1	0
Average Recorded Investment With An Allowance Recorded	96	51
Interest Income Recognized With An Allowance Recorded	1	1
Average Recorded Investment, Total	168	78
Interest Income Recognized, Total	2	1
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	289		271
Unpaid Principal Balance With No Allowance Recorded	289		271
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	79		45
Unpaid Principal Balance With An Allowance Recorded	78		44
Related Allowance With An Allowance Recorded	31		18
Recorded Investment, Total	368		316
Unpaid Principal Balance, Total	367		315
Related Allowance, Total	31		18
Average Recorded Investment With No Allowance Recorded	267	253
Interest Income Recognized With No Allowance Recorded	3	3
Average Recorded Investment With An Allowance Recorded	63	59
Interest Income Recognized With An Allowance Recorded	1	0
Average Recorded Investment, Total	330	312
Interest Income Recognized, Total	4	$ 3
Dealer
Financing Receivable, Impaired
Recorded Investment, Total	0		0
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	$ 0		$ 0

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 552	$ 579
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	66	66
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	37	35
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	15	12
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	56	69
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	308	307
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	70	90
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
	Mar. 31, 2017USD ($)contracts	Mar. 31, 2016USD ($)contracts	Dec. 31, 2016USD ($)
Financing Receivable, Modifications
Remaining commitments	$ 0		$ 11
Finance receivables modified as TDRs
Number of Contracts | contracts	30	21
Pre-TDR Recorded Investment	$ 124	$ 52
Post-TDR Recorded Investment	$ 113	$ 40
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	9	11
Pre-TDR Recorded Investment	$ 1	$ 10
Post-TDR Recorded Investment	$ 1	$ 10
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts | contracts	1	0
Pre-TDR Recorded Investment	$ 0	$ 0
Post-TDR Recorded Investment	$ 0	$ 0
Customer | Asia/Pacific
Finance receivables modified as TDRs
Number of Contracts | contracts	5	4
Pre-TDR Recorded Investment	$ 39	$ 3
Post-TDR Recorded Investment	$ 30	$ 3
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts	2	0
Pre-TDR Recorded Investment	$ 57	$ 0
Post-TDR Recorded Investment	$ 56	$ 0
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	7	2
Pre-TDR Recorded Investment	$ 2	$ 0
Post-TDR Recorded Investment	$ 2	$ 0
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	6	4
Pre-TDR Recorded Investment	$ 25	$ 39
Post-TDR Recorded Investment	$ 24	$ 27
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0

Derivative Financial Instrume32

Derivative Financial Instruments and Risk Management (Details) $ in Millions	Mar. 31, 2017USD ($)
Derivative
Deferred net gains, interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 2

Derivative Financial Instrume33

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value
Asset Fair Value	$ 55	$ 72
Liability Fair Value	(27)	(8)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	10	29
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	3	4
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(1)	(1)
Designated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	24	29
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(16)	3
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	18	35
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	3	12
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(10)	(4)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	$ 25	$ 27

Derivative Financial Instrume34

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Derivative
Derivative instruments, notional amount	$ 3,010	$ 2,630

Derivative Financial Instrume35

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Designated derivatives | Fair value hedges | Interest rate contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ (1)	$ 3
Gains (Losses) on Borrowings	1	(4)
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(18)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	(21)
Recognized in Earnings (Ineffective Portion)	0
Designated derivatives | Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	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)	1	(2)
Recognized in Earnings (Ineffective Portion)	0	0
Designated derivatives | Cash flow hedges | Cross currency contracts
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(18)
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)	(22)
Recognized in Earnings (Ineffective Portion)	0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(7)	(4)
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(4)	1
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ (3)	$ (5)

Derivative Financial Instrume36

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Offsetting Assets and Liabilities [Abstract]
Gross Amount of Recognized Assets	$ 55	$ 72
Gross Amounts Offset	0	0
Net Amount of Assets	55	72
Gross Amounts Not Offset	(5)	(7)
Net Amount	50	65
Gross Amount of Recognized Liabilities	(27)	(8)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(27)	(8)
Gross Amounts Not Offset	5	7
Net Amount	$ (22)	$ (1)

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Segment Reporting Information
External Revenues	$ 662	$ 643
Profit before income taxes	167	145
Interest Expense	162	155
Depreciation on equipment leased to others	205	203
Provision for credit losses	16	29
Assets	34,732		$ 33,615
Capital expenditures	271	297
Operating Segments
Segment Reporting Information
External Revenues	639	633
Profit before income taxes	178	160
Interest Expense	156	156
Depreciation on equipment leased to others	205	203
Provision for credit losses	13	31
Assets	31,880		32,383
Capital expenditures	270	295
Unallocated
Segment Reporting Information
External Revenues	31	18
Profit before income taxes	(37)	(32)
Interest Expense	42	24
Depreciation on equipment leased to others	0	0
Provision for credit losses	0	0
Assets	3,267		1,688
Capital expenditures	1	1
Timing
Segment Reporting Information
External Revenues	(8)	(8)
Profit before income taxes	(6)	(4)
Interest Expense	0	0
Depreciation on equipment leased to others	0	0
Provision for credit losses	3	(2)
Assets	23		27
Capital expenditures	0	1
Methodology
Segment Reporting Information
External Revenues	0	0
Profit before income taxes	32	21
Interest Expense	(36)	(25)
Depreciation on equipment leased to others	0	0
Provision for credit losses	0	0
Assets	(199)		(220)
Capital expenditures	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues	0	0
Profit before income taxes	0	0
Interest Expense	0	0
Depreciation on equipment leased to others	0	0
Provision for credit losses	0	0
Assets	(239)		(263)
Capital expenditures	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	320	300
Profit before income taxes	82	82
Interest Expense	73	73
Depreciation on equipment leased to others	129	109
Provision for credit losses	7	9
Assets	14,803		14,925
Capital expenditures	182	172
Europe | Operating Segments
Segment Reporting Information
External Revenues	65	66
Profit before income taxes	20	20
Interest Expense	9	8
Depreciation on equipment leased to others	20	20
Provision for credit losses	1	2
Assets	3,807		3,834
Capital expenditures	18	38
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	63	61
Profit before income taxes	26	21
Interest Expense	20	20
Depreciation on equipment leased to others	7	6
Provision for credit losses	(4)	(1)
Assets	3,802		3,620
Capital expenditures	2	10
Latin America and CPF | Operating Segments
Segment Reporting Information
External Revenues	121	125
Profit before income taxes	35	27
Interest Expense	42	42
Depreciation on equipment leased to others	12	17
Provision for credit losses	9	17
Assets	6,829		7,270
Capital expenditures	33	17
Mining | Operating Segments
Segment Reporting Information
External Revenues	70	81
Profit before income taxes	15	10
Interest Expense	12	13
Depreciation on equipment leased to others	37	51
Provision for credit losses	0	4
Assets	2,639		$ 2,734
Capital expenditures	$ 35	$ 58

Guarantees (Details)

Guarantees (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Guarantor Obligations
Related recorded liability		$ 1
Guarantees, maximum potential amount of future payments	$ 56	43
SPC's assets in Consolidated Statements of Financial Position	1,150	1,090
SPC's liabilities in Consolidated Statements of Financial Position	1,150	$ 1,090
Maximum
Guarantor Obligations
Related recorded liability	$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Recurring basis | Level 2
Assets
Derivative financial instruments, net	$ 28	$ 64

Fair Value Measurements (Deta40

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Fair value of impaired loans	$ 127	$ 137

Fair Value Measurements (Deta41

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	$ (7,385)	$ (7,094)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	1,104	1,795
Restricted cash and cash equivalents	28	29
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(7,385)	(7,094)
Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest rate contracts, in a net receivable position	3	4
Foreign currency contracts, in a receivable position	3	12
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a net payable position	(1)	(1)
Foreign currency contracts, in a payable position	(10)	(4)
Long-term debt	(21,341)	(20,724)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,332	19,949
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Guarantees	0	(1)
Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	1,104	1,795
Finance receivables, net (excluding finance leases)	20,384	20,101
Interest rate contracts, in a net receivable position	3	4
Foreign currency contracts, in a receivable position	3	12
Restricted cash and cash equivalents	28	29
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a net payable position	(1)	(1)
Foreign currency contracts, in a payable position	(10)	(4)
Short-term borrowings	(7,385)	(7,094)
Long-term debt	(21,152)	(20,537)
Guarantees	0	(1)
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases	6,300	6,110
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign currency contracts, in a receivable position	49	56
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign currency contracts, in a payable position	(16)	(3)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign currency contracts, in a receivable position	49	56
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign currency contracts, in a payable position	$ (16)	$ (3)

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Estimated annual tax rate	30.00%	30.00%