Caterpillar Financial Services 10-Q 1 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 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	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Retail finance		$ 309	$ 307	$ 924	$ 914
Operating lease		247	257	737	756
Wholesale finance		79	62	222	202
Other, net		38	25	128	81
Total revenues		673	651	2,011	1,953
Expenses:
Interest		169	151	499	458
Depreciation on equipment leased to others		201	213	608	627
General, operating and administrative		113	97	319	292
Provision for credit losses		48	29	82	96
Other		12	12	36	31
Total expenses		543	502	1,544	1,504
Other income (expense)		(4)	(3)	(10)	(10)
Profit before income taxes		126	146	457	439
Provision for income taxes		38	48	137	136
Profit of consolidated companies		88	98	320	303
Less: Profit attributable to noncontrolling interests		2	1	5	4
Profit	[1]	$ 86	$ 97	$ 315	$ 299
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 88	$ 98	$ 320	$ 303
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	154	(5)	395	100
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	(14)	(10)	(41)	(15)
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	11	7	41	13
Available-for-sale securities:
Gains (losses) deferred, net of tax (expense)/benefit	(1)	1	0	(1)
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	0	0	0	0
Total Other comprehensive income (loss), net of tax	150	(7)	395	97
Comprehensive income (loss)	238	91	715	400
Less: Comprehensive income (loss) attributable to the noncontrolling interests	5	1	11	2
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 233	$ 90	$ 704	$ 398

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ 30	$ 4	$ 94	$ 21
Derivative financial instruments:
Gains (losses) deferred, tax	8	5	22	8
(Gains) losses reclassified to earnings, tax	(7)	(3)	(23)	(6)
Available-for-sale securities:
Gains (losses) deferred, tax	0	(1)	0	(1)
(Gains) losses reclassified to earnings, tax	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 710	$ 1,795
Finance receivables, net	26,597	26,212
Notes receivable from Caterpillar	1,577	530
Equipment on operating leases, less accumulated depreciation	3,580	3,708
Deferred and refundable income taxes	156	119
Other assets	1,063	1,251
Total assets	33,683	33,615
Liabilities and shareholder's equity:
Payable to dealers and others	142	140
Payable to Caterpillar - other	60	49
Accrued expenses	241	172
Income taxes payable	95	32
Payable to Caterpillar - borrowings	1,493	1,637
Short-term borrowings	5,459	7,094
Current maturities of long-term debt	5,614	6,155
Long-term debt	16,015	14,382
Deferred income taxes and other liabilities	864	969
Total liabilities	29,983	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	3,423	3,108
Accumulated other comprehensive income/(loss)	(606)	(995)
Noncontrolling interests	136	125
Total shareholder's equity	3,700	2,985
Total liabilities and shareholder's equity	$ 33,683	$ 33,615

Consolidated Statements of Fin6

Consolidated Statements of Financial Position (Parentheticals) - $ / shares	Sep. 30, 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	303			299		4
Foreign currency translation, net of tax	100				102	(2)
Derivative financial instruments, net of tax	(2)				(2)
Available-for-sale securities, net of tax	(1)				(1)
Balance at Sep. 30, 2016	3,375	745	2	3,298	(798)	128
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	320			315		5
Foreign currency translation, net of tax	395				389	6
Derivative financial instruments, net of tax	0				0
Available-for-sale securities, net of tax	0				0
Balance at Sep. 30, 2017	$ 3,700	$ 745	$ 2	$ 3,423	$ (606)	$ 136

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Profit of consolidated companies	$ 320	$ 303
Adjustments for non-cash items:
Depreciation and amortization	616	635
Amortization of receivables purchase discount	(180)	(158)
Provision for credit losses	82	96
Other, net	12	81
Changes in assets and liabilities:
Receivables from others	69	10
Other receivables/payables with Caterpillar	1	(2)
Payable to dealers and others	(31)	30
Accrued interest payable	3	(17)
Accrued expenses and other liabilities, net	(4)	22
Income taxes payable	38	100
Settlements of designated derivatives	(7)	36
Debt exchange premium	0	(33)
Net cash provided by operating activities	919	1,103
Cash flows from investing activities:
Capital expenditures for equipment on operating leases and other capital expenditures	(1,018)	(1,265)
Proceeds from disposals of equipment	753	497
Additions to finance receivables	(9,765)	(8,888)
Collections of finance receivables	10,192	9,307
Net changes in Caterpillar purchased receivables	(161)	580
Proceeds from sales of receivables	98	55
Net change in variable lending to Caterpillar	(1,051)	(1,001)
Additions to other notes receivable with Caterpillar	(53)	(91)
Collections on other notes receivable with Caterpillar	56	46
Proceeds from sale of securities	4	0
Restricted cash and cash equivalents activity, net	(2)	7
Settlements of undesignated derivatives	23	(23)
Net cash provided by (used for) investing activities	(924)	(776)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	(105)	466
Proceeds from borrowings with Caterpillar	0	253
Payments on borrowings with Caterpillar	(49)	(3)
Proceeds from debt issued (original maturities greater than three months)	6,972	4,424
Payments on debt issued (original maturities greater than three months)	(5,714)	(5,077)
Short-term borrowings, net (original maturities three months or less)	(2,207)	(365)
Net cash provided by (used for) financing activities	(1,103)	(302)
Effect of exchange rate changes on cash and cash equivalents	23	10
Increase/(decrease) in cash and cash equivalents	(1,085)	35
Cash and cash equivalents at beginning of year	1,795	1,016
Cash and cash equivalents at end of period	710	1,051
Non-cash activity:
Debt exchange, original medium term notes amount		381
Debt exchange, new medium term notes amount		$ 366
Debt exchange, new medium term notes interest rate (as a percent)		1.93%
Debt exchange, new medium term notes due date (year)		2,021
Debt exchange, cash paid		$ 15
Debt exchange premium	$ 0	$ 33

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and 2016 , (b) the consolidated comprehensive income for the three and nine months ended September 30, 2017 and 2016 , (c) the consolidated financial position as of September 30, 2017 and December 31, 2016 , (d) the consolidated changes in shareholder's equity for the nine months ended September 30, 2017 and 2016 and (e) the consolidated cash flows for the nine months ended September 30, 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. 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. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation. 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.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 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. 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 will adopt the new guidance effective January 1, 2018 under the modified retrospective approach. We have completed our evaluation of the impact of the new standard 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. Derivatives and hedging – In August 2017, the FASB issued accounting guidance to better align hedge accounting with a company’s risk management activities, simplify the application of hedge accounting and improve the disclosures of hedging arrangements. The new guidance is required to be applied on a modified retrospective basis. The guidance is effective January 1, 2019, with early adoption permitted. We are in the process of evaluating the effect of the new guidance on our financial statements.

Finance Receivables

Finance Receivables	9 Months Ended
	Sep. 30, 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) September 30, December 31, Finance leases and installment sale contracts – Retail (1) $ 14,172 $ 13,565 Retail notes receivable 9,711 10,195 Wholesale notes receivable 3,753 3,457 Finance leases and installment sale contracts – Wholesale 118 103 27,754 27,320 Less: Unearned income (814 ) (765 ) Recorded investment in finance receivables 26,940 26,555 Less: Allowance for credit losses (343 ) (343 ) Total finance receivables, net $ 26,597 $ 26,212 (1) Includes $0 and $4 million of finance receivables classified as held for sale as of September 30, 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, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. 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 and 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 September 30, 2017 was $343 million or 1.27 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) September 30, 2017 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 331 $ 10 $ 2 $ 343 Receivables written off (119 ) — — (119 ) Recoveries on receivables previously written off 31 — — 31 Provision for credit losses 80 — — 80 Adjustment due to sale of receivables (1 ) — — (1 ) Foreign currency translation adjustment 9 — — 9 Balance at end of period $ 331 $ 10 $ 2 $ 343 Individually evaluated for impairment $ 100 $ — $ — $ 100 Collectively evaluated for impairment 231 10 2 243 Ending Balance $ 331 $ 10 $ 2 $ 343 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 869 $ — $ — $ 869 Collectively evaluated for impairment 18,704 4,544 2,823 26,071 Ending Balance $ 19,573 $ 4,544 $ 2,823 $ 26,940 (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) September 30, 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 $ 64 $ 17 $ 49 $ 130 $ 7,916 $ 8,046 $ 8 Europe 27 9 56 92 2,642 2,734 4 Asia/Pacific 27 13 17 57 2,299 2,356 9 Mining 8 4 52 64 1,682 1,746 1 Latin America 53 28 180 261 1,672 1,933 — Caterpillar Power Finance 11 34 124 169 2,589 2,758 11 Dealer North America — — — — 2,816 2,816 — Europe — — — — 350 350 — Asia/Pacific — — — — 580 580 — Mining — — — — 5 5 — Latin America 5 — 3 8 783 791 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 13 5 3 21 1,666 1,687 3 Europe 2 — — 2 333 335 — Asia/Pacific 1 — — 1 396 397 — Mining — — — — — — — Latin America — — — — 400 400 — Caterpillar Power Finance — — — — 4 4 — Total $ 211 $ 110 $ 484 $ 805 $ 26,135 $ 26,940 $ 36 (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 September 30, 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 September 30, 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 $ 16 $ 21 $ — $ 10 $ 10 $ — Europe 47 47 — 49 48 — Asia/Pacific 32 31 — 3 2 — Mining 127 125 — 129 129 — Latin America 60 60 — 68 68 — Caterpillar Power Finance 187 200 — 271 271 — Total $ 469 $ 484 $ — $ 530 $ 528 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 36 $ 35 $ 13 $ 61 $ 60 $ 22 Europe 8 8 5 7 7 3 Asia/Pacific 25 25 3 50 50 8 Mining — — — — — — Latin America 92 104 35 93 104 34 Caterpillar Power Finance 239 241 44 45 44 18 Total $ 400 $ 413 $ 100 $ 256 $ 265 $ 85 Total Impaired Finance Receivables North America $ 52 $ 56 $ 13 $ 71 $ 70 $ 22 Europe 55 55 5 56 55 3 Asia/Pacific 57 56 3 53 52 8 Mining 127 125 — 129 129 — Latin America 152 164 35 161 172 34 Caterpillar Power Finance 426 441 44 316 315 18 Total $ 869 $ 897 $ 100 $ 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 $ 14 $ 1 $ 24 $ — Europe 47 — 49 1 Asia/Pacific 30 1 1 — Mining 128 1 90 2 Latin America 68 1 58 — Caterpillar Power Finance 171 1 282 3 Total $ 458 $ 5 $ 504 $ 6 Impaired Finance Receivables With An Allowance Recorded North America $ 44 $ — $ 42 $ — Europe 6 — 10 — Asia/Pacific 28 1 35 — Mining — — 19 — Latin America 102 1 67 1 Caterpillar Power Finance 251 3 43 — Total $ 431 $ 5 $ 216 $ 1 Total Impaired Finance Receivables North America $ 58 $ 1 $ 66 $ — Europe 53 — 59 1 Asia/Pacific 58 2 36 — Mining 128 1 109 2 Latin America 170 2 125 1 Caterpillar Power Finance 422 4 325 3 Total $ 889 $ 10 $ 720 $ 7 (Millions of dollars) Nine Months Ended Nine Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 12 $ 1 $ 19 $ 1 Europe 48 1 45 1 Asia/Pacific 22 2 2 — Mining 128 5 84 3 Latin America 69 2 39 — Caterpillar Power Finance 233 7 269 8 Total $ 512 $ 18 $ 458 $ 13 Impaired Finance Receivables With An Allowance Recorded North America $ 52 $ 1 $ 28 $ — Europe 6 — 11 — Asia/Pacific 35 2 34 2 Mining — — 15 — Latin America 101 3 59 2 Caterpillar Power Finance 141 4 50 1 Total $ 335 $ 10 $ 197 $ 5 Total Impaired Finance Receivables North America $ 64 $ 2 $ 47 $ 1 Europe 54 1 56 1 Asia/Pacific 57 4 36 2 Mining 128 5 99 3 Latin America 170 5 98 2 Caterpillar Power Finance 374 11 319 9 Total $ 847 $ 28 $ 655 $ 18 Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. As of September 30, 2017 and December 31, 2016 , there were finance receivables on non-accrual status for the Dealer portfolio segment of $3 million and $-, respectively, all of which were in the Latin America finance receivable class. As of September 30, 2017 and December 31, 2016 , there were finance receivables on non-accrual status for the Caterpillar Purchased Receivables portfolio segment of $- and $1 million, respectively, all of which were in the Europe finance receivable class. The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) September 30, December 31, North America $ 48 $ 66 Europe 56 35 Asia/Pacific 11 12 Mining 55 69 Latin America 242 307 Caterpillar Power Finance 277 90 Total $ 689 $ 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 September 30, 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 and nine months ended September 30, 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 11 $ 4 $ 5 2 $ — $ — Europe 1 — — — — — Asia/Pacific — — — 4 1 1 Mining — — — 1 33 30 Latin America (1) 3 21 22 341 105 74 Caterpillar Power Finance 5 51 44 4 13 13 Total 20 $ 76 $ 71 352 $ 152 $ 118 Nine Months Ended Nine Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 37 $ 13 $ 13 15 $ 16 $ 16 Europe 2 — — 3 11 8 Asia/Pacific 6 39 30 8 4 4 Mining 2 57 56 2 43 35 Latin America 17 26 27 431 117 87 Caterpillar Power Finance (2) 59 319 305 34 196 177 Total 123 $ 454 $ 431 493 $ 387 $ 327 (1) For the three months ended September 30, 2016, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers. (2) For the nine months ended September 30, 2017, 44 contracts with a pre-TDR recorded investment of $200 million and a post-TDR recorded investment of $200 million are related to four customers. During the nine months ended September 30, 2017, there were 241 contracts, primarily related to two customers, with a recorded investment of $16 million with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date in the Customer portfolio segment, all of which were in the Latin America finance receivable class.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, December 31, Designated derivatives Interest rate contracts Other assets $ 3 $ 4 Interest rate contracts Accrued expenses (1 ) (1 ) Cross currency contracts Other assets 8 29 Cross currency contracts Accrued expenses (41 ) (3 ) $ (31 ) $ 29 Undesignated derivatives Foreign exchange contracts Other assets $ 17 $ 12 Foreign exchange contracts Accrued expenses (8 ) (4 ) Cross currency contracts Other assets 25 27 $ 34 $ 35 The total notional amount of our derivative instruments was $3.56 billion and $2.63 billion as of September 30, 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) $ — $ — $ (11 ) $ 11 Nine Months Ended Nine Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (1 ) $ 1 $ (11 ) $ 10 Cash Flow Hedges (Millions of dollars) Three Months Ended September 30, 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 $ (1 ) Interest expense $ 1 $ — Cross currency contracts (21 ) Other income (expense) (20 ) — Cross currency contracts Interest expense 1 — $ (22 ) $ (18 ) $ — Three Months Ended September 30, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 2 Interest expense $ — $ — Cross currency contracts (17 ) Other income (expense) (10 ) — $ (15 ) $ (10 ) $ — Nine Months Ended September 30, 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 $ (1 ) Interest expense $ 2 $ — Cross currency contracts (62 ) Other income (expense) (69 ) — Cross currency contracts Interest expense 3 — $ (63 ) $ (64 ) $ — Nine Months Ended September 30, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ (3 ) $ — Cross currency contracts (23 ) Other income (expense) (16 ) — $ (23 ) $ (19 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended September 30, Classification 2017 2016 Foreign exchange contracts Other income (expense) $ 14 $ (5 ) Cross currency contracts Other income (expense) (3 ) — $ 11 $ (5 ) Nine Months Ended September 30, Classification 2017 2016 Foreign exchange contracts Other income (expense) $ 25 $ (21 ) Cross currency contracts Other income (expense) (4 ) (12 ) $ 21 $ (33 ) Balance sheet offsetting We enter into International Swaps and Derivatives Association (ISDA) master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or us under the master netting agreements. As of September 30, 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) September 30, December 31, Derivative Assets Gross Amount of Recognized Assets $ 53 $ 72 Gross Amounts Offset — — Net Amount of Assets (1) 53 72 Gross Amounts Not Offset (8 ) (7 ) Net Amount $ 45 $ 65 Derivative Liabilities Gross Amount of Recognized Liabilities $ (50 ) $ (8 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (50 ) (8 ) Gross Amounts Not Offset 8 7 Net Amount $ (42 ) $ (1 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	9 Months Ended
	Sep. 30, 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 Available-for- sale securities Total Three Months Ended September 30, 2016 Balance at June 30, 2016 $ (790 ) $ 1 $ (2 ) $ (791 ) Other comprehensive income/(loss) before reclassifications (5 ) (10 ) 1 (14 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 7 — 7 Other comprehensive income/(loss) (5 ) (3 ) 1 (7 ) Balance at September 30, 2016 $ (795 ) $ (2 ) $ (1 ) $ (798 ) Three Months Ended September 30, 2017 Balance at June 30, 2017 $ (756 ) $ 2 $ 1 $ (753 ) Other comprehensive income/(loss) before reclassifications 151 (14 ) (1 ) 136 Amounts reclassified from accumulated other comprehensive (income)/loss — 11 — 11 Other comprehensive income/(loss) 151 (3 ) (1 ) 147 Balance at September 30, 2017 $ (605 ) $ (1 ) $ — $ (606 ) Nine Months Ended September 30, 2016 Balance at December 31, 2015 $ (897 ) $ — $ — $ (897 ) Other comprehensive income/(loss) before reclassifications 102 (15 ) (1 ) 86 Amounts reclassified from accumulated other comprehensive (income)/loss — 13 — 13 Other comprehensive income/(loss) 102 (2 ) (1 ) 99 Balance at September 30, 2016 $ (795 ) $ (2 ) $ (1 ) $ (798 ) Nine Months Ended September 30, 2017 Balance at December 31, 2016 $ (994 ) $ (1 ) $ — $ (995 ) Other comprehensive income/(loss) before reclassifications 389 (41 ) — 348 Amounts reclassified from accumulated other comprehensive (income)/loss — 41 — 41 Other comprehensive income/(loss) 389 — — 389 Balance at September 30, 2017 $ (605 ) $ (1 ) $ — $ (606 ) The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Nine Months Ended Classification of income (expense) 2017 2016 2017 2016 Cross currency contracts Other income (expense) $ (20 ) $ (10 ) $ (69 ) $ (16 ) Cross currency contracts Interest expense 1 — 3 — Interest rate contracts Interest expense 1 — 2 (3 ) Reclassifications before tax (18 ) (10 ) (64 ) (19 ) Tax (provision) benefit 7 3 23 6 Total reclassifications from Accumulated other comprehensive income/(loss) $ (11 ) $ (7 ) $ (41 ) $ (13 )

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 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 September 30 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 September 30, 2017 Capital expenditures North America $ 338 $ 90 $ 77 $ 130 $ 11 $ 14,703 $ 187 Europe 68 20 9 19 2 4,084 25 Asia/Pacific 68 25 22 5 1 3,924 2 Latin America and CPF 101 2 41 10 20 6,371 6 Mining 71 12 12 36 4 2,372 88 Total Segments 646 149 161 200 38 31,454 308 Unallocated 35 (47 ) 50 — — 2,718 — Timing (8 ) (13 ) — 1 10 16 — Methodology — 37 (42 ) — — (225 ) — Inter-segment Eliminations (1) — — — — — (280 ) — Total $ 673 $ 126 $ 169 $ 201 $ 48 $ 33,683 $ 308 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 $ 310 $ 79 $ 70 $ 123 $ 10 $ 14,925 $ 281 Europe 68 21 8 21 1 3,834 44 Asia/Pacific 65 20 21 8 1 3,620 4 Latin America and CPF 122 31 36 15 17 7,270 11 Mining 73 14 11 45 (3 ) 2,734 19 Total Segments 638 165 146 212 26 32,383 359 Unallocated 21 (35 ) 32 — — 1,688 (3 ) Timing (8 ) (7 ) — 1 3 27 — Methodology — 23 (27 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 651 $ 146 $ 151 $ 213 $ 29 $ 33,615 $ 356 (1) Eliminations are primarily related to intercompany loans. Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows: (Millions of dollars) 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2017 Capital expenditures North America $ 989 $ 262 $ 224 $ 388 $ 25 $ 14,703 $ 722 Europe 200 62 27 60 — 4,084 71 Asia/Pacific 197 73 64 19 (5 ) 3,924 5 Latin America and CPF 335 48 124 33 56 6,371 48 Mining 213 57 37 107 (5 ) 2,372 168 Total Segments 1,934 502 476 607 71 31,454 1,014 Unallocated 100 (128 ) 139 — — 2,718 4 Timing (23 ) (20 ) — 1 11 16 — Methodology — 103 (116 ) — — (225 ) — Inter-segment Eliminations (1) — — — — — (280 ) — Total $ 2,011 $ 457 $ 499 $ 608 $ 82 $ 33,683 $ 1,018 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 $ 927 $ 255 $ 216 $ 350 $ 23 $ 14,925 $ 933 Europe 202 63 25 62 3 3,834 120 Asia/Pacific 190 56 62 21 6 3,620 73 Latin America and CPF 367 76 118 47 59 7,270 35 Mining 232 35 35 145 3 2,734 105 Total Segments 1,918 485 456 625 94 32,383 1,266 Unallocated 60 (99 ) 81 — 1 1,688 — Timing (25 ) (13 ) — 2 1 27 (1 ) Methodology — 66 (79 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 1,953 $ 439 $ 458 $ 627 $ 96 $ 33,615 $ 1,265 (1) Eliminations are primarily related to intercompany loans.

Guarantees

Guarantees	9 Months Ended
	Sep. 30, 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 September 30, 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 $87 million and $43 million at September 30, 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 September 30, 2017 and December 31, 2016 , the SPC’s assets of $1.10 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 $1.10 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	9 Months Ended
	Sep. 30, 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 $3 million and $64 million as of September 30, 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, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. 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 $251 million and $137 million as of September 30, 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) September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 710 $ 710 $ 1,795 $ 1,795 1 Finance receivables, net (excluding finance leases (1) ) $ 19,797 $ 19,787 $ 20,101 $ 19,949 3 Note 3 Interest rate contracts: In a net receivable position $ 3 $ 3 $ 4 $ 4 2 Note 4 In a net payable position $ (1 ) $ (1 ) $ (1 ) $ (1 ) 2 Note 4 Cross currency contracts: In a receivable position $ 33 $ 33 $ 56 $ 56 2 Note 4 In a payable position $ (41 ) $ (41 ) $ (3 ) $ (3 ) 2 Note 4 Foreign currency contracts: In a receivable position $ 17 $ 17 $ 12 $ 12 2 Note 4 In a payable position $ (8 ) $ (8 ) $ (4 ) $ (4 ) 2 Note 4 Restricted cash and cash equivalents (2) $ 31 $ 31 $ 29 $ 29 1 Short-term borrowings $ (5,459 ) $ (5,459 ) $ (7,094 ) $ (7,094 ) 1 Long-term debt $ (21,629 ) $ (21,854 ) $ (20,537 ) $ (20,724 ) 2 Guarantees $ — $ — $ (1 ) $ (1 ) 3 Note 7 (1) As of September 30, 2017 and December 31, 2016 , represents finance leases with a net carrying value of $6.80 billion and $6.11 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 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	9 Months Ended
	Sep. 30, 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 third quarter of 2017 , compared with 31 percent in the third quarter of 2016 .

Finance Receivables (Tables)

Finance Receivables (Tables)	9 Months Ended
	Sep. 30, 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) September 30, December 31, Finance leases and installment sale contracts – Retail (1) $ 14,172 $ 13,565 Retail notes receivable 9,711 10,195 Wholesale notes receivable 3,753 3,457 Finance leases and installment sale contracts – Wholesale 118 103 27,754 27,320 Less: Unearned income (814 ) (765 ) Recorded investment in finance receivables 26,940 26,555 Less: Allowance for credit losses (343 ) (343 ) Total finance receivables, net $ 26,597 $ 26,212 (1) Includes $0 and $4 million of finance receivables classified as held for sale as of September 30, 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) September 30, 2017 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 331 $ 10 $ 2 $ 343 Receivables written off (119 ) — — (119 ) Recoveries on receivables previously written off 31 — — 31 Provision for credit losses 80 — — 80 Adjustment due to sale of receivables (1 ) — — (1 ) Foreign currency translation adjustment 9 — — 9 Balance at end of period $ 331 $ 10 $ 2 $ 343 Individually evaluated for impairment $ 100 $ — $ — $ 100 Collectively evaluated for impairment 231 10 2 243 Ending Balance $ 331 $ 10 $ 2 $ 343 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 869 $ — $ — $ 869 Collectively evaluated for impairment 18,704 4,544 2,823 26,071 Ending Balance $ 19,573 $ 4,544 $ 2,823 $ 26,940 (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) September 30, 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 $ 64 $ 17 $ 49 $ 130 $ 7,916 $ 8,046 $ 8 Europe 27 9 56 92 2,642 2,734 4 Asia/Pacific 27 13 17 57 2,299 2,356 9 Mining 8 4 52 64 1,682 1,746 1 Latin America 53 28 180 261 1,672 1,933 — Caterpillar Power Finance 11 34 124 169 2,589 2,758 11 Dealer North America — — — — 2,816 2,816 — Europe — — — — 350 350 — Asia/Pacific — — — — 580 580 — Mining — — — — 5 5 — Latin America 5 — 3 8 783 791 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 13 5 3 21 1,666 1,687 3 Europe 2 — — 2 333 335 — Asia/Pacific 1 — — 1 396 397 — Mining — — — — — — — Latin America — — — — 400 400 — Caterpillar Power Finance — — — — 4 4 — Total $ 211 $ 110 $ 484 $ 805 $ 26,135 $ 26,940 $ 36 (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 September 30, 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 $ 16 $ 21 $ — $ 10 $ 10 $ — Europe 47 47 — 49 48 — Asia/Pacific 32 31 — 3 2 — Mining 127 125 — 129 129 — Latin America 60 60 — 68 68 — Caterpillar Power Finance 187 200 — 271 271 — Total $ 469 $ 484 $ — $ 530 $ 528 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 36 $ 35 $ 13 $ 61 $ 60 $ 22 Europe 8 8 5 7 7 3 Asia/Pacific 25 25 3 50 50 8 Mining — — — — — — Latin America 92 104 35 93 104 34 Caterpillar Power Finance 239 241 44 45 44 18 Total $ 400 $ 413 $ 100 $ 256 $ 265 $ 85 Total Impaired Finance Receivables North America $ 52 $ 56 $ 13 $ 71 $ 70 $ 22 Europe 55 55 5 56 55 3 Asia/Pacific 57 56 3 53 52 8 Mining 127 125 — 129 129 — Latin America 152 164 35 161 172 34 Caterpillar Power Finance 426 441 44 316 315 18 Total $ 869 $ 897 $ 100 $ 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 $ 14 $ 1 $ 24 $ — Europe 47 — 49 1 Asia/Pacific 30 1 1 — Mining 128 1 90 2 Latin America 68 1 58 — Caterpillar Power Finance 171 1 282 3 Total $ 458 $ 5 $ 504 $ 6 Impaired Finance Receivables With An Allowance Recorded North America $ 44 $ — $ 42 $ — Europe 6 — 10 — Asia/Pacific 28 1 35 — Mining — — 19 — Latin America 102 1 67 1 Caterpillar Power Finance 251 3 43 — Total $ 431 $ 5 $ 216 $ 1 Total Impaired Finance Receivables North America $ 58 $ 1 $ 66 $ — Europe 53 — 59 1 Asia/Pacific 58 2 36 — Mining 128 1 109 2 Latin America 170 2 125 1 Caterpillar Power Finance 422 4 325 3 Total $ 889 $ 10 $ 720 $ 7 (Millions of dollars) Nine Months Ended Nine Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 12 $ 1 $ 19 $ 1 Europe 48 1 45 1 Asia/Pacific 22 2 2 — Mining 128 5 84 3 Latin America 69 2 39 — Caterpillar Power Finance 233 7 269 8 Total $ 512 $ 18 $ 458 $ 13 Impaired Finance Receivables With An Allowance Recorded North America $ 52 $ 1 $ 28 $ — Europe 6 — 11 — Asia/Pacific 35 2 34 2 Mining — — 15 — Latin America 101 3 59 2 Caterpillar Power Finance 141 4 50 1 Total $ 335 $ 10 $ 197 $ 5 Total Impaired Finance Receivables North America $ 64 $ 2 $ 47 $ 1 Europe 54 1 56 1 Asia/Pacific 57 4 36 2 Mining 128 5 99 3 Latin America 170 5 98 2 Caterpillar Power Finance 374 11 319 9 Total $ 847 $ 28 $ 655 $ 18
Recorded investment in customer finance receivables on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) September 30, December 31, North America $ 48 $ 66 Europe 56 35 Asia/Pacific 11 12 Mining 55 69 Latin America 242 307 Caterpillar Power Finance 277 90 Total $ 689 $ 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 11 $ 4 $ 5 2 $ — $ — Europe 1 — — — — — Asia/Pacific — — — 4 1 1 Mining — — — 1 33 30 Latin America (1) 3 21 22 341 105 74 Caterpillar Power Finance 5 51 44 4 13 13 Total 20 $ 76 $ 71 352 $ 152 $ 118 Nine Months Ended Nine Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 37 $ 13 $ 13 15 $ 16 $ 16 Europe 2 — — 3 11 8 Asia/Pacific 6 39 30 8 4 4 Mining 2 57 56 2 43 35 Latin America 17 26 27 431 117 87 Caterpillar Power Finance (2) 59 319 305 34 196 177 Total 123 $ 454 $ 431 493 $ 387 $ 327 (1) For the three months ended September 30, 2016, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers. (2) For the nine months ended September 30, 2017, 44 contracts with a pre-TDR recorded investment of $200 million and a post-TDR recorded investment of $200 million are related to four customers. During the nine months ended September 30, 2017, there were 241 contracts, primarily related to two customers, with a recorded investment of $16 million with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date in the Customer portfolio segment, all of which were in the Latin America finance receivable class.

Derivative Financial Instrume20

Derivative Financial Instruments and Risk Management (Tables)	9 Months Ended
	Sep. 30, 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 September 30, December 31, Designated derivatives Interest rate contracts Other assets $ 3 $ 4 Interest rate contracts Accrued expenses (1 ) (1 ) Cross currency contracts Other assets 8 29 Cross currency contracts Accrued expenses (41 ) (3 ) $ (31 ) $ 29 Undesignated derivatives Foreign exchange contracts Other assets $ 17 $ 12 Foreign exchange contracts Accrued expenses (8 ) (4 ) Cross currency contracts Other assets 25 27 $ 34 $ 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) $ — $ — $ (11 ) $ 11 Nine Months Ended Nine Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (1 ) $ 1 $ (11 ) $ 10
Schedule of effect of derivatives designated as cash flow hedging instruments in the Consolidated Statements of Profit	Cash Flow Hedges (Millions of dollars) Three Months Ended September 30, 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 $ (1 ) Interest expense $ 1 $ — Cross currency contracts (21 ) Other income (expense) (20 ) — Cross currency contracts Interest expense 1 — $ (22 ) $ (18 ) $ — Three Months Ended September 30, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 2 Interest expense $ — $ — Cross currency contracts (17 ) Other income (expense) (10 ) — $ (15 ) $ (10 ) $ — Nine Months Ended September 30, 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 $ (1 ) Interest expense $ 2 $ — Cross currency contracts (62 ) Other income (expense) (69 ) — Cross currency contracts Interest expense 3 — $ (63 ) $ (64 ) $ — Nine Months Ended September 30, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ (3 ) $ — Cross currency contracts (23 ) Other income (expense) (16 ) — $ (23 ) $ (19 ) $ —
Schedule of effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit	The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended September 30, Classification 2017 2016 Foreign exchange contracts Other income (expense) $ 14 $ (5 ) Cross currency contracts Other income (expense) (3 ) — $ 11 $ (5 ) Nine Months Ended September 30, Classification 2017 2016 Foreign exchange contracts Other income (expense) $ 25 $ (21 ) Cross currency contracts Other income (expense) (4 ) (12 ) $ 21 $ (33 )
Schedule of offsetting of derivative assets and liabilities	The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) September 30, December 31, Derivative Assets Gross Amount of Recognized Assets $ 53 $ 72 Gross Amounts Offset — — Net Amount of Assets (1) 53 72 Gross Amounts Not Offset (8 ) (7 ) Net Amount $ 45 $ 65 Derivative Liabilities Gross Amount of Recognized Liabilities $ (50 ) $ (8 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (50 ) (8 ) Gross Amounts Not Offset 8 7 Net Amount $ (42 ) $ (1 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Income/(Loss) (Tables)	9 Months Ended
	Sep. 30, 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 Available-for- sale securities Total Three Months Ended September 30, 2016 Balance at June 30, 2016 $ (790 ) $ 1 $ (2 ) $ (791 ) Other comprehensive income/(loss) before reclassifications (5 ) (10 ) 1 (14 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 7 — 7 Other comprehensive income/(loss) (5 ) (3 ) 1 (7 ) Balance at September 30, 2016 $ (795 ) $ (2 ) $ (1 ) $ (798 ) Three Months Ended September 30, 2017 Balance at June 30, 2017 $ (756 ) $ 2 $ 1 $ (753 ) Other comprehensive income/(loss) before reclassifications 151 (14 ) (1 ) 136 Amounts reclassified from accumulated other comprehensive (income)/loss — 11 — 11 Other comprehensive income/(loss) 151 (3 ) (1 ) 147 Balance at September 30, 2017 $ (605 ) $ (1 ) $ — $ (606 ) Nine Months Ended September 30, 2016 Balance at December 31, 2015 $ (897 ) $ — $ — $ (897 ) Other comprehensive income/(loss) before reclassifications 102 (15 ) (1 ) 86 Amounts reclassified from accumulated other comprehensive (income)/loss — 13 — 13 Other comprehensive income/(loss) 102 (2 ) (1 ) 99 Balance at September 30, 2016 $ (795 ) $ (2 ) $ (1 ) $ (798 ) Nine Months Ended September 30, 2017 Balance at December 31, 2016 $ (994 ) $ (1 ) $ — $ (995 ) Other comprehensive income/(loss) before reclassifications 389 (41 ) — 348 Amounts reclassified from accumulated other comprehensive (income)/loss — 41 — 41 Other comprehensive income/(loss) 389 — — 389 Balance at September 30, 2017 $ (605 ) $ (1 ) $ — $ (606 )
Reclassifications out of Accumulated other comprehensive income/(loss)	The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Nine Months Ended Classification of income (expense) 2017 2016 2017 2016 Cross currency contracts Other income (expense) $ (20 ) $ (10 ) $ (69 ) $ (16 ) Cross currency contracts Interest expense 1 — 3 — Interest rate contracts Interest expense 1 — 2 (3 ) Reclassifications before tax (18 ) (10 ) (64 ) (19 ) Tax (provision) benefit 7 3 23 6 Total reclassifications from Accumulated other comprehensive income/(loss) $ (11 ) $ (7 ) $ (41 ) $ (13 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the three months ended September 30 was as follows: (Millions of dollars) 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2017 Capital expenditures North America $ 338 $ 90 $ 77 $ 130 $ 11 $ 14,703 $ 187 Europe 68 20 9 19 2 4,084 25 Asia/Pacific 68 25 22 5 1 3,924 2 Latin America and CPF 101 2 41 10 20 6,371 6 Mining 71 12 12 36 4 2,372 88 Total Segments 646 149 161 200 38 31,454 308 Unallocated 35 (47 ) 50 — — 2,718 — Timing (8 ) (13 ) — 1 10 16 — Methodology — 37 (42 ) — — (225 ) — Inter-segment Eliminations (1) — — — — — (280 ) — Total $ 673 $ 126 $ 169 $ 201 $ 48 $ 33,683 $ 308 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 $ 310 $ 79 $ 70 $ 123 $ 10 $ 14,925 $ 281 Europe 68 21 8 21 1 3,834 44 Asia/Pacific 65 20 21 8 1 3,620 4 Latin America and CPF 122 31 36 15 17 7,270 11 Mining 73 14 11 45 (3 ) 2,734 19 Total Segments 638 165 146 212 26 32,383 359 Unallocated 21 (35 ) 32 — — 1,688 (3 ) Timing (8 ) (7 ) — 1 3 27 — Methodology — 23 (27 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 651 $ 146 $ 151 $ 213 $ 29 $ 33,615 $ 356 (1) Eliminations are primarily related to intercompany loans. Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows: (Millions of dollars) 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2017 Capital expenditures North America $ 989 $ 262 $ 224 $ 388 $ 25 $ 14,703 $ 722 Europe 200 62 27 60 — 4,084 71 Asia/Pacific 197 73 64 19 (5 ) 3,924 5 Latin America and CPF 335 48 124 33 56 6,371 48 Mining 213 57 37 107 (5 ) 2,372 168 Total Segments 1,934 502 476 607 71 31,454 1,014 Unallocated 100 (128 ) 139 — — 2,718 4 Timing (23 ) (20 ) — 1 11 16 — Methodology — 103 (116 ) — — (225 ) — Inter-segment Eliminations (1) — — — — — (280 ) — Total $ 2,011 $ 457 $ 499 $ 608 $ 82 $ 33,683 $ 1,018 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 $ 927 $ 255 $ 216 $ 350 $ 23 $ 14,925 $ 933 Europe 202 63 25 62 3 3,834 120 Asia/Pacific 190 56 62 21 6 3,620 73 Latin America and CPF 367 76 118 47 59 7,270 35 Mining 232 35 35 145 3 2,734 105 Total Segments 1,918 485 456 625 94 32,383 1,266 Unallocated 60 (99 ) 81 — 1 1,688 — Timing (25 ) (13 ) — 2 1 27 (1 ) Methodology — 66 (79 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 1,953 $ 439 $ 458 $ 627 $ 96 $ 33,615 $ 1,265 (1) Eliminations are primarily related to intercompany loans.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 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) September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 710 $ 710 $ 1,795 $ 1,795 1 Finance receivables, net (excluding finance leases (1) ) $ 19,797 $ 19,787 $ 20,101 $ 19,949 3 Note 3 Interest rate contracts: In a net receivable position $ 3 $ 3 $ 4 $ 4 2 Note 4 In a net payable position $ (1 ) $ (1 ) $ (1 ) $ (1 ) 2 Note 4 Cross currency contracts: In a receivable position $ 33 $ 33 $ 56 $ 56 2 Note 4 In a payable position $ (41 ) $ (41 ) $ (3 ) $ (3 ) 2 Note 4 Foreign currency contracts: In a receivable position $ 17 $ 17 $ 12 $ 12 2 Note 4 In a payable position $ (8 ) $ (8 ) $ (4 ) $ (4 ) 2 Note 4 Restricted cash and cash equivalents (2) $ 31 $ 31 $ 29 $ 29 1 Short-term borrowings $ (5,459 ) $ (5,459 ) $ (7,094 ) $ (7,094 ) 1 Long-term debt $ (21,629 ) $ (21,854 ) $ (20,537 ) $ (20,724 ) 2 Guarantees $ — $ — $ (1 ) $ (1 ) 3 Note 7 (1) As of September 30, 2017 and December 31, 2016 , represents finance leases with a net carrying value of $6.80 billion and $6.11 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail	$ 14,172	$ 13,565
Retail notes receivable	9,711	10,195
Wholesale notes receivable	3,753	3,457
Finance leases and installment sale contracts - Wholesale	118	103
Total gross finance receivables	27,754	27,320
Less: Unearned income	(814)	(765)
Recorded Investment in Finance Receivables	26,940	26,555
Less: Allowance for credit losses	(343)	(343)	$ (338)
Total finance receivables, net	26,597	26,212
Finance receivables held-for-sale [Member]
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail	$ 0	$ 4

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	$ 343	$ 338	$ 343	$ 343
Allowance for credit losses as a percent of our recorded investment in finance receivables			1.27%	1.29%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	343	338
Receivables written off	(119)	(158)
Recoveries on receivables previously written off	31	35
Provision for credit losses	80	133
Adjustment due to sale of receivables	(1)	(8)
Foreign currency translation adjustment	9	3
Balance at end of period	343	343
Allowance for Credit Losses
Individually evaluated for impairment			$ 100	$ 85
Collectively evaluated for impairment			243	258
Allowance, Ending Balance	343	338	343	343
Recorded Investment in Finance Receivables
Individually evaluated for impairment			869	786
Collectively evaluated for impairment			26,071	25,769
Recorded Investment in Finance Receivables, Ending Balance			26,940	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	(119)	(158)
Recoveries on receivables previously written off	31	35
Provision for credit losses	80	132
Adjustment due to sale of receivables	(1)	(8)
Foreign currency translation adjustment	9	3
Balance at end of period	331	331
Allowance for Credit Losses
Individually evaluated for impairment			100	85
Collectively evaluated for impairment			231	246
Allowance, Ending Balance	331	327	331	331
Recorded Investment in Finance Receivables
Individually evaluated for impairment			869	786
Collectively evaluated for impairment			18,704	18,859
Recorded Investment in Finance Receivables, Ending Balance			19,573	19,645
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	10	9	10	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	0	1
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	10	10
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			10	10
Allowance, Ending Balance	10	9	10	10
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,544	4,479
Recorded Investment in Finance Receivables, Ending Balance			4,544	4,479
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	2	2	2	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	0	0
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	2	2
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			2	2
Allowance, Ending Balance	$ 2	$ 2	2	2
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			2,823	2,431
Recorded Investment in Finance Receivables, Ending Balance			$ 2,823	$ 2,431

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 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	$ 805	$ 696
Current	26,135	25,859
Recorded Investment in Finance Receivables	26,940	26,555
91 Plus, Still Accruing	36	19
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	211	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	484	465
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,573	19,645
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	130	125
Current	7,916	8,051
Recorded Investment in Finance Receivables	8,046	8,176
91 Plus, Still Accruing	8	5
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	64	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	49	59
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	92	67
Current	2,642	2,388
Recorded Investment in Finance Receivables	2,734	2,455
91 Plus, Still Accruing	4	6
Customer | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	27	16
Customer | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	9	12
Customer | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	56	39
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	57	40
Current	2,299	1,944
Recorded Investment in Finance Receivables	2,356	1,984
91 Plus, Still Accruing	9	4
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	27	18
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	13	7
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	17	15
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	64	68
Current	1,682	1,756
Recorded Investment in Finance Receivables	1,746	1,824
91 Plus, Still Accruing	1	2
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	8	3
Customer | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	4	2
Customer | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	52	63
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	261	287
Current	1,672	1,808
Recorded Investment in Finance Receivables	1,933	2,095
91 Plus, Still Accruing	0	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	53	40
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	28	33
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	180	214
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	169	93
Current	2,589	3,018
Recorded Investment in Finance Receivables	2,758	3,111
91 Plus, Still Accruing	11	1
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	11	11
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	34	9
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	124	73
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,544	4,479
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,816	2,705
Recorded Investment in Finance Receivables	2,816	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	350	336
Recorded Investment in Finance Receivables	350	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	580	582
Recorded Investment in Finance Receivables	580	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	5	6
Recorded Investment in Finance Receivables	5	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	8	0
Current	783	848
Recorded Investment in Finance Receivables	791	848
91 Plus, Still Accruing	0	0
Dealer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	5	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	3	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	2,823	2,431
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	21	15
Current	1,666	1,303
Recorded Investment in Finance Receivables	1,687	1,318
91 Plus, Still Accruing	3	1
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	13	11
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	5	3
Caterpillar Purchased Receivables | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	3	1
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	2	1
Current	333	268
Recorded Investment in Finance Receivables	335	269
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	2	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	0	1
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	1	0
Current	396	475
Recorded Investment in Finance Receivables	397	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	400	366
Recorded Investment in Finance Receivables	400	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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 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	$ 469		$ 469		$ 530
Unpaid Principal Balance With No Allowance Recorded	484		484		528
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	400		400		256
Unpaid Principal Balance With An Allowance Recorded	413		413		265
Related Allowance With An Allowance Recorded	100		100		85
Recorded Investment, Total	869		869		786
Unpaid Principal Balance, Total	897		897		793
Related Allowance, Total	100		100		85
Average Recorded Investment With No Allowance Recorded	458	$ 504	512	$ 458
Interest Income Recognized With No Allowance Recorded	5	6	18	13
Average Recorded Investment With An Allowance Recorded	431	216	335	197
Interest Income Recognized With An Allowance Recorded	5	1	10	5
Average Recorded Investment, Total	889	720	847	655
Interest Income Recognized, Total	10	7	28	18
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	16		16		10
Unpaid Principal Balance With No Allowance Recorded	21		21		10
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	36		36		61
Unpaid Principal Balance With An Allowance Recorded	35		35		60
Related Allowance With An Allowance Recorded	13		13		22
Recorded Investment, Total	52		52		71
Unpaid Principal Balance, Total	56		56		70
Related Allowance, Total	13		13		22
Average Recorded Investment With No Allowance Recorded	14	24	12	19
Interest Income Recognized With No Allowance Recorded	1	0	1	1
Average Recorded Investment With An Allowance Recorded	44	42	52	28
Interest Income Recognized With An Allowance Recorded	0	0	1	0
Average Recorded Investment, Total	58	66	64	47
Interest Income Recognized, Total	1	0	2	1
Customer | Europe
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	47		47		49
Unpaid Principal Balance With No Allowance Recorded	47		47		48
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	8		8		7
Unpaid Principal Balance With An Allowance Recorded	8		8		7
Related Allowance With An Allowance Recorded	5		5		3
Recorded Investment, Total	55		55		56
Unpaid Principal Balance, Total	55		55		55
Related Allowance, Total	5		5		3
Average Recorded Investment With No Allowance Recorded	47	49	48	45
Interest Income Recognized With No Allowance Recorded	0	1	1	1
Average Recorded Investment With An Allowance Recorded	6	10	6	11
Interest Income Recognized With An Allowance Recorded	0	0	0	0
Average Recorded Investment, Total	53	59	54	56
Interest Income Recognized, Total	0	1	1	1
Customer | Asia/Pacific
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	32		32		3
Unpaid Principal Balance With No Allowance Recorded	31		31		2
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	25		25		50
Unpaid Principal Balance With An Allowance Recorded	25		25		50
Related Allowance With An Allowance Recorded	3		3		8
Recorded Investment, Total	57		57		53
Unpaid Principal Balance, Total	56		56		52
Related Allowance, Total	3		3		8
Average Recorded Investment With No Allowance Recorded	30	1	22	2
Interest Income Recognized With No Allowance Recorded	1	0	2	0
Average Recorded Investment With An Allowance Recorded	28	35	35	34
Interest Income Recognized With An Allowance Recorded	1	0	2	2
Average Recorded Investment, Total	58	36	57	36
Interest Income Recognized, Total	2	0	4	2
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	127		127		129
Unpaid Principal Balance With No Allowance Recorded	125		125		129
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	0		0		0
Unpaid Principal Balance With An Allowance Recorded	0		0		0
Related Allowance With An Allowance Recorded	0		0		0
Recorded Investment, Total	127		127		129
Unpaid Principal Balance, Total	125		125		129
Related Allowance, Total	0		0		0
Average Recorded Investment With No Allowance Recorded	128	90	128	84
Interest Income Recognized With No Allowance Recorded	1	2	5	3
Average Recorded Investment With An Allowance Recorded	0	19	0	15
Interest Income Recognized With An Allowance Recorded	0	0	0	0
Average Recorded Investment, Total	128	109	128	99
Interest Income Recognized, Total	1	2	5	3
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	60		60		68
Unpaid Principal Balance With No Allowance Recorded	60		60		68
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	92		92		93
Unpaid Principal Balance With An Allowance Recorded	104		104		104
Related Allowance With An Allowance Recorded	35		35		34
Recorded Investment, Total	152		152		161
Unpaid Principal Balance, Total	164		164		172
Related Allowance, Total	35		35		34
Average Recorded Investment With No Allowance Recorded	68	58	69	39
Interest Income Recognized With No Allowance Recorded	1	0	2	0
Average Recorded Investment With An Allowance Recorded	102	67	101	59
Interest Income Recognized With An Allowance Recorded	1	1	3	2
Average Recorded Investment, Total	170	125	170	98
Interest Income Recognized, Total	2	1	5	2
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	187		187		271
Unpaid Principal Balance With No Allowance Recorded	200		200		271
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	239		239		45
Unpaid Principal Balance With An Allowance Recorded	241		241		44
Related Allowance With An Allowance Recorded	44		44		18
Recorded Investment, Total	426		426		316
Unpaid Principal Balance, Total	441		441		315
Related Allowance, Total	44		44		18
Average Recorded Investment With No Allowance Recorded	171	282	233	269
Interest Income Recognized With No Allowance Recorded	1	3	7	8
Average Recorded Investment With An Allowance Recorded	251	43	141	50
Interest Income Recognized With An Allowance Recorded	3	0	4	1
Average Recorded Investment, Total	422	325	374	319
Interest Income Recognized, Total	4	$ 3	11	$ 9
Dealer
Financing Receivable, Impaired
Recorded Investment, Total	0		0		0
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	$ 0		$ 0		$ 0

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 689	$ 579
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	48	66
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	56	35
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	11	12
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	55	69
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	242	307
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	277	90
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status		0
Dealer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	3
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 0	$ 1

Finance Receivables (Details 6)

Finance Receivables (Details 6) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)contracts	Sep. 30, 2016USD ($)contracts	Sep. 30, 2017USD ($)contracts	Sep. 30, 2016USD ($)contracts	Dec. 31, 2016USD ($)
Financing Receivable, Modifications
Remaining commitments	$ 0		$ 0		$ 11
Finance receivables modified as TDRs
Number of Contracts | contracts	20	352	123	493
Pre-TDR Recorded Investment	$ 76	$ 152	$ 454	$ 387
Post-TDR Recorded Investment	$ 71	$ 118	$ 431	$ 327
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	11	2	37	15
Pre-TDR Recorded Investment	$ 4	$ 0	$ 13	$ 16
Post-TDR Recorded Investment	$ 5	$ 0	$ 13	$ 16
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts | contracts	1	0	2	3
Pre-TDR Recorded Investment	$ 0	$ 0	$ 0	$ 11
Post-TDR Recorded Investment	$ 0	$ 0	$ 0	$ 8
Customer | Asia/Pacific
Finance receivables modified as TDRs
Number of Contracts | contracts	0	4	6	8
Pre-TDR Recorded Investment	$ 0	$ 1	$ 39	$ 4
Post-TDR Recorded Investment	$ 0	$ 1	$ 30	$ 4
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts	0	1	2	2
Pre-TDR Recorded Investment	$ 0	$ 33	$ 57	$ 43
Post-TDR Recorded Investment	$ 0	$ 30	$ 56	$ 35
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	3	341	17	431
Pre-TDR Recorded Investment	$ 21	$ 105	$ 26	$ 117
Post-TDR Recorded Investment	$ 22	$ 74	$ 27	$ 87
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts			241
Post-TDR Recorded Investment			$ 16
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	5	4	59	34
Pre-TDR Recorded Investment	$ 51	$ 13	$ 319	$ 196
Post-TDR Recorded Investment	$ 44	$ 13	$ 305	$ 177
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	0
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	0
Amounts related to four customers | Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts		321
Pre-TDR Recorded Investment		$ 94
Post-TDR Recorded Investment		$ 64
Amounts related to four customers | Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts			44
Pre-TDR Recorded Investment			$ 200
Post-TDR Recorded Investment			$ 200

Derivative Financial Instrume30

Derivative Financial Instruments and Risk Management (Details) $ in Millions	Sep. 30, 2017USD ($)
Derivative
Deferred net gains, interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 2

Derivative Financial Instrume31

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value
Asset Fair Value	$ 53	$ 72
Liability Fair Value	(50)	(8)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	(31)	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	8	29
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(41)	(3)
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	34	35
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	17	12
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(8)	(4)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	$ 25	$ 27

Derivative Financial Instrume32

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivative
Derivative instruments, notional amount	$ 3,560	$ 2,630

Derivative Financial Instrume33

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Designated derivatives | Fair value hedges | Interest rate contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ 0	$ (11)	$ (1)	$ (11)
Gains (Losses) on Borrowings	0	11	1	10
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(22)	(15)	(63)	(23)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	(18)	(10)	(64)	(19)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Designated derivatives | Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(1)	2	(1)	0
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	0	2	(3)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Designated derivatives | Cash flow hedges | Cross currency contracts
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(21)	(17)	(62)	(23)
Designated derivatives | Cash flow hedges | Cross currency contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	1		3
Recognized in Earnings (Ineffective Portion)	0		0
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)	(20)	(10)	(69)	(16)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	11	(5)	21	(33)
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	14	(5)	25	(21)
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ (3)	$ 0	$ (4)	$ (12)

Derivative Financial Instrume34

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Offsetting Assets and Liabilities [Abstract]
Gross Amount of Recognized Assets	$ 53	$ 72
Gross Amounts Offset	0	0
Net Amount of Assets	53	72
Gross Amounts Not Offset	(8)	(7)
Net Amount	45	65
Gross Amount of Recognized Liabilities	(50)	(8)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(50)	(8)
Gross Amounts Not Offset	8	7
Net Amount	$ (42)	$ (1)

Accumulated Other Comprehensi35

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (753)	$ (791)	$ (995)	$ (897)
Other comprehensive income/(loss) before reclassifications	136	(14)	348	86
Amounts reclassified from accumulated other comprehensive (income)/loss	11	7	41	13
Other comprehensive income/(loss)	147	(7)	389	99
Balance at end of period	(606)	(798)	(606)	(798)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(756)	(790)	(994)	(897)
Other comprehensive income/(loss) before reclassifications	151	(5)	389	102
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0	0
Other comprehensive income/(loss)	151	(5)	389	102
Balance at end of period	(605)	(795)	(605)	(795)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	2	1	(1)	0
Other comprehensive income/(loss) before reclassifications	(14)	(10)	(41)	(15)
Amounts reclassified from accumulated other comprehensive (income)/loss	11	7	41	13
Other comprehensive income/(loss)	(3)	(3)	0	(2)
Balance at end of period	(1)	(2)	(1)	(2)
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	1	(2)	0	0
Other comprehensive income/(loss) before reclassifications	(1)	1	0	(1)
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0	0
Other comprehensive income/(loss)	(1)	1	0	(1)
Balance at end of period	$ 0	$ (1)	$ 0	$ (1)

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)		$ (4)	$ (3)	$ (10)	$ (10)
Interest		(169)	(151)	(499)	(458)
Reclassifications before tax		126	146	457	439
Tax (provision) benefit		(38)	(48)	(137)	(136)
Total reclassifications from Accumulated other comprehensive income/(loss)	[1]	86	97	315	299
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax		(18)	(10)	(64)	(19)
Tax (provision) benefit		7	3	23	6
Total reclassifications from Accumulated other comprehensive income/(loss)		(11)	(7)	(41)	(13)
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)		(20)	(10)	(69)	(16)
Interest		1	0	3	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	$ 0	$ 2	$ (3)
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Segment Reporting Information
External Revenues	$ 673	$ 651	$ 2,011	$ 1,953
Profit before income taxes	126	146	457	439
Interest Expense	169	151	499	458
Depreciation on equipment leased to others	201	213	608	627
Provision for credit losses	48	29	82	96
Assets	33,683		33,683		$ 33,615
Capital expenditures	308	356	1,018	1,265
Operating Segments
Segment Reporting Information
External Revenues	646	638	1,934	1,918
Profit before income taxes	149	165	502	485
Interest Expense	161	146	476	456
Depreciation on equipment leased to others	200	212	607	625
Provision for credit losses	38	26	71	94
Assets	31,454		31,454		32,383
Capital expenditures	308	359	1,014	1,266
Unallocated
Segment Reporting Information
External Revenues	35	21	100	60
Profit before income taxes	(47)	(35)	(128)	(99)
Interest Expense	50	32	139	81
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	1
Assets	2,718		2,718		1,688
Capital expenditures	0	(3)	4	0
Timing
Segment Reporting Information
External Revenues	(8)	(8)	(23)	(25)
Profit before income taxes	(13)	(7)	(20)	(13)
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	1	1	1	2
Provision for credit losses	10	3	11	1
Assets	16		16		27
Capital expenditures	0	0	0	(1)
Methodology
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	37	23	103	66
Interest Expense	(42)	(27)	(116)	(79)
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	(225)		(225)		(220)
Capital expenditures	0	0	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	0	0	0	0
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	(280)		(280)		(263)
Capital expenditures	0	0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	338	310	989	927
Profit before income taxes	90	79	262	255
Interest Expense	77	70	224	216
Depreciation on equipment leased to others	130	123	388	350
Provision for credit losses	11	10	25	23
Assets	14,703		14,703		14,925
Capital expenditures	187	281	722	933
Europe | Operating Segments
Segment Reporting Information
External Revenues	68	68	200	202
Profit before income taxes	20	21	62	63
Interest Expense	9	8	27	25
Depreciation on equipment leased to others	19	21	60	62
Provision for credit losses	2	1	0	3
Assets	4,084		4,084		3,834
Capital expenditures	25	44	71	120
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	68	65	197	190
Profit before income taxes	25	20	73	56
Interest Expense	22	21	64	62
Depreciation on equipment leased to others	5	8	19	21
Provision for credit losses	1	1	(5)	6
Assets	3,924		3,924		3,620
Capital expenditures	2	4	5	73
Latin America and CPF | Operating Segments
Segment Reporting Information
External Revenues	101	122	335	367
Profit before income taxes	2	31	48	76
Interest Expense	41	36	124	118
Depreciation on equipment leased to others	10	15	33	47
Provision for credit losses	20	17	56	59
Assets	6,371		6,371		7,270
Capital expenditures	6	11	48	35
Mining | Operating Segments
Segment Reporting Information
External Revenues	71	73	213	232
Profit before income taxes	12	14	57	35
Interest Expense	12	11	37	35
Depreciation on equipment leased to others	36	45	107	145
Provision for credit losses	4	(3)	(5)	3
Assets	2,372		2,372		$ 2,734
Capital expenditures	$ 88	$ 19	$ 168	$ 105

Guarantees (Details)

Guarantees (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Guarantor Obligations
Related recorded liability		$ 1
Guarantees, maximum potential amount of future payments	$ 87	43
SPC's assets in Consolidated Statements of Financial Position	1,100	1,090
SPC's liabilities in Consolidated Statements of Financial Position	1,100	$ 1,090
Maximum
Guarantor Obligations
Related recorded liability	$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Recurring basis | Level 2
Assets
Derivative financial instruments, net	$ 3	$ 64

Fair Value Measurements (Deta40

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Sep. 30, 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	$ 251	$ 137

Fair Value Measurements (Deta41

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	$ (5,459)	$ (7,094)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	710	1,795
Restricted cash and cash equivalents	31	29
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(5,459)	(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	17	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	(8)	(4)
Long-term debt	(21,854)	(20,724)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	19,787	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	710	1,795
Finance receivables, net (excluding finance leases)	19,797	20,101
Interest rate contracts, in a net receivable position	3	4
Foreign currency contracts, in a receivable position	17	12
Restricted cash and cash equivalents	31	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	(8)	(4)
Short-term borrowings	(5,459)	(7,094)
Long-term debt	(21,629)	(20,537)
Guarantees	0	(1)
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases	6,800	6,110
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign currency contracts, in a receivable position	33	56
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign currency contracts, in a payable position	(41)	(3)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign currency contracts, in a receivable position	33	56
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign currency contracts, in a payable position	$ (41)	$ (3)

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Estimated annual tax rate	30.00%	31.00%