Caterpillar Financial Services 10-K 15 Feb 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information Document - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 15, 2018
Document Information [Line Items]
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-K
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float	$ 0

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Retail finance		$ 1,235	$ 1,220	$ 1,243
Operating lease		985	1,015	1,012
Wholesale finance		307	264	285
Other, net		162	96	133
Total revenues		2,689	2,595	2,673
Expenses:
Interest		667	611	593
Depreciation on equipment leased to others		810	841	836
General, operating and administrative		429	391	415
Provision for credit losses		132	135	119
Other		46	41	64
Total expenses		2,084	2,019	2,027
Other income (expense)		(15)	(15)	(27)
Profit before income taxes		590	561	619
Provision (benefit) for income taxes		(4)	171	158
Profit of consolidated companies		594	390	461
Less: Profit attributable to noncontrolling interests		8	6	1
Profit	[1]	$ 586	$ 384	$ 460
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 594	$ 390	$ 461
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	414	(104)	(545)
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	(49)	15	2
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	45	(16)	3
Total Other comprehensive income (loss), net of tax	410	(105)	(540)
Comprehensive income (loss)	1,004	285	(79)
Less: Comprehensive income (loss) attributable to the noncontrolling interests	15	(1)	(6)
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 989	$ 286	$ (73)

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income Parenthetical (Parentheticals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ 106	$ (25)	$ (91)
Derivative financial instruments:
Gains (losses) deferred, tax	28	(8)	(1)
(Gains) losses reclassified to earnings, tax	$ (27)	$ 9	$ (2)

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 708	$ 1,795
Finance receivables, net (Note 2)	27,126	26,212
Notes receivable from Caterpillar (Note 14)	559	530
Equipment on operating leases, less accumulated depreciation (Note 3)	3,568	3,708
Deferred and refundable income taxes (Note 12)	174	119
Other assets (Note 4)	1,025	1,251
Total assets	33,160	33,615
Liabilities and shareholder's equity:
Payable to dealers and others	190	140
Payable to Caterpillar - other	85	49
Accrued expenses	274	172
Income taxes payable (Note 12)	158	32
Payable to Caterpillar – borrowings (Note 14)	1,638	1,637
Short-term borrowings (Note 7)	4,836	7,094
Current maturities of long-term debt (Note 8)	6,188	6,155
Long-term debt (Note 8)	15,918	14,382
Deferred income taxes and other liabilities (Note 12)	609	969
Total liabilities	29,896	30,630
Commitments and contingent liabilities (Note 11)
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	2,969	3,108
Accumulated other comprehensive income/(loss)	(592)	(995)
Noncontrolling interests	140	125
Total shareholder's equity	3,264	2,985
Total liabilities and shareholder's equity	$ 33,160	$ 33,615

Consolidated Statements of Fin6

Consolidated Statements of Financial Position Parenthetical (Parentheticals) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Shareholders' 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, 2014	$ 3,654	$ 745	$ 2	$ 3,139	$ (364)	$ 132
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Profit of consolidated companies	461			460		1
Dividend paid to Caterpillar	(600)			(600)
Foreign currency translation, net of tax	(545)				(538)	(7)
Derivative financial instruments, net of tax	5				5
Balance at Dec. 31, 2015	2,975	745	2	2,999	(897)	126
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Profit of consolidated companies	390			384		6
Dividend paid to Caterpillar	(275)			(275)
Foreign currency translation, net of tax	(104)				(97)	(7)
Derivative financial instruments, net of tax	(1)				(1)
Balance at Dec. 31, 2016	2,985	745	2	3,108	(995)	125
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Profit of consolidated companies	594			586		8
Dividend paid to Caterpillar	(725)			(725)
Foreign currency translation, net of tax	414				407	7
Derivative financial instruments, net of tax	(4)				(4)
Balance at Dec. 31, 2017	$ 3,264	$ 745	$ 2	$ 2,969	$ (592)	$ 140

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Profit of consolidated companies	$ 594	$ 390	$ 461
Adjustments for non-cash items:
Depreciation and amortization	820	851	848
Amortization of receivables purchase discount	(253)	(207)	(222)
Provision for credit losses	132	135	119
Other, net	57	72	29
Changes in assets and liabilities:
Receivables from others	70	(69)	(43)
Other receivables/payables with Caterpillar	26	1	(17)
Payable to dealers and others	(66)	36	83
Accrued interest payable	11	(21)	7
Accrued expenses and other liabilities, net	(261)	71	76
Income taxes payable	102	138	(74)
Settlements of designated derivatives	(9)	44	4
Debt exchange premium	0	(33)	0
Net cash provided by operating activities	1,223	1,408	1,271
Cash flows from investing activities:
Capital expenditures for equipment on operating leases and other capital expenditures	(1,373)	(1,636)	(1,461)
Proceeds from disposals of equipment	1,003	789	583
Additions to finance receivables	(13,920)	(11,862)	(12,928)
Collections of finance receivables	14,353	12,341	12,225
Net changes in Caterpillar purchased receivables	(732)	399	745
Proceeds from sales of receivables	127	127	136
Net change in variable lending to Caterpillar	(51)	30	0
Additions to other notes receivable with Caterpillar	(53)	(146)	(134)
Collections on other notes receivable with Caterpillar	75	76	58
Restricted cash and cash equivalents activity, net	5	(11)	(7)
Settlements of undesignated derivatives	45	(25)	(58)
Other, net	(6)	5	0
Net cash provided by (used for) investing activities	(527)	87	(841)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	40	1,492	0
Proceeds from borrowings with Caterpillar	0	253	0
Payments on borrowings with Caterpillar	(49)	(1,203)	0
Proceeds from debt issued (original maturities greater than three months)	8,702	5,109	5,129
Payments on debt issued (original maturities greater than three months)	(6,919)	(6,032)	(7,775)
Short-term borrowings, net (original maturities three months or less)	(2,854)	(61)	3,018
Dividend paid to Caterpillar	(725)	(275)	(600)
Net cash provided by (used for) financing activities	(1,805)	(717)	(228)
Effect of exchange rate changes on cash and cash equivalents	22	1	(43)
Increase/(decrease) in cash and cash equivalents	(1,087)	779	159
Cash and cash equivalents at beginning of period	1,795	1,016	857
Cash and cash equivalents at end of period	708	1,795	1,016
Cash paid for interest	647	608	579
Cash (received) paid for taxes	$ 159	(61)	125
Cash and cash equivalents policy	All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.
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	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Nature of Operations Caterpillar Financial Services Corporation, a Delaware corporation organized in 1981 (together with its subsidiaries, "Cat Financial," "the Company," "we" and "our"), is a wholly-owned finance subsidiary of Caterpillar Inc. (together with its other subsidiaries, "Caterpillar" or "Cat"). Our primary business is to provide retail and wholesale financing alternatives for Caterpillar products to customers and dealers around the world. Retail financing is primarily comprised of financing of Caterpillar equipment, machinery and engines. In addition, we also provide financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. We also provide wholesale financing to Caterpillar dealers and purchase short-term receivables from Caterpillar. The various financing plans offered by Cat Financial are primarily designed to increase the opportunity for sales of Caterpillar products and generate financing income for Cat Financial. A significant portion of our activities is conducted in North America. However, we have additional offices and subsidiaries in Latin America, Asia/Pacific, Europe, Africa and the Middle East. B. Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs) in which Cat Financial is the primary beneficiary. We consolidate all 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 11 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. Certain amounts for prior years have been reclassified to conform with current-year financial statement presentation. C. Recognition of Earned Income Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and operating lease revenue is suspended and the account 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 account becomes current and collection of remaining amounts is considered probable. We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate. D. Depreciation Depreciation for equipment on operating leases is recognized using the straight-line method over the lease term, typically one to seven years. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. E. Residual Values The residuals for leases classified as operating leases are included in Equipment on operating leases. The residuals for leases classified as finance leases, in accordance with lease accounting, are included in finance receivables. During the term of the equipment on operating leases, we evaluate our depreciation on a regular basis taking into consideration expected residual values at lease termination. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. For finance leases, residual value adjustments are recognized through a reduction of finance revenue. We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, the fair value of the equipment on operating leases is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value. F. Derivative Financial Instruments Our earnings and cash flows 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. All derivatives are recorded at fair value. See Note 9 for additional information. G. 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 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. Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). The amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. H. Income Taxes The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year. I. Foreign Currency Translation The functional currency for most of our subsidiaries is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in the Consolidated Statements of Profit. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income/(loss) in the Consolidated Statements of Financial Position. J. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates. K. 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 was 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 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 guidance was effective January 1, 2018, and will be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of January 1, 2018. 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. An implementation team is in the process of evaluating the effect of the new guidance on our financial statements. We plan to adopt the new guidance effective January 1, 2019. 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 was effective January 1, 2018, and 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 was effective January 1, 2018, and 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, resulting in a cumulative-effect adjustment to opening retained earnings in the period of adoption. The guidance is effective January 1, 2019, with early adoption permitted. We have completed the evaluation of the impact of the new standard and do not expect the adoption to have a material impact on our financial statements.

Finance Receivables

Finance Receivables	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Finance Receivables	FINANCE RECEIVABLES A summary of finance receivables included in the Consolidated Statements of Financial Position as of December 31, was as follows: (Millions of dollars) 2017 2016 Finance leases and installment sale contracts – Retail (1) $ 14,647 $ 13,565 Retail notes receivable 9,417 10,195 Wholesale notes receivable 4,161 3,457 Finance leases and installment sale contracts – Wholesale 119 103 28,344 27,320 Less: Unearned income (853 ) (765 ) Recorded investment in finance receivables 27,491 26,555 Less: Allowance for credit losses (365 ) (343 ) Total finance receivables, net $ 27,126 $ 26,212 (1) Includes $4 million of finance receivables classified as held for sale as of December 31, 2016. Maturities of our finance receivables, as of December 31, 2017 , reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail Installment Sale Contracts Wholesale Installment Sale Contracts Retail Finance Leases Wholesale Finance Leases Retail Notes Wholesale Notes Total 2018 $ 2,798 $ 10 $ 2,758 $ 22 $ 3,578 $ 3,955 $ 13,121 2019 2,031 8 1,920 16 1,510 121 5,606 2020 1,281 6 1,078 9 1,445 77 3,896 2021 629 2 444 5 1,160 6 2,246 2022 212 — 153 2 867 2 1,236 Thereafter 26 — 57 2 857 — 942 Total 6,977 26 6,410 56 9,417 4,161 27,047 Guaranteed residual value — — 425 31 — — 456 Unguaranteed residual value — — 835 6 — — 841 Total $ 6,977 $ 26 $ 7,670 $ 93 $ 9,417 $ 4,161 $ 28,344 Our finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity and we also sell finance receivables to third parties to mitigate the concentration of credit risk with certain customers. Accordingly, this presentation should not be regarded as a forecast of future cash collections. Our allowance for credit losses as of December 31, 2017 was $365 million or 1.33 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) December 31, 2017 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 331 $ 10 $ 2 $ 343 Receivables written off (157 ) — — (157 ) Recoveries on receivables previously written off 43 — — 43 Provision for credit losses 129 (1 ) 1 129 Adjustment due to sale of receivables (1 ) — — (1 ) Foreign currency translation adjustment 8 — — 8 Balance at end of year $ 353 $ 9 $ 3 $ 365 Individually evaluated for impairment $ 149 $ — $ — $ 149 Collectively evaluated for impairment 204 9 3 216 Ending Balance $ 353 $ 9 $ 3 $ 365 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 942 $ — $ — $ 942 Collectively evaluated for impairment 18,847 4,241 3,461 26,549 Ending Balance $ 19,789 $ 4,241 $ 3,461 $ 27,491 (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 of finance receivables by aging category. (Millions of dollars) December 31, 2017 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 71 $ 15 $ 42 $ 128 $ 8,040 $ 8,168 $ 8 Europe 21 10 46 77 2,718 2,795 13 Asia/Pacific 18 7 14 39 2,520 2,559 5 Mining 3 1 60 64 1,751 1,815 9 Latin America 37 55 142 234 1,546 1,780 — Caterpillar Power Finance 20 32 144 196 2,476 2,672 1 Dealer North America — — — — 2,394 2,394 — Europe — — — — 417 417 — Asia/Pacific — — — — 578 578 — Mining — — — — 5 5 — Latin America — 72 — 72 773 845 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 24 5 2 31 2,010 2,041 2 Europe 1 2 1 4 344 348 — Asia/Pacific — — — — 630 630 — Mining — — — — — — — Latin America — — — — 437 437 — Caterpillar Power Finance — — — — 5 5 — Total $ 195 $ 199 $ 451 $ 845 $ 26,646 $ 27,491 $ 38 (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 December 31, 2017 , 2016 and 2015 , for the Dealer and Caterpillar Purchased Receivables portfolio segments. Our recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: (Millions of dollars) As of December 31, 2017 As of December 31, 2016 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 19 $ 19 $ — $ 10 $ 10 $ — Europe 45 45 — 49 48 — Asia/Pacific 34 33 — 3 2 — Mining 121 121 — 129 129 — Latin America 45 45 — 68 68 — Caterpillar Power Finance 160 172 — 271 271 — Total $ 424 $ 435 $ — $ 530 $ 528 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 44 $ 43 $ 17 $ 61 $ 60 $ 22 Europe 9 8 5 7 7 3 Asia/Pacific 8 8 2 50 50 8 Mining — — — — — — Latin America 95 106 42 93 104 34 Caterpillar Power Finance 362 365 83 45 44 18 Total $ 518 $ 530 $ 149 $ 256 $ 265 $ 85 Total Impaired Finance Receivables North America $ 63 $ 62 $ 17 $ 71 $ 70 $ 22 Europe 54 53 5 56 55 3 Asia/Pacific 42 41 2 53 52 8 Mining 121 121 — 129 129 — Latin America 140 151 42 161 172 34 Caterpillar Power Finance 522 537 83 316 315 18 Total $ 942 $ 965 $ 149 $ 786 $ 793 $ 85 (Millions of dollars) Year Ended Year Ended Year Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 13 $ 1 $ 18 $ 1 $ 12 $ 1 Europe 48 1 46 1 42 1 Asia/Pacific 24 2 2 — 2 — Mining 126 7 98 4 75 3 Latin America 64 3 47 1 31 — Caterpillar Power Finance 221 9 270 11 170 5 Total $ 496 $ 23 $ 481 $ 18 $ 332 $ 10 Impaired Finance Receivables With An Allowance Recorded North America $ 49 $ 1 $ 34 $ — $ 9 $ — Europe 6 — 11 1 14 1 Asia/Pacific 31 2 37 3 44 2 Mining — — 13 — 39 1 Latin America 99 4 66 2 56 3 Caterpillar Power Finance 180 6 50 1 115 3 Total $ 365 $ 13 $ 211 $ 7 $ 277 $ 10 Total Impaired Finance Receivables North America $ 62 $ 2 $ 52 $ 1 $ 21 $ 1 Europe 54 1 57 2 56 2 Asia/Pacific 55 4 39 3 46 2 Mining 126 7 111 4 114 4 Latin America 163 7 113 3 87 3 Caterpillar Power Finance 401 15 320 12 285 8 Total $ 861 $ 36 $ 692 $ 25 $ 609 $ 20 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 December 31, 2017 and 2016 , there were no finance receivables on non-accrual status for the Dealer portfolio segment. As of December 31, 2017 and 2016 , there was $1 million in finance receivables on non-accrual status for the Caterpillar Purchased Receivables portfolio segment, all of which was in the Europe finance receivable class. The recorded investment in Customer finance receivables on non-accrual status as of December 31, was as follows: (Millions of dollars) 2017 2016 North America $ 38 $ 66 Europe 37 35 Asia/Pacific 10 12 Mining 63 69 Latin America 192 307 Caterpillar Power Finance 343 90 Total $ 683 $ 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 December 31, 2017 , there were no additional funds committed to lend to a borrower whose terms have been modified in a TDR. As of December 31, 2016 , there were $11 million of additional funds committed to lend to a borrower whose terms have been modified in a TDR. There were no finance receivables modified as TDRs during the years ended December 31, 2017 , 2016 and 2015 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2017 , 2016 and 2015 , were as follows: (Dollars in millions) Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 43 $ 34 $ 35 Europe 4 1 1 Asia/Pacific 10 39 31 Mining 2 57 56 Latin America 17 26 27 Caterpillar Power Finance (1) 68 422 407 Total 144 $ 579 $ 557 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 25 $ 25 $ 25 Europe 43 12 9 Asia/Pacific 31 29 28 Mining 4 74 66 Latin America (2) 437 118 82 Caterpillar Power Finance 34 196 177 Total 574 $ 454 $ 387 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 14 $ 1 $ 1 Europe 23 2 2 Asia/Pacific 21 26 26 Mining 4 65 65 Latin America 11 1 2 Caterpillar Power Finance 21 259 242 Total 94 $ 354 $ 338 (1) In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million are related to six customers. (2) In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2017 , 2016 and 2015 , which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Year Ended Year Ended Year Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 4 $ 3 5 $ 2 7 $ 1 Europe 1 — 5 2 — — Asia/Pacific 4 1 1 — — — Latin America (1) 243 17 4 1 12 1 Total 252 $ 21 15 $ 5 19 $ 2 (1) In Latin America, 238 contracts with a post-TDR recorded investment of $16 million are related to two customers for the year ended December 31, 2017.

Equipment on Operating Leases

Equipment on Operating Leases	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
Equipment on Operating Leases	EQUIPMENT ON OPERATING LEASES Components of equipment on operating leases, less accumulated depreciation as of December 31, were as follows: (Millions of dollars) 2017 2016 Equipment on operating leases, at cost $ 5,204 $ 5,395 Less: Accumulated depreciation (1,636 ) (1,687 ) Equipment on operating leases, net $ 3,568 $ 3,708 At December 31, 2017 , scheduled minimum rental payments for operating leases were as follows: 2018 2019 2020 2021 2022 Thereafter Total $ 799 $ 517 $ 264 $ 113 $ 43 $ 11 $ 1,747

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2017
Other Assets [Abstract]
Other Assets	OTHER ASSETS The components of other assets as of December 31, were as follows: (Millions of dollars) 2017 2016 Customer and other miscellaneous receivables $ 457 $ 417 Collateral held for resale, at net realizable value 432 654 Other (1) 136 180 Total other assets $ 1,025 $ 1,251 (1) Includes $31 million and $21 million of other receivables from Caterpillar as of December 31, 2017 and 2016, respectively.

Concentration of Credit Risk

Concentration of Credit Risk	12 Months Ended
	Dec. 31, 2017
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	CONCENTRATION OF CREDIT RISK Financial instruments with potential credit risk consist primarily of finance receivables. Additionally, to a lesser extent, we have potential credit risk associated with counterparties to derivative contracts. As of December 31, 2017 and 2016 , receivables from customers in construction-related industries made up approximately one-third of our total portfolio of which customers in North America were approximately 60 percent. No single customer or dealer represented a significant concentration of credit risk. We typically maintain a security interest in retail financed equipment and in some instances, wholesale financed equipment. We also require physical damage insurance coverage on all financed equipment. See Note 16 for further information concerning business segments. For derivative contracts, collateral is generally not required of the counterparties or of us. 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. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. The master netting agreements reduce the amount of loss the company would incur should the counterparties fail to meet their obligations. At December 31, 2017 and 2016 , the maximum exposure to credit loss, was $22 million and $72 million , respectively, before the application of any master netting agreements. See Note 9 for further information concerning derivatives.

Credit Commitments

Credit Commitments	12 Months Ended
	Dec. 31, 2017
Credit Commitments [Abstract]
Credit Commitments	CREDIT COMMITMENTS Revolving credit facilities We have three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and us for general liquidity purposes. Based on management's allocation decision, which can be revised from time to time, the portion of the Credit Facility available to us as of December 31, 2017 was $7.75 billion . • The 364-day facility of $3.15 billion (of which $2.33 billion is available to us) expires in September 2018. • The three-year facility, as amended in September 2017, of $2.73 billion (of which $2.01 billion is available to us) expires in September 2020. • The five-year facility, as amended in September 2017, of $4.62 billion (of which $3.41 billion is available to us) expires in September 2022. At December 31, 2017 , Caterpillar’s consolidated net worth was $13.72 billion , which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined in the Credit Facility as the consolidated shareholders' equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income/(loss). At December 31, 2017 , our covenant interest coverage ratio was 1.88 to 1 . This is above the 1.15 to 1 minimum ratio, calculated as (1) profit excluding income taxes, interest expense and net gain/(loss) from interest rate derivatives to (2) interest expense, calculated at the end of each calendar quarter for the rolling four quarter period then most recently ended, required by the Credit Facility. In addition, at December 31, 2017 , our six-month covenant leverage ratio was 7.38 to 1 and our year-end covenant leverage ratio was 7.71 to 1 . This is below the maximum ratio of debt to net worth of 10 to 1 , calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility. In the event that either Caterpillar or we do not meet one or more of our respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants. Additionally, in such event, certain of our other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable, may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings. At December 31, 2017 , there were no borrowings under the Credit Facility. Bank borrowings Available credit lines with banks as of December 31, 2017 totaled $4.59 billion . These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our non-U.S. subsidiaries for local funding requirements. As of December 31, 2017 and 2016 , we had $1.48 billion and $1.42 billion , respectively, outstanding against these credit lines and were in compliance with all debt covenants under these credit lines. The remaining available credit commitments may be withdrawn any time at the lenders' discretion. Variable denomination floating rate demand notes We obtain funding from the sale of variable denomination floating rate demand notes, which may be redeemed at any time at the option of the holder without any material restriction. We do not hold reserves to fund the payment of the demand notes. The notes are offered on a continuous basis. As of December 31, 2017 and 2016 , there was $481 million and $556 million of variable denomination floating rate demand notes outstanding. The maximum amount of variable denomination floating rate demand notes that we may have outstanding at any time may not exceed $1.25 billion . Notes receivable from/payable to Caterpillar Under our variable amount and term lending agreements and other notes receivable with Caterpillar, we may borrow up to $2.79 billion from Caterpillar and Caterpillar may borrow up to $2.14 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years . We had notes payable of $1.64 billion and notes receivable of $559 million outstanding under these agreements as of December 31, 2017 , compared with notes payable of $1.64 billion and notes receivable of $530 million as of December 31, 2016 . Committed credit facility We extended a $2 billion committed credit facility to Caterpillar, which expires in February 2019. We receive a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. At December 31, 2017 , there were no borrowings under this credit facility.

Short-Term Borrowings

Short-Term Borrowings	12 Months Ended
	Dec. 31, 2017
Short-term Debt [Abstract]
Short-Term Borrowings	SHORT-TERM BORROWINGS Short-term borrowings outstanding as of December 31, were comprised of the following: (Millions of dollars) 2017 2016 Balance Avg. Rate Balance Avg. Rate Commercial paper, net $ 3,680 1.1% $ 5,985 0.9% Bank borrowings 675 5.2% 553 7.5% Variable denomination floating rate demand notes 481 1.1% 556 0.9% Total $ 4,836 $ 7,094

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2017
Long-term Debt, Unclassified [Abstract]
Long-Term Debt	LONG-TERM DEBT During 2017 , we issued $7.29 billion of medium-term notes, of which $4.89 billion were at fixed interest rates and $2.40 billion were at floating interest rates, primarily indexed to LIBOR. At December 31, 2017 , the outstanding medium-term notes had remaining maturities ranging up to 9 years . Debt issuance costs are capitalized and amortized to Interest expense using the straight-line method over the term of the debt issuance. The balance of our medium-term notes contains unamortized fair value adjustments for debt in a fair value hedge relationship. Long-term debt outstanding as of December 31, was comprised of the following: (Millions of dollars) 2017 2016 Balance Avg. Rate Balance Avg. Rate Medium-term notes $ 21,362 2.5% $ 19,731 2.4% Unamortized discount and debt issuance costs (59 ) (64 ) Medium-term notes, net 21,303 19,667 Bank borrowings 803 5.0% 870 4.5% Total $ 22,106 $ 20,537 Long-term debt outstanding as of December 31, 2017 , matures as follows: ( Millions of dollars) 2018 $ 6,188 2019 5,681 2020 4,290 2021 1,740 2022 2,048 Thereafter 2,159 Total $ 22,106 The above table includes $148 million of medium-term notes that could be called by us at some point in the future at par. During September 2016, $381 million of medium-term notes with varying interest rates and maturity dates were exchanged for $366 million of 1.93 percent medium-term notes due in 2021 and $15 million in cash. In addition, a debt exchange premium of $33 million was paid.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	12 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments and Risk Management	DERIVATIVE FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. Risk management practices, including the use of financial derivative instruments, are presented to our Board of Directors and the Audit Committee of the Caterpillar Inc. Board of Directors at least annually. All derivatives are recognized on the Consolidated Statements of Financial Position at their fair value. On the date the derivative contract is entered into, the derivative instrument is (1) designated as a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) designated as a hedge of a forecasted transaction or the variability of cash flows (cash flow hedge) or (3) undesignated. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in Accumulated other comprehensive income/(loss) (AOCI), to the extent effective, on the Consolidated Statements of Financial Position until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged on the Consolidated Statements of Cash Flows. Cash flows from undesignated derivative financial instruments are included in the investing category on the Consolidated Statements of Cash Flows. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities on the Consolidated Statements of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively in accordance with derecognition criteria for hedge accounting. Foreign currency exchange rate risk We have balance sheet positions and expected future transactions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. In managing foreign currency risk, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward, option and cross currency contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed rate assets and liabilities. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. We have a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of our debt portfolio with the interest rate profile of our finance receivable portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the finance receivable portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. As of December 31, 2017 , less than $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 December 31, Consolidated Statements of Financial Position Location 2017 2016 Designated derivatives Interest rate contracts Other assets $ 3 $ 4 Interest rate contracts Accrued expenses (2 ) (1 ) Cross currency contracts Other assets 7 29 Cross currency contracts Accrued expenses (57 ) (3 ) $ (49 ) $ 29 Undesignated derivatives Foreign exchange contracts Other assets $ 12 $ 12 Foreign exchange contracts Accrued expenses (9 ) (4 ) Cross currency contracts Other assets — 27 $ 3 $ 35 The total notional amount of our derivative instruments was $3.69 billion and $2.63 billion as of December 31, 2017 and 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) Year Ended December 31, 2017 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (2 ) $ 2 Year Ended December 31, 2016 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (12 ) $ 11 Year Ended December 31, 2015 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (27 ) $ 26 Cash Flow Hedges (Millions of dollars) Year Ended December 31, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 3 $ — Cross currency contracts (77 ) Other income (expense) (81 ) — Cross currency contracts Interest expense 6 — $ (77 ) $ (72 ) $ — Year Ended December 31, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 8 Interest expense $ (3 ) $ — Cross currency contracts 15 Other income (expense) 28 — $ 23 $ 25 $ — Year Ended December 31, 2015 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 2 Interest expense $ (6 ) $ — Cross currency contracts 1 Other income (expense) 1 — $ 3 $ (5 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows for the years ended December 31: (Millions of dollars) Classification 2017 2016 2015 Foreign exchange contracts Other income (expense) $ 14 $ (10 ) $ (50 ) Cross currency contracts Other income (expense) (5 ) (14 ) 16 $ 9 $ (24 ) $ (34 ) 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 December 31, 2017 , 2016 and 2015 , no cash collateral was received or pledged under the master netting agreements. The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event as of December 31, was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) 2017 2016 Derivative Assets Gross Amount of Recognized Assets $ 22 $ 72 Gross Amounts Offset — — Net Amount of Assets (1) 22 72 Gross Amounts Not Offset (10 ) (7 ) Net Amount $ 12 $ 65 Derivative Liabilities Gross Amount of Recognized Liabilities $ (68 ) $ (8 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (68 ) (8 ) Gross Amounts Not Offset 10 7 Net Amount $ (58 ) $ (1 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	12 Months Ended
	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income/(Loss)	ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Comprehensive income/(loss) and its components are presented in the Consolidated Statements of Comprehensive Income. Changes in Accumulated other comprehensive income/(loss), net of tax, included in the Consolidated Statements of Changes in Shareholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Total Balance at December 31, 2014 $ (359 ) $ (5 ) $ (364 ) Other comprehensive income/(loss) before reclassifications (538 ) 2 (536 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 3 3 Other comprehensive income/(loss) (538 ) 5 (533 ) Balance at December 31, 2015 $ (897 ) $ — $ (897 ) Other comprehensive income/(loss) before reclassifications (97 ) 15 (82 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (16 ) (16 ) Other comprehensive income/(loss) (97 ) (1 ) (98 ) Balance at December 31, 2016 $ (994 ) $ (1 ) $ (995 ) Other comprehensive income/(loss) before reclassifications 407 (49 ) 358 Amounts reclassified from accumulated other comprehensive (income)/loss — 45 45 Other comprehensive income/(loss) 407 (4 ) 403 Balance at December 31, 2017 $ (587 ) $ (5 ) $ (592 ) The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit during the years ended December 31, 2017 , 2016 and 2015 was as follows: (Millions of dollars) Classification of income (expense) 2017 2016 2015 Cross currency contracts Other income (expense) $ (81 ) $ 28 $ 1 Cross currency contracts Interest expense 6 — — Interest rate contracts Interest expense 3 (3 ) (6 ) Reclassifications before tax (72 ) 25 (5 ) Tax (provision) benefit 27 (9 ) 2 Total reclassifications from Accumulated other comprehensive income/(loss) $ (45 ) $ 16 $ (3 )

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	COMMITMENTS AND CONTINGENT LIABILITIES 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 December 31, 2017 and 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 $91 million and $43 million , at December 31, 2017 and 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 December 31, 2017 and 2016 , the SPC’s assets of $1.11 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 $1.11 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. We are party to agreements in the normal course of business with selected customers and Caterpillar dealers in which we commit to provide a set dollar amount of financing on a pre-approved basis. We also provide lines of credit to certain customers and Caterpillar dealers, of which a portion remains unused as of the end of the period. Commitments and lines of credit generally have fixed expiration dates or other termination clauses. It has been our experience that not all commitments and lines of credit will be used. Management applies the same credit policies when making commitments and granting lines of credit as it does for any other financing. We do not require collateral for these commitments/lines, but if credit is extended, collateral may be required upon funding. As of December 31, 2017 and 2016 , the amount of the unused commitments and lines of credit for dealers was $11.21 billion and $12.97 billion , respectively. As of December 31, 2017 and 2016 , the amount of the unused commitments and lines of credit for customers was $3.09 billion and $3.34 billion , respectively. We had a commitment to purchase the corporate headquarters building for $91 million as of December 31, 2017 . The building purchase was closed on January 4, 2018. 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	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES On December 22, 2017, U.S. tax legislation was enacted containing a broad range of tax reform provisions including a corporate tax rate reduction and changes in the U.S. taxation of non-U.S. earnings. We have not completed our accounting for the income tax effects of U.S. tax reform. However, we have made a reasonable estimate of the 2017 financial statement impact as of January 18, 2018, and recognized a provisional net benefit of $151 million . We will continue to update our calculations as additional required information is prepared and analyzed, interpretations and assumptions are refined, additional guidance is issued, and due to actions we may take as a result of the legislation. These updates could significantly impact the provision for income taxes, the amount of taxes payable, and the deferred tax asset and liability balances. The provisionally estimated net benefit includes a $334 million write-down of net deferred tax liabilities to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent beginning January 1, 2018. We are still analyzing certain aspects of the law and refining our calculations of basis differences as of December 31, 2017, which could affect the measurement of these balances. The provisionally estimated net benefit includes $183 million for the estimated cost of a mandatory deemed repatriation of non-U.S. earnings. The resulting tax liability, net of available foreign tax credits, is $131 million , payable over eight years and is included in Income taxes payable in the Consolidated Statements of Financial Position. The U.S. federal tax cost for the mandatory deemed repatriation is computed at 15.5 percent for non-U.S. earnings held in liquid assets and 8 percent for non-liquid assets, reduced by applicable foreign tax credits. These estimates are provisional due to additional information and analysis required to determine cumulative taxable earnings since 1986 for non-U.S. subsidiaries at two separate points in time and to determine the amount of earnings that are held in liquid versus non-liquid assets as defined in the new legislation at several different measurement periods. In addition, information is being gathered and analyzed to support available foreign tax credits including estimates of credit utilization and valuation allowance considerations for any remaining foreign tax credit carryforward. Due to uncertainty about aspects of the tax law, we have made various assumptions to determine our reasonable estimate that we expect to refine as additional guidance is issued. As a result of U.S. tax reform legislation, distributions of profits from non-U.S. subsidiaries are expected to have minimal U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed in certain jurisdictions. We have not recorded a deferred tax liability for withholding taxes in non-U.S. jurisdictions where earnings are considered indefinitely reinvested. If management intentions or U.S. tax law changes in the future, there could be an impact on the provision for income taxes to record an incremental tax liability in the period the change occurs. A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: (Millions of dollars) 2017 2016 2015 Taxes computed at U.S. statutory rates $ 206 35.0 % $ 196 35.0 % $ 217 35.0 % (Decreases) increases in taxes resulting from: State Income Tax, net of Federal Tax 2 0.3 % 2 0.4 % 3 0.5 % Subsidiaries' results subject to tax rates other than U.S. statutory rates (31 ) (5.3 )% (36 ) (6.5 )% (25 ) (4.0 )% Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (1) (16 ) (2.7 )% 2 0.3 % (39 ) (6.3 )% Foreign currency translation taxed at non-U.S. subsidiaries (12 ) (2.0 )% 13 2.3 % 6 0.9 % U.S. deferred tax rate change (334 ) (56.6 )% — — % — — % Mandatory deemed repatriation of non-U.S. earnings 183 31.0 % — — % — — % Other, net (2 ) (0.4 )% (6 ) (1.1 )% (4 ) (0.6 )% Provision (benefit) for income taxes $ (4 ) (0.7 )% $ 171 30.4 % $ 158 25.5 % (1) Excludes provisionally estimated net benefit from 2017 U.S. tax reform. The components of Profit before income taxes for the years ended December 31, were as follows: (Millions of dollars) 2017 2016 2015 U.S. $ 285 $ 249 $ 230 Non-U.S. 305 312 389 Total $ 590 $ 561 $ 619 Profit before income taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above. The components of the Provision (benefit) for income taxes were as follows for the years ended December 31: (Millions of dollars) 2017 2016 2015 Current income tax provision (benefit): U.S. $ 157 $ (18 ) $ (21 ) Non-U.S. 102 111 109 State (U.S.) 1 — 2 260 93 90 Deferred income tax provision (benefit): U.S. (239 ) 90 45 Non-U.S. (28 ) (15 ) 21 State (U.S.) 3 3 2 (264 ) 78 68 Total Provision (benefit) for income taxes $ (4 ) $ 171 $ 158 Current income tax provision is the amount of income taxes reported or expected to be reported on our income tax returns. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year. Accounting for income taxes under generally accepted accounting principles in the United States of America requires individual tax-paying entities of the Company to offset deferred income tax assets and liabilities within each particular tax jurisdiction and present them as a single amount in the Consolidated Statements of Financial Position. Amounts in different tax jurisdictions cannot be offset against each other. The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: (Millions of dollars) 2017 2016 Assets: Deferred and refundable income taxes $ 101 $ 89 Liabilities: Deferred income taxes and other liabilities (579 ) (939 ) Deferred income taxes, net $ (478 ) $ (850 ) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) 2017 2016 Deferred income tax assets: Allowance for credit losses $ 96 $ 148 Tax carryforwards 43 73 139 221 Deferred income tax liabilities (primarily lease basis differences) (441 ) (693 ) Valuation allowance for deferred income tax assets (11 ) (10 ) Deferred income tax on translation adjustment (165 ) (368 ) Deferred income taxes, net $ (478 ) $ (850 ) As of December 31, 2017 , amounts and expiration dates of net operating loss (NOL) carryforwards in various U.S. state taxing jurisdictions were: (Millions of dollars) 2018 2019 2020 2021 2022-2037 Total $ 6 $ 4 $ 1 $ 5 $ 137 $ 153 The gross deferred income tax asset associated with these NOL carryforwards is $12 million as of December 31, 2017 , partially offset by a valuation allowance of $1 million . In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis. As of December 31, 2017 , amounts and expiration dates of NOL carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2018 2019 2020 2021 2022-2037 Unlimited Total $ — $ — $ — $ 26 $ 45 $ 53 $ 124 Valuation allowances totaling $10 million have been recorded at certain non-U.S. subsidiaries that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets. A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: (Millions of dollars) 2017 2016 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ 4 $ — Additions for income tax positions related to current year — 1 Additions for income tax positions related to prior year — 3 Reductions for income tax positions related to settlements (2) (4 ) — Balance at end of year $ — $ 4 Amount that, if recognized, would impact the effective tax rate $ — $ — (1) Foreign currency translation amounts are included within each line as applicable. (2) Includes cash payment or other reduction of assets to settle liability. We classify interest and penalties on income taxes as a component of the provision for income taxes. During the years ended December 31, 2017 , 2016 and 2015 , we recognized an expense of $2 million , a benefit of less than $1 million and an expense of less than $1 million in interest and penalties, respectively. As of December 31, 2017 and 2016 , the total amount of accrued interest and penalties was less than $1 million and $2 million , respectively. On January 31, 2018, Caterpillar received a Revenue Agent's Report (RAR) from the IRS indicating the end of field examination of our U.S. tax returns for 2010 to 2012. Tax years prior to 2007 are generally no longer subject to U.S. tax assessment. In our major non-U.S. jurisdictions, tax years are typically subject to examination for three to seven years. Due to the uncertainty related to the timing and potential outcome of audits, we cannot estimate the range of reasonably possible change in unrecognized tax benefits in the next 12 months.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS A. Fair Value Measurements The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: • Level 1 – Quoted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. • Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. When available, we use quoted market prices to determine fair value and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or us) will not be fulfilled. For financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (Level 2 and 3), our fair value calculations have been adjusted accordingly. Derivative financial instruments The fair value of interest rate contracts is primarily based on standard industry accepted models that utilize the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency forward and cross currency contracts is based on a standard industry accepted valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate. Derivative financial instruments are measured on a recurring basis at fair value and are classified as Level 2 measurements. We had derivative financial instruments in a net liability position included in our Consolidated Statements of Financial Position of $46 million as of December 31, 2017 , and in a net asset position of $64 million as of December 31, 2016 . Impaired loans Our impaired loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is considered impaired when management determines that collection of contractual amounts due is not probable. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables' effective interest rate, 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 $341 million and $137 million as of December 31, 2017 and 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) 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 708 $ 708 $ 1,795 $ 1,795 1 Finance receivables, net (excluding finance leases (1) ) $ 20,063 $ 20,019 $ 20,101 $ 19,949 3 Note 2 Interest rate contracts: In a net receivable position $ 3 $ 3 $ 4 $ 4 2 Note 9 In a net payable position $ (2 ) $ (2 ) $ (1 ) $ (1 ) 2 Note 9 Cross currency contracts In a receivable position $ 7 $ 7 $ 56 $ 56 2 Note 9 In a payable position $ (57 ) $ (57 ) $ (3 ) $ (3 ) 2 Note 9 Foreign currency contracts: In a receivable position $ 12 $ 12 $ 12 $ 12 2 Note 9 In a payable position $ (9 ) $ (9 ) $ (4 ) $ (4 ) 2 Note 9 Restricted cash and cash equivalents (2) $ 24 $ 24 $ 29 $ 29 1 Short-term borrowings $ (4,836 ) $ (4,836 ) $ (7,094 ) $ (7,094 ) 1 Note 7 Long-term debt $ (22,106 ) $ (22,230 ) $ (20,537 ) $ (20,724 ) 2 Note 8 Guarantees $ — $ — $ (1 ) $ (1 ) 3 Note 11 (1) As of December 31, 2017 and 2016 , represents finance leases with a net carrying value of $7.06 billion and $6.11 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Transactions with Related Parti

Transactions with Related Parties	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Transactions with Related Parties	TRANSACTIONS WITH RELATED PARTIES We have a Support Agreement with Caterpillar, which provides that Caterpillar will (1) remain, directly or indirectly, our sole owner; (2) cause us to maintain a tangible net worth of at least $20 million and (3) ensure that we maintain a ratio of profit before income taxes and interest expense to interest expense (as defined by the Support Agreement) of not less than 1.15 to 1, calculated on an annual basis. Although this agreement can be modified or terminated by either party, any termination or any modification which would adversely affect holders of our debt requires the consent of holders of 66-2/3 percent in principal amount of outstanding debt of each series so affected. Any modification or termination which would adversely affect the lenders under the Credit Facility requires their consent. Caterpillar's obligation under this agreement is not directly enforceable by any of our creditors and does not constitute a guarantee of any of our obligations. Cash dividends of $725 million , $275 million and $600 million were paid to Caterpillar in 2017 , 2016 and 2015 , respectively. We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.79 billion from Caterpillar, and Caterpillar may borrow up to $2.14 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. We extended a $2 billion committed credit facility to Caterpillar, which expires in February 2019. Under this agreement, we receive a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. Information concerning these agreements was as follows: (Millions of dollars) 2017 2016 2015 Notes payable as of December 31, $ 1,638 $ 1,637 $ 1,096 Notes receivable as of December 31, $ 559 $ 530 $ 490 Interest expense $ 21 $ 15 $ 6 Interest income on Notes Receivable with Caterpillar (1) $ 74 $ 30 $ 21 Fees on committed credit facility extended to Caterpillar (1) $ 40 $ 40 $ 40 (1) Included in Other revenues, net in the Consolidated Statements of Profit. We have agreements with Caterpillar to purchase certain trade receivables at a discount. Information pertaining to these purchases was as follows: (Millions of dollars) 2017 2016 2015 Purchases made $ 34,667 $ 28,631 $ 33,154 Discounts earned $ 253 $ 207 $ 222 Purchased Receivables as of December 31, $ 3,461 $ 2,431 $ 2,601 We participate in certain marketing programs offered in conjunction with Caterpillar that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. During 2017 , 2016 and 2015 , relative to such programs, we received $250 million , $233 million and $188 million , respectively. We have finance receivables and equipment on operating leases, net of depreciation, with Caterpillar of $17 million and $18 million as of December 31, 2017 and 2016 , respectively. For the years ended December 31, 2017 , 2016 and 2015 , we recognized revenues of $4 million , $8 million and $9 million , respectively, related to these finance receivables and operating leases. For the years ended December 31, 2017 , 2016 and 2015 , we recognized depreciation related to these operating leases of $3 million , $7 million and $7 million , respectively. At December 31, 2017 and 2016 , $481 million and $403 million , respectively, of our portfolio is subject to guarantees by Caterpillar and affiliates. We participate in various benefit plans, which are administered by Caterpillar. These plans include employee medical plans and postretirement benefit plans. We reimburse Caterpillar for these charges. During 2017 , 2016 and 2015 , these charges amounted to $31 million , $29 million and $29 million , respectively. Included in these charges are contributions to defined benefit plans in the amount of $8 million in 2017 and $7 million for 2016 and 2015 , respectively. These contributions are related to our participation in the following defined benefit plans that are administered by Caterpillar: the Caterpillar Inc. Retirement Income Plan, the Caterpillar Inc. Supplemental Retirement Plan and the Caterpillar Inc. Retiree Benefit Program. The total cost of the defined benefit plans is determined by actuarial valuation and we receive an allocation of the service and prior service cost based on headcount. We participate in the Caterpillar stock incentive plans. In 2017 , 2016 and 2015 , Caterpillar allocated to us $8 million , $9 million and $12 million , respectively, in expenses related to stock based compensation. Further information about these plans is available in Caterpillar’s 2017 Annual Report on Form 10-K filed separately with the Securities and Exchange Commission. Caterpillar provides operational and administrative support, which is integral to the conduct of our business. In 2017 , 2016 and 2015 , these operational and support charges for which we reimburse Caterpillar amounted to $30 million , $28 million and $37 million , respectively. In addition, we provide administrative support services to certain Caterpillar subsidiaries. Caterpillar reimburses us for these charges. During 2017 , 2016 and 2015 , these charges amounted to $9 million , $9 million and $12 million, respectively. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year.

Leases

Leases	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
Leases	LEASES We lease our offices and other property through operating leases. Rental expense is charged to operations as incurred. For 2017 , 2016 and 2015 , total rental expense for operating leases was $16 million , $17 million and $16 million , respectively. At December 31, 2017 , minimum payments for operating leases having initial non-cancelable terms in excess of one year were as follows: (Millions of dollars) 2018 $ 8 2019 6 2020 4 2021 3 2022 3 Thereafter 3 Total $ 27 We had a commitment to purchase the corporate headquarters building for $91 million as of December 31, 2017 . The building purchase was closed on January 4, 2018.

Segment and Geographic Informat

Segment and Geographic Information	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment and Geographic Information	SEGMENT AND GEOGRAPHIC 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 Mexico, 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 11 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 years ended December 31 was as follows: (Millions of dollars) 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2017 Capital expenditures North America $ 1,337 $ 353 $ 306 $ 520 $ 36 $ 14,790 $ 992 Europe 307 116 37 80 4 4,332 103 Asia/Pacific 267 99 87 25 (5 ) 4,214 6 Latin America and CPF 447 47 165 41 94 6,153 54 Mining 272 49 50 142 8 2,399 210 Total Segments 2,630 664 645 808 137 31,888 1,365 Unallocated 90 (220 ) 193 — — 1,719 8 Timing (31 ) (6 ) — 2 (5 ) 53 — Methodology — 152 (171 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 2,689 $ 590 $ 667 $ 810 $ 132 $ 33,160 $ 1,373 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 $ 1,230 $ 326 $ 287 $ 477 $ 28 $ 14,925 $ 1,174 Europe 268 86 33 83 — 3,834 147 Asia/Pacific 254 82 81 29 3 3,620 74 Latin America and CPF 487 77 156 61 100 7,270 26 Mining 308 49 47 188 7 2,734 206 Total Segments 2,547 620 604 838 138 32,383 1,627 Unallocated 80 (138 ) 116 — — 1,688 6 Timing (32 ) (12 ) — 3 (3 ) 27 3 Methodology — 91 (109 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 2,595 $ 561 $ 611 $ 841 $ 135 $ 33,615 $ 1,636 2015 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2015 Capital expenditures North America $ 1,156 $ 370 $ 261 $ 409 $ 7 $ 14,419 $ 1,118 Europe 284 96 31 76 3 3,758 136 Asia/Pacific 285 65 100 21 29 3,923 37 Latin America and CPF 533 108 152 104 64 7,376 89 Mining 380 52 56 226 14 2,947 69 Total Segments 2,638 691 600 836 117 32,423 1,449 Unallocated 65 (101 ) 67 — — 1,743 9 Timing (30 ) (32 ) — — 2 164 3 Methodology — 61 (74 ) — — (216 ) — Inter-segment Eliminations (1) — — — — — (247 ) — Total $ 2,673 $ 619 $ 593 $ 836 $ 119 $ 33,867 $ 1,461 (1) Elimination is primarily related to intercompany loans. Geographic information: (Millions of dollars) 2017 2016 2015 Revenues Inside U.S. $ 1,551 $ 1,397 $ 1,330 Inside Canada 157 171 198 Inside Australia 139 176 200 All other 842 851 945 Total $ 2,689 $ 2,595 $ 2,673 Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), Net 2017 2016 Inside U.S. $ 2,554 $ 2,401 Inside Canada 413 535 Inside Australia 113 250 All other 550 584 Total $ 3,630 $ 3,770

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Financial Data (Unaudited)	SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Millions of dollars) 2017 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 662 $ 676 $ 673 $ 678 Profit before income taxes $ 167 $ 164 $ 126 $ 133 Profit $ 115 $ 114 $ 86 $ 271 2016 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 643 $ 659 $ 651 $ 642 Profit before income taxes $ 145 $ 148 $ 146 $ 122 Profit $ 100 $ 102 $ 97 $ 85

Critical Accounting Policies (P

Critical Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Residual values for leased assets	Residual values for leased assets Lease residual values are an estimate of the market value of leased equipment at the end of the lease term and are based on an analysis of historical wholesale market sales prices, projected forward on a level trend line without consideration for inflation or possible future pricing action. At the inception of the lease, residual values are estimated with consideration of the following critical factors: market size and demand, any known significant market/product trends, total expected hours of usage, machine configuration, application, location, model changes, quantities, past remarketing experience, third-party residual guarantees and contractual customer purchase options. Many of these factors are gathered in an application survey that is completed prior to quotation. The lease agreement also clearly defines applicable return conditions and remedies for non-compliance, to ensure that the leased equipment will be in good operating condition upon return. Model changes and updates, as well as market strength and product acceptance, are monitored and adjustments are made to residual values in accordance with the significance of any such changes. Remarketing sales staff works closely with customers and dealers to manage the sale of lease returns and the recovery of residual exposure. During the term of the equipment on operating leases, we evaluate our depreciation on a regular basis taking into consideration expected residual values at lease termination. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. For finance leases, residual value adjustments are recognized through a reduction of finance revenue. We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, the fair value of the equipment on operating leases is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value. At December 31, 2017 , the aggregate residual value of equipment on operating leases was $2.20 billion. Without consideration of other factors such as third-party residual guarantees or contractual customer purchase options, a 10 percent non-temporary decrease in the market value of our equipment subject to operating leases would reduce residual value estimates and result in recognition of approximately $80 million of additional annual depreciation expense.
Allowance for credit losses	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 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. While management believes it has exercised prudent judgment and applied reasonable assumptions, there can be no assurance that in the future, changes in economic conditions or other factors would not cause changes in the financial health of our customers. If the financial health of our customers deteriorates, the timing and level of payments received could be impacted and therefore, could result in a change to our estimated losses.
Income taxes	Income taxes We are subject to the income tax laws of the many jurisdictions in which we operate. These tax laws are complex, and the manner in which they apply to our facts is sometimes open to interpretation. In establishing the provision for income taxes, we must make judgments about the application of these inherently complex tax laws. Despite our belief that our tax return positions are consistent with applicable tax laws, we believe that taxing authorities could challenge certain positions. Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment reached through negotiations or litigation. We record tax benefits for uncertain tax positions based upon management's evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more likely than not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more likely than not of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Significant judgment is required in making these determinations and adjustments to unrecognized tax benefits may be necessary to reflect actual taxes payable upon settlement. Adjustments related to positions impacting the effective tax rate affect the provision for income taxes. Adjustments related to positions impacting the timing of deductions impact deferred tax assets and liabilities. Income taxes are based on the statutory tax rate of the jurisdiction in which earnings are subject to taxation. That statutory rate may differ from the statutory tax rate of the jurisdiction in which that entity is incorporated. Taxes are paid in the jurisdictions where earnings are subject to taxation. The effective tax rate differs from the U.S. statutory rate in part due to profits of non-U.S. subsidiaries being subject to statutory tax rates which were generally lower than the U.S. rate of 35 percent effective prior to January 1, 2018. Our income tax positions and analysis are based on currently enacted tax law. On December 22, 2017, U.S. tax legislation was enacted containing a broad range of tax reform provisions including a corporate tax rate reduction and changes in the U.S. taxation of non-U.S. earnings. We have not completed our accounting for the income tax effects of U.S. tax reform. However, we have made a reasonable estimate of the 2017 financial statement impact as of January 18, 2018, and recognized a provisional net benefit of $151 million. We will continue to update our calculations as additional required information is prepared and analyzed, interpretations and assumptions are refined, additional guidance is issued, and due to actions we may take as a result of the legislation. These updates could significantly impact the provision for income taxes, the amount of taxes payable, and the deferred tax asset and liability balances. The provisionally estimated net benefit includes a $334 million write-down of net deferred tax liabilities to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent beginning January 1, 2018. We are still analyzing certain aspects of the law and refining our calculations of basis differences as of December 31, 2017, which could affect the measurement of these balances. The provisionally estimated net benefit includes $183 million for the estimated cost of a mandatory deemed repatriation of non-U.S. earnings. The resulting tax liability, net of available foreign tax credits, is $131 million, payable over eight years and is included in Income taxes payable in the Consolidated Statements of Financial Position. The U.S. federal tax cost for the mandatory deemed repatriation is computed at 15.5 percent for non-U.S. earnings held in liquid assets and 8 percent for non-liquid assets, reduced by applicable foreign tax credits. These estimates are provisional due to additional information and analysis required to determine cumulative taxable earnings since 1986 for non-U.S. subsidiaries at two separate points in time and to determine the amount of earnings that are held in liquid versus non-liquid assets as defined in the new legislation at several different measurement periods. In addition, information is being gathered and analyzed to support available foreign tax credits including estimates of credit utilization and valuation allowance considerations for any remaining foreign tax credit carryforward. Due to uncertainty about aspects of the tax law, we have made various assumptions to determine our reasonable estimate that we expect to refine as additional guidance is issued. As a result of U.S. tax reform legislation, distributions of profits from non-U.S. subsidiaries are expected to have minimal U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. We have not recorded a deferred tax liability for withholding taxes in non-U.S. jurisdictions where earnings are considered indefinitely reinvested. If management intentions or U.S. tax law changes in the future, there could be an impact on the provision for income taxes to record an incremental tax liability in the period the change occurs. Deferred tax assets generally represent tax benefits for tax deductions or credits available in future tax returns. Certain estimates and assumptions are required to determine whether it is more likely than not that all or some portion of the benefit of a deferred tax asset will not be realized. In making this assessment, management analyzes the trend of U.S. GAAP earnings and estimates the impact of future taxable income, reversing temporary differences and available prudent and feasible tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate realizability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in the provision for income taxes.

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs) in which Cat Financial is the primary beneficiary. We consolidate all 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 11 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. Certain amounts for prior years have been reclassified to conform with current-year financial statement presentation.
Recognition of Earned Income	Recognition of Earned Income Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and operating lease revenue is suspended and the account 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 account becomes current and collection of remaining amounts is considered probable. We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate.
Depreciation	Depreciation Depreciation for equipment on operating leases is recognized using the straight-line method over the lease term, typically one to seven years. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term.
Derivative Financial Instruments	Derivative Financial Instruments Our earnings and cash flows 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. All derivatives are recorded at fair value. See Note 9 for additional information.
Foreign Currency Translation	Foreign Currency Translation The functional currency for most of our subsidiaries is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in the Consolidated Statements of Profit. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income/(loss) in the Consolidated Statements of Financial Position.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates.

Finance Receivables (Tables)

Finance Receivables (Tables)	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Summary of finance receivables included in the Consolidated Statements of Financial Position	A summary of finance receivables included in the Consolidated Statements of Financial Position as of December 31, was as follows: (Millions of dollars) 2017 2016 Finance leases and installment sale contracts – Retail (1) $ 14,647 $ 13,565 Retail notes receivable 9,417 10,195 Wholesale notes receivable 4,161 3,457 Finance leases and installment sale contracts – Wholesale 119 103 28,344 27,320 Less: Unearned income (853 ) (765 ) Recorded investment in finance receivables 27,491 26,555 Less: Allowance for credit losses (365 ) (343 ) Total finance receivables, net $ 27,126 $ 26,212 (1) Includes $4 million of finance receivables classified as held for sale as of December 31, 2016.
Maturities of finance receivables	Maturities of our finance receivables, as of December 31, 2017 , reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail Installment Sale Contracts Wholesale Installment Sale Contracts Retail Finance Leases Wholesale Finance Leases Retail Notes Wholesale Notes Total 2018 $ 2,798 $ 10 $ 2,758 $ 22 $ 3,578 $ 3,955 $ 13,121 2019 2,031 8 1,920 16 1,510 121 5,606 2020 1,281 6 1,078 9 1,445 77 3,896 2021 629 2 444 5 1,160 6 2,246 2022 212 — 153 2 867 2 1,236 Thereafter 26 — 57 2 857 — 942 Total 6,977 26 6,410 56 9,417 4,161 27,047 Guaranteed residual value — — 425 31 — — 456 Unguaranteed residual value — — 835 6 — — 841 Total $ 6,977 $ 26 $ 7,670 $ 93 $ 9,417 $ 4,161 $ 28,344
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2017 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 331 $ 10 $ 2 $ 343 Receivables written off (157 ) — — (157 ) Recoveries on receivables previously written off 43 — — 43 Provision for credit losses 129 (1 ) 1 129 Adjustment due to sale of receivables (1 ) — — (1 ) Foreign currency translation adjustment 8 — — 8 Balance at end of year $ 353 $ 9 $ 3 $ 365 Individually evaluated for impairment $ 149 $ — $ — $ 149 Collectively evaluated for impairment 204 9 3 216 Ending Balance $ 353 $ 9 $ 3 $ 365 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 942 $ — $ — $ 942 Collectively evaluated for impairment 18,847 4,241 3,461 26,549 Ending Balance $ 19,789 $ 4,241 $ 3,461 $ 27,491 (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 of finance receivables by aging category. (Millions of dollars) December 31, 2017 31-60 Days Past Due 61-90 Days Past Due 91+ Days Past Due Total Past Due Current Recorded Investment in Finance Receivables 91+ Still Accruing Customer North America $ 71 $ 15 $ 42 $ 128 $ 8,040 $ 8,168 $ 8 Europe 21 10 46 77 2,718 2,795 13 Asia/Pacific 18 7 14 39 2,520 2,559 5 Mining 3 1 60 64 1,751 1,815 9 Latin America 37 55 142 234 1,546 1,780 — Caterpillar Power Finance 20 32 144 196 2,476 2,672 1 Dealer North America — — — — 2,394 2,394 — Europe — — — — 417 417 — Asia/Pacific — — — — 578 578 — Mining — — — — 5 5 — Latin America — 72 — 72 773 845 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables North America 24 5 2 31 2,010 2,041 2 Europe 1 2 1 4 344 348 — Asia/Pacific — — — — 630 630 — Mining — — — — — — — Latin America — — — — 437 437 — Caterpillar Power Finance — — — — 5 5 — Total $ 195 $ 199 $ 451 $ 845 $ 26,646 $ 27,491 $ 38 (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 December 31, 2017 As of December 31, 2016 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 19 $ 19 $ — $ 10 $ 10 $ — Europe 45 45 — 49 48 — Asia/Pacific 34 33 — 3 2 — Mining 121 121 — 129 129 — Latin America 45 45 — 68 68 — Caterpillar Power Finance 160 172 — 271 271 — Total $ 424 $ 435 $ — $ 530 $ 528 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 44 $ 43 $ 17 $ 61 $ 60 $ 22 Europe 9 8 5 7 7 3 Asia/Pacific 8 8 2 50 50 8 Mining — — — — — — Latin America 95 106 42 93 104 34 Caterpillar Power Finance 362 365 83 45 44 18 Total $ 518 $ 530 $ 149 $ 256 $ 265 $ 85 Total Impaired Finance Receivables North America $ 63 $ 62 $ 17 $ 71 $ 70 $ 22 Europe 54 53 5 56 55 3 Asia/Pacific 42 41 2 53 52 8 Mining 121 121 — 129 129 — Latin America 140 151 42 161 172 34 Caterpillar Power Finance 522 537 83 316 315 18 Total $ 942 $ 965 $ 149 $ 786 $ 793 $ 85 (Millions of dollars) Year Ended Year Ended Year Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 13 $ 1 $ 18 $ 1 $ 12 $ 1 Europe 48 1 46 1 42 1 Asia/Pacific 24 2 2 — 2 — Mining 126 7 98 4 75 3 Latin America 64 3 47 1 31 — Caterpillar Power Finance 221 9 270 11 170 5 Total $ 496 $ 23 $ 481 $ 18 $ 332 $ 10 Impaired Finance Receivables With An Allowance Recorded North America $ 49 $ 1 $ 34 $ — $ 9 $ — Europe 6 — 11 1 14 1 Asia/Pacific 31 2 37 3 44 2 Mining — — 13 — 39 1 Latin America 99 4 66 2 56 3 Caterpillar Power Finance 180 6 50 1 115 3 Total $ 365 $ 13 $ 211 $ 7 $ 277 $ 10 Total Impaired Finance Receivables North America $ 62 $ 2 $ 52 $ 1 $ 21 $ 1 Europe 54 1 57 2 56 2 Asia/Pacific 55 4 39 3 46 2 Mining 126 7 111 4 114 4 Latin America 163 7 113 3 87 3 Caterpillar Power Finance 401 15 320 12 285 8 Total $ 861 $ 36 $ 692 $ 25 $ 609 $ 20
Recorded investment in Customer finance receivables on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status as of December 31, was as follows: (Millions of dollars) 2017 2016 North America $ 38 $ 66 Europe 37 35 Asia/Pacific 10 12 Mining 63 69 Latin America 192 307 Caterpillar Power Finance 343 90 Total $ 683 $ 579
Finance receivables modified as TDRs	Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2017 , 2016 and 2015 , were as follows: (Dollars in millions) Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 43 $ 34 $ 35 Europe 4 1 1 Asia/Pacific 10 39 31 Mining 2 57 56 Latin America 17 26 27 Caterpillar Power Finance (1) 68 422 407 Total 144 $ 579 $ 557 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 25 $ 25 $ 25 Europe 43 12 9 Asia/Pacific 31 29 28 Mining 4 74 66 Latin America (2) 437 118 82 Caterpillar Power Finance 34 196 177 Total 574 $ 454 $ 387 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 14 $ 1 $ 1 Europe 23 2 2 Asia/Pacific 21 26 26 Mining 4 65 65 Latin America 11 1 2 Caterpillar Power Finance 21 259 242 Total 94 $ 354 $ 338 (1) In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million are related to six customers. (2) In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2017 , 2016 and 2015 , which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Year Ended Year Ended Year Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 4 $ 3 5 $ 2 7 $ 1 Europe 1 — 5 2 — — Asia/Pacific 4 1 1 — — — Latin America (1) 243 17 4 1 12 1 Total 252 $ 21 15 $ 5 19 $ 2 (1) In Latin America, 238 contracts with a post-TDR recorded investment of $16 million are related to two customers for the year ended December 31, 2017.

Equipment on Operating Leases (

Equipment on Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
Equipment leased to others	Components of equipment on operating leases, less accumulated depreciation as of December 31, were as follows: (Millions of dollars) 2017 2016 Equipment on operating leases, at cost $ 5,204 $ 5,395 Less: Accumulated depreciation (1,636 ) (1,687 ) Equipment on operating leases, net $ 3,568 $ 3,708
Schedule of minimum rental payments to be received for equipment leased to others	At December 31, 2017 , scheduled minimum rental payments for operating leases were as follows: 2018 2019 2020 2021 2022 Thereafter Total $ 799 $ 517 $ 264 $ 113 $ 43 $ 11 $ 1,747

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Other Assets [Abstract]
Schedule of other assets	The components of other assets as of December 31, were as follows: (Millions of dollars) 2017 2016 Customer and other miscellaneous receivables $ 457 $ 417 Collateral held for resale, at net realizable value 432 654 Other (1) 136 180 Total other assets $ 1,025 $ 1,251 (1) Includes $31 million and $21 million of other receivables from Caterpillar as of December 31, 2017 and 2016, respectively.

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2017
Short-term Debt [Abstract]
Short-term borrowings	Short-term borrowings outstanding as of December 31, were comprised of the following: (Millions of dollars) 2017 2016 Balance Avg. Rate Balance Avg. Rate Commercial paper, net $ 3,680 1.1% $ 5,985 0.9% Bank borrowings 675 5.2% 553 7.5% Variable denomination floating rate demand notes 481 1.1% 556 0.9% Total $ 4,836 $ 7,094

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2017
Long-term Debt, Unclassified [Abstract]
Long-term debt	Long-term debt outstanding as of December 31, was comprised of the following: (Millions of dollars) 2017 2016 Balance Avg. Rate Balance Avg. Rate Medium-term notes $ 21,362 2.5% $ 19,731 2.4% Unamortized discount and debt issuance costs (59 ) (64 ) Medium-term notes, net 21,303 19,667 Bank borrowings 803 5.0% 870 4.5% Total $ 22,106 $ 20,537
Aggregate amounts of maturities of long-term debt	Long-term debt outstanding as of December 31, 2017 , matures as follows: ( Millions of dollars) 2018 $ 6,188 2019 5,681 2020 4,290 2021 1,740 2022 2,048 Thereafter 2,159 Total $ 22,106

Derivative Financial Instrume33

Derivative Financial Instruments and Risk Management (Tables)	12 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position	The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value December 31, Consolidated Statements of Financial Position Location 2017 2016 Designated derivatives Interest rate contracts Other assets $ 3 $ 4 Interest rate contracts Accrued expenses (2 ) (1 ) Cross currency contracts Other assets 7 29 Cross currency contracts Accrued expenses (57 ) (3 ) $ (49 ) $ 29 Undesignated derivatives Foreign exchange contracts Other assets $ 12 $ 12 Foreign exchange contracts Accrued expenses (9 ) (4 ) Cross currency contracts Other assets — 27 $ 3 $ 35
Schedule of effect of derivatives designated as fair value hedging instruments on 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) Year Ended December 31, 2017 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (2 ) $ 2 Year Ended December 31, 2016 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (12 ) $ 11 Year Ended December 31, 2015 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (27 ) $ 26
Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit	Cash Flow Hedges (Millions of dollars) Year Ended December 31, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 3 $ — Cross currency contracts (77 ) Other income (expense) (81 ) — Cross currency contracts Interest expense 6 — $ (77 ) $ (72 ) $ — Year Ended December 31, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 8 Interest expense $ (3 ) $ — Cross currency contracts 15 Other income (expense) 28 — $ 23 $ 25 $ — Year Ended December 31, 2015 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 2 Interest expense $ (6 ) $ — Cross currency contracts 1 Other income (expense) 1 — $ 3 $ (5 ) $ —
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 for the years ended December 31: (Millions of dollars) Classification 2017 2016 2015 Foreign exchange contracts Other income (expense) $ 14 $ (10 ) $ (50 ) Cross currency contracts Other income (expense) (5 ) (14 ) 16 $ 9 $ (24 ) $ (34 )
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 as of December 31, was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) 2017 2016 Derivative Assets Gross Amount of Recognized Assets $ 22 $ 72 Gross Amounts Offset — — Net Amount of Assets (1) 22 72 Gross Amounts Not Offset (10 ) (7 ) Net Amount $ 12 $ 65 Derivative Liabilities Gross Amount of Recognized Liabilities $ (68 ) $ (8 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (68 ) (8 ) Gross Amounts Not Offset 10 7 Net Amount $ (58 ) $ (1 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Income/(Loss) (Tables)	12 Months Ended
	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated other comprehensive income/(loss)	Comprehensive income/(loss) and its components are presented in the Consolidated Statements of Comprehensive Income. Changes in Accumulated other comprehensive income/(loss), net of tax, included in the Consolidated Statements of Changes in Shareholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Total Balance at December 31, 2014 $ (359 ) $ (5 ) $ (364 ) Other comprehensive income/(loss) before reclassifications (538 ) 2 (536 ) Amounts reclassified from accumulated other comprehensive (income)/loss — 3 3 Other comprehensive income/(loss) (538 ) 5 (533 ) Balance at December 31, 2015 $ (897 ) $ — $ (897 ) Other comprehensive income/(loss) before reclassifications (97 ) 15 (82 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (16 ) (16 ) Other comprehensive income/(loss) (97 ) (1 ) (98 ) Balance at December 31, 2016 $ (994 ) $ (1 ) $ (995 ) Other comprehensive income/(loss) before reclassifications 407 (49 ) 358 Amounts reclassified from accumulated other comprehensive (income)/loss — 45 45 Other comprehensive income/(loss) 407 (4 ) 403 Balance at December 31, 2017 $ (587 ) $ (5 ) $ (592 )
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 during the years ended December 31, 2017 , 2016 and 2015 was as follows: (Millions of dollars) Classification of income (expense) 2017 2016 2015 Cross currency contracts Other income (expense) $ (81 ) $ 28 $ 1 Cross currency contracts Interest expense 6 — — Interest rate contracts Interest expense 3 (3 ) (6 ) Reclassifications before tax (72 ) 25 (5 ) Tax (provision) benefit 27 (9 ) 2 Total reclassifications from Accumulated other comprehensive income/(loss) $ (45 ) $ 16 $ (3 )

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Reconciliation of the U.S. federal statutory rate to effective rate	A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: (Millions of dollars) 2017 2016 2015 Taxes computed at U.S. statutory rates $ 206 35.0 % $ 196 35.0 % $ 217 35.0 % (Decreases) increases in taxes resulting from: State Income Tax, net of Federal Tax 2 0.3 % 2 0.4 % 3 0.5 % Subsidiaries' results subject to tax rates other than U.S. statutory rates (31 ) (5.3 )% (36 ) (6.5 )% (25 ) (4.0 )% Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (1) (16 ) (2.7 )% 2 0.3 % (39 ) (6.3 )% Foreign currency translation taxed at non-U.S. subsidiaries (12 ) (2.0 )% 13 2.3 % 6 0.9 % U.S. deferred tax rate change (334 ) (56.6 )% — — % — — % Mandatory deemed repatriation of non-U.S. earnings 183 31.0 % — — % — — % Other, net (2 ) (0.4 )% (6 ) (1.1 )% (4 ) (0.6 )% Provision (benefit) for income taxes $ (4 ) (0.7 )% $ 171 30.4 % $ 158 25.5 % (1) Excludes provisionally estimated net benefit from 2017 U.S. tax reform.
Components of Profit before income taxes	The components of Profit before income taxes for the years ended December 31, were as follows: (Millions of dollars) 2017 2016 2015 U.S. $ 285 $ 249 $ 230 Non-U.S. 305 312 389 Total $ 590 $ 561 $ 619
Components of the Provision (benefit) for income taxes	The components of the Provision (benefit) for income taxes were as follows for the years ended December 31: (Millions of dollars) 2017 2016 2015 Current income tax provision (benefit): U.S. $ 157 $ (18 ) $ (21 ) Non-U.S. 102 111 109 State (U.S.) 1 — 2 260 93 90 Deferred income tax provision (benefit): U.S. (239 ) 90 45 Non-U.S. (28 ) (15 ) 21 State (U.S.) 3 3 2 (264 ) 78 68 Total Provision (benefit) for income taxes $ (4 ) $ 171 $ 158
Deferred income tax assets and liabilities	The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: (Millions of dollars) 2017 2016 Assets: Deferred and refundable income taxes $ 101 $ 89 Liabilities: Deferred income taxes and other liabilities (579 ) (939 ) Deferred income taxes, net $ (478 ) $ (850 ) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) 2017 2016 Deferred income tax assets: Allowance for credit losses $ 96 $ 148 Tax carryforwards 43 73 139 221 Deferred income tax liabilities (primarily lease basis differences) (441 ) (693 ) Valuation allowance for deferred income tax assets (11 ) (10 ) Deferred income tax on translation adjustment (165 ) (368 ) Deferred income taxes, net $ (478 ) $ (850 )
Summary of net operating loss carryforwards	As of December 31, 2017 , amounts and expiration dates of net operating loss (NOL) carryforwards in various U.S. state taxing jurisdictions were: (Millions of dollars) 2018 2019 2020 2021 2022-2037 Total $ 6 $ 4 $ 1 $ 5 $ 137 $ 153 The gross deferred income tax asset associated with these NOL carryforwards is $12 million as of December 31, 2017 , partially offset by a valuation allowance of $1 million . In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis. As of December 31, 2017 , amounts and expiration dates of NOL carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2018 2019 2020 2021 2022-2037 Unlimited Total $ — $ — $ — $ 26 $ 45 $ 53 $ 124 Valuation allowances totaling $10 million have been recorded at certain non-U.S. subsidiaries that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets.
Schedule of unrecognized tax benefits	A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: (Millions of dollars) 2017 2016 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ 4 $ — Additions for income tax positions related to current year — 1 Additions for income tax positions related to prior year — 3 Reductions for income tax positions related to settlements (2) (4 ) — Balance at end of year $ — $ 4 Amount that, if recognized, would impact the effective tax rate $ — $ — (1) Foreign currency translation amounts are included within each line as applicable. (2) Includes cash payment or other reduction of assets to settle liability.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair values of financial instruments	Please refer to the table below for the fair values of our financial instruments. (Millions of dollars) 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 708 $ 708 $ 1,795 $ 1,795 1 Finance receivables, net (excluding finance leases (1) ) $ 20,063 $ 20,019 $ 20,101 $ 19,949 3 Note 2 Interest rate contracts: In a net receivable position $ 3 $ 3 $ 4 $ 4 2 Note 9 In a net payable position $ (2 ) $ (2 ) $ (1 ) $ (1 ) 2 Note 9 Cross currency contracts In a receivable position $ 7 $ 7 $ 56 $ 56 2 Note 9 In a payable position $ (57 ) $ (57 ) $ (3 ) $ (3 ) 2 Note 9 Foreign currency contracts: In a receivable position $ 12 $ 12 $ 12 $ 12 2 Note 9 In a payable position $ (9 ) $ (9 ) $ (4 ) $ (4 ) 2 Note 9 Restricted cash and cash equivalents (2) $ 24 $ 24 $ 29 $ 29 1 Short-term borrowings $ (4,836 ) $ (4,836 ) $ (7,094 ) $ (7,094 ) 1 Note 7 Long-term debt $ (22,106 ) $ (22,230 ) $ (20,537 ) $ (20,724 ) 2 Note 8 Guarantees $ — $ — $ (1 ) $ (1 ) 3 Note 11 (1) As of December 31, 2017 and 2016 , represents finance leases with a net carrying value of $7.06 billion and $6.11 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Transactions with Related Par37

Transactions with Related Parties (Tables)	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Transactions with Related Parties	We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.79 billion from Caterpillar, and Caterpillar may borrow up to $2.14 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. We extended a $2 billion committed credit facility to Caterpillar, which expires in February 2019. Under this agreement, we receive a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. Information concerning these agreements was as follows: (Millions of dollars) 2017 2016 2015 Notes payable as of December 31, $ 1,638 $ 1,637 $ 1,096 Notes receivable as of December 31, $ 559 $ 530 $ 490 Interest expense $ 21 $ 15 $ 6 Interest income on Notes Receivable with Caterpillar (1) $ 74 $ 30 $ 21 Fees on committed credit facility extended to Caterpillar (1) $ 40 $ 40 $ 40 (1) Included in Other revenues, net in the Consolidated Statements of Profit. We have agreements with Caterpillar to purchase certain trade receivables at a discount. Information pertaining to these purchases was as follows: (Millions of dollars) 2017 2016 2015 Purchases made $ 34,667 $ 28,631 $ 33,154 Discounts earned $ 253 $ 207 $ 222 Purchased Receivables as of December 31, $ 3,461 $ 2,431 $ 2,601

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
Minimum payments for operating leases having initial non-cancelable terms in excess of one year	At December 31, 2017 , minimum payments for operating leases having initial non-cancelable terms in excess of one year were as follows: (Millions of dollars) 2018 $ 8 2019 6 2020 4 2021 3 2022 3 Thereafter 3 Total $ 27

Segment and Geographic Inform39

Segment and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31 was as follows: (Millions of dollars) 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2017 Capital expenditures North America $ 1,337 $ 353 $ 306 $ 520 $ 36 $ 14,790 $ 992 Europe 307 116 37 80 4 4,332 103 Asia/Pacific 267 99 87 25 (5 ) 4,214 6 Latin America and CPF 447 47 165 41 94 6,153 54 Mining 272 49 50 142 8 2,399 210 Total Segments 2,630 664 645 808 137 31,888 1,365 Unallocated 90 (220 ) 193 — — 1,719 8 Timing (31 ) (6 ) — 2 (5 ) 53 — Methodology — 152 (171 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 2,689 $ 590 $ 667 $ 810 $ 132 $ 33,160 $ 1,373 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 $ 1,230 $ 326 $ 287 $ 477 $ 28 $ 14,925 $ 1,174 Europe 268 86 33 83 — 3,834 147 Asia/Pacific 254 82 81 29 3 3,620 74 Latin America and CPF 487 77 156 61 100 7,270 26 Mining 308 49 47 188 7 2,734 206 Total Segments 2,547 620 604 838 138 32,383 1,627 Unallocated 80 (138 ) 116 — — 1,688 6 Timing (32 ) (12 ) — 3 (3 ) 27 3 Methodology — 91 (109 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 2,595 $ 561 $ 611 $ 841 $ 135 $ 33,615 $ 1,636 2015 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2015 Capital expenditures North America $ 1,156 $ 370 $ 261 $ 409 $ 7 $ 14,419 $ 1,118 Europe 284 96 31 76 3 3,758 136 Asia/Pacific 285 65 100 21 29 3,923 37 Latin America and CPF 533 108 152 104 64 7,376 89 Mining 380 52 56 226 14 2,947 69 Total Segments 2,638 691 600 836 117 32,423 1,449 Unallocated 65 (101 ) 67 — — 1,743 9 Timing (30 ) (32 ) — — 2 164 3 Methodology — 61 (74 ) — — (216 ) — Inter-segment Eliminations (1) — — — — — (247 ) — Total $ 2,673 $ 619 $ 593 $ 836 $ 119 $ 33,867 $ 1,461 (1) Elimination is primarily related to intercompany loans.
Geographic information	Geographic information: (Millions of dollars) 2017 2016 2015 Revenues Inside U.S. $ 1,551 $ 1,397 $ 1,330 Inside Canada 157 171 198 Inside Australia 139 176 200 All other 842 851 945 Total $ 2,689 $ 2,595 $ 2,673 Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), Net 2017 2016 Inside U.S. $ 2,554 $ 2,401 Inside Canada 413 535 Inside Australia 113 250 All other 550 584 Total $ 3,630 $ 3,770

Selected Quarterly Financial 40

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial data (unaudited)	(Millions of dollars) 2017 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 662 $ 676 $ 673 $ 678 Profit before income taxes $ 167 $ 164 $ 126 $ 133 Profit $ 115 $ 114 $ 86 $ 271 2016 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 643 $ 659 $ 651 $ 642 Profit before income taxes $ 145 $ 148 $ 146 $ 122 Profit $ 100 $ 102 $ 97 $ 85

Summary of Significant Accoun41

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Period after which collection of future income is considered as not probable	120 days

Summary of Significant Accoun42

Summary of Significant Accounting Policies (Details 2) - Equipment on operating leases	12 Months Ended
	Dec. 31, 2017
Minimum
Depreciation
Lease term used to calculate depreciation	1 year
Maximum
Depreciation
Lease term used to calculate depreciation	7 years

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail	$ 14,647	$ 13,565
Retail notes receivable	9,417	10,195
Wholesale notes receivable	4,161	3,457
Finance leases and installment sale contracts - Wholesale	119	103
Total gross finance receivables	28,344	27,320
Less: Unearned income	(853)	(765)
Recorded Investment in Finance Receivables	27,491	26,555
Less: Allowance for credit losses	(365)	(343)	$ (338)
Total finance receivables, net	$ 27,126	26,212
Finance receivables held-for-sale
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail		$ 4

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2018	$ 13,121
Amounts due in 2019	5,606
Amounts due in 2020	3,896
Amounts due in 2021	2,246
Amounts due in 2022	1,236
Amounts due thereafter	942
Total	27,047
Guaranteed residual value	456
Unguaranteed residual value	841
Total gross finance receivables	28,344	$ 27,320
Retail Installment Sale Contracts
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2018	2,798
Amounts due in 2019	2,031
Amounts due in 2020	1,281
Amounts due in 2021	629
Amounts due in 2022	212
Amounts due thereafter	26
Total	6,977
Guaranteed residual value	0
Unguaranteed residual value	0
Total gross finance receivables	6,977
Wholesale Installment Sale Contracts
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2018	10
Amounts due in 2019	8
Amounts due in 2020	6
Amounts due in 2021	2
Amounts due in 2022	0
Amounts due thereafter	0
Total	26
Guaranteed residual value	0
Unguaranteed residual value	0
Total gross finance receivables	26
Retail Finance Leases
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2018	2,758
Amounts due in 2019	1,920
Amounts due in 2020	1,078
Amounts due in 2021	444
Amounts due in 2022	153
Amounts due thereafter	57
Total	6,410
Guaranteed residual value	425
Unguaranteed residual value	835
Total gross finance receivables	7,670
Wholesale Finance Leases
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2018	22
Amounts due in 2019	16
Amounts due in 2020	9
Amounts due in 2021	5
Amounts due in 2022	2
Amounts due thereafter	2
Total	56
Guaranteed residual value	31
Unguaranteed residual value	6
Total gross finance receivables	93
Retail Notes
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2018	3,578
Amounts due in 2019	1,510
Amounts due in 2020	1,445
Amounts due in 2021	1,160
Amounts due in 2022	867
Amounts due thereafter	857
Total	9,417
Guaranteed residual value	0
Unguaranteed residual value	0
Total gross finance receivables	9,417
Wholesale Notes
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2018	3,955
Amounts due in 2019	121
Amounts due in 2020	77
Amounts due in 2021	6
Amounts due in 2022	2
Amounts due thereafter	0
Total	4,161
Guaranteed residual value	0
Unguaranteed residual value	0
Total gross finance receivables	$ 4,161

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	$ 343	$ 338	$ 365	$ 343
Allowance for credit losses as a percent of our recorded investment in finance receivables			1.33%	1.29%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	343	338
Receivables written off	(157)	(158)
Recoveries on receivables previously written off	43	35
Provision for credit losses	129	133
Adjustment due to sale of receivables	(1)	(8)
Foreign currency translation adjustment	8	3
Balance at end of year	365	343
Allowance for Credit Losses
Individually evaluated for impairment			$ 149	$ 85
Collectively evaluated for impairment			216	258
Allowance, Ending balance	343	338	365	343
Recorded Investment in Finance Receivables
Individually evaluated for impairment			942	786
Collectively evaluated for impairment			26,549	25,769
Recorded Investment in Finance Receivables, Ending Balance			27,491	26,555
Customer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	331	327	353	331
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	331	327
Receivables written off	(157)	(158)
Recoveries on receivables previously written off	43	35
Provision for credit losses	129	132
Adjustment due to sale of receivables	(1)	(8)
Foreign currency translation adjustment	8	3
Balance at end of year	353	331
Allowance for Credit Losses
Individually evaluated for impairment			149	85
Collectively evaluated for impairment			204	246
Allowance, Ending balance	331	327	353	331
Recorded Investment in Finance Receivables
Individually evaluated for impairment			942	786
Collectively evaluated for impairment			18,847	18,859
Recorded Investment in Finance Receivables, Ending Balance			19,789	19,645
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	10	9	9	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	(1)	1
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of year	9	10
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			9	10
Allowance, Ending balance	10	9	9	10
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,241	4,479
Recorded Investment in Finance Receivables, Ending Balance			4,241	4,479
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	2	2	3	2
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	2	2
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	1	0
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of year	3	2
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			3	2
Allowance, Ending balance	$ 2	$ 2	3	2
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			3,461	2,431
Recorded Investment in Finance Receivables, Ending Balance			$ 3,461	$ 2,431

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Period after which collection of future income is considered as not probable	120 days
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 845	$ 696
Current	26,646	25,859
Recorded Investment in Finance Receivables	27,491	26,555
91 Plus, Still Accruing	38	19
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	195	149
61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	199	82
91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	451	465
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,789	19,645
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	128	125
Current	8,040	8,051
Recorded Investment in Finance Receivables	8,168	8,176
91 Plus, Still Accruing	8	5
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	71	50
Customer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	15	16
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	42	59
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	77	67
Current	2,718	2,388
Recorded Investment in Finance Receivables	2,795	2,455
91 Plus, Still Accruing	13	6
Customer | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	21	16
Customer | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	10	12
Customer | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	46	39
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	39	40
Current	2,520	1,944
Recorded Investment in Finance Receivables	2,559	1,984
91 Plus, Still Accruing	5	4
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	18	18
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	7	7
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	14	15
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	64	68
Current	1,751	1,756
Recorded Investment in Finance Receivables	1,815	1,824
91 Plus, Still Accruing	9	2
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	3	3
Customer | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	2
Customer | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	60	63
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	234	287
Current	1,546	1,808
Recorded Investment in Finance Receivables	1,780	2,095
91 Plus, Still Accruing	0	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	37	40
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	55	33
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	142	214
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	196	93
Current	2,476	3,018
Recorded Investment in Finance Receivables	2,672	3,111
91 Plus, Still Accruing	1	1
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	20	11
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	32	9
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	144	73
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,241	4,479
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,394	2,705
Recorded Investment in Finance Receivables	2,394	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	417	336
Recorded Investment in Finance Receivables	417	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	578	582
Recorded Investment in Finance Receivables	578	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	72	0
Current	773	848
Recorded Investment in Finance Receivables	845	848
91 Plus, Still Accruing	0	0
Dealer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	72	0
Dealer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2	2
Recorded Investment in Finance Receivables	2	2
91 Plus, Still Accruing	0	0
Dealer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	3,461	2,431
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	31	15
Current	2,010	1,303
Recorded Investment in Finance Receivables	2,041	1,318
91 Plus, Still Accruing	2	1
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	24	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	2	1
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	4	1
Current	344	268
Recorded Investment in Finance Receivables	348	269
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	0
Caterpillar Purchased Receivables | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	2	0
Caterpillar Purchased Receivables | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	1
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	630	475
Recorded Investment in Finance Receivables	630	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	0	0
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	0	0
Recorded Investment in Finance Receivables	0	0
91 Plus, Still Accruing	0	0
Caterpillar Purchased Receivables | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	437	366
Recorded Investment in Finance Receivables	437	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	5	3
Recorded Investment in Finance Receivables	5	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 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Customer
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	$ 424	$ 530
Unpaid Principal Balance With No Allowance Recorded	435	528
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	518	256
Unpaid Principal Balance With An Allowance Recorded	530	265
Related Allowance	149	85
Recorded Investment, Total	942	786
Unpaid Principal Balance, Total	965	793
Related Allowance, Total	149	85
Average Recorded Investment With No Allowance Recorded	496	481	$ 332
Interest Income Recognized With No Allowance Recorded	23	18	10
Average Recorded Investment With An Allowance Recorded	365	211	277
Interest Income Recognized With An Allowance Recorded	13	7	10
Average Recorded Investment, Total	861	692	609
Interest Income Recognized, Total	36	25	20
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	19	10
Unpaid Principal Balance With No Allowance Recorded	19	10
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	44	61
Unpaid Principal Balance With An Allowance Recorded	43	60
Related Allowance	17	22
Recorded Investment, Total	63	71
Unpaid Principal Balance, Total	62	70
Related Allowance, Total	17	22
Average Recorded Investment With No Allowance Recorded	13	18	12
Interest Income Recognized With No Allowance Recorded	1	1	1
Average Recorded Investment With An Allowance Recorded	49	34	9
Interest Income Recognized With An Allowance Recorded	1	0	0
Average Recorded Investment, Total	62	52	21
Interest Income Recognized, Total	2	1	1
Customer | Europe
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	45	49
Unpaid Principal Balance With No Allowance Recorded	45	48
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	9	7
Unpaid Principal Balance With An Allowance Recorded	8	7
Related Allowance	5	3
Recorded Investment, Total	54	56
Unpaid Principal Balance, Total	53	55
Related Allowance, Total	5	3
Average Recorded Investment With No Allowance Recorded	48	46	42
Interest Income Recognized With No Allowance Recorded	1	1	1
Average Recorded Investment With An Allowance Recorded	6	11	14
Interest Income Recognized With An Allowance Recorded	0	1	1
Average Recorded Investment, Total	54	57	56
Interest Income Recognized, Total	1	2	2
Customer | Asia/Pacific
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	34	3
Unpaid Principal Balance With No Allowance Recorded	33	2
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	8	50
Unpaid Principal Balance With An Allowance Recorded	8	50
Related Allowance	2	8
Recorded Investment, Total	42	53
Unpaid Principal Balance, Total	41	52
Related Allowance, Total	2	8
Average Recorded Investment With No Allowance Recorded	24	2	2
Interest Income Recognized With No Allowance Recorded	2	0	0
Average Recorded Investment With An Allowance Recorded	31	37	44
Interest Income Recognized With An Allowance Recorded	2	3	2
Average Recorded Investment, Total	55	39	46
Interest Income Recognized, Total	4	3	2
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	121	129
Unpaid Principal Balance With No Allowance Recorded	121	129
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	0	0
Unpaid Principal Balance With An Allowance Recorded	0	0
Related Allowance	0	0
Recorded Investment, Total	121	129
Unpaid Principal Balance, Total	121	129
Related Allowance, Total	0	0
Average Recorded Investment With No Allowance Recorded	126	98	75
Interest Income Recognized With No Allowance Recorded	7	4	3
Average Recorded Investment With An Allowance Recorded	0	13	39
Interest Income Recognized With An Allowance Recorded	0	0	1
Average Recorded Investment, Total	126	111	114
Interest Income Recognized, Total	7	4	4
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	45	68
Unpaid Principal Balance With No Allowance Recorded	45	68
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	95	93
Unpaid Principal Balance With An Allowance Recorded	106	104
Related Allowance	42	34
Recorded Investment, Total	140	161
Unpaid Principal Balance, Total	151	172
Related Allowance, Total	42	34
Average Recorded Investment With No Allowance Recorded	64	47	31
Interest Income Recognized With No Allowance Recorded	3	1	0
Average Recorded Investment With An Allowance Recorded	99	66	56
Interest Income Recognized With An Allowance Recorded	4	2	3
Average Recorded Investment, Total	163	113	87
Interest Income Recognized, Total	7	3	3
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	160	271
Unpaid Principal Balance With No Allowance Recorded	172	271
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	362	45
Unpaid Principal Balance With An Allowance Recorded	365	44
Related Allowance	83	18
Recorded Investment, Total	522	316
Unpaid Principal Balance, Total	537	315
Related Allowance, Total	83	18
Average Recorded Investment With No Allowance Recorded	221	270	170
Interest Income Recognized With No Allowance Recorded	9	11	5
Average Recorded Investment With An Allowance Recorded	180	50	115
Interest Income Recognized With An Allowance Recorded	6	1	3
Average Recorded Investment, Total	401	320	285
Interest Income Recognized, Total	15	12	8
Dealer
Financing Receivable, Impaired
Recorded Investment, Total	0	0	0
Average Recorded Investment, Total	0	0	0
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	0	0	0
Average Recorded Investment, Total	$ 0	$ 0	$ 0

Finance Receivables (Details 6)

Finance Receivables (Details 6) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 683	$ 579
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	38	66
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	37	35
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	10	12
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	63	69
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	192	307
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	343	90
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	0	0
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 1	$ 1

Finance Receivables (Details 7)

Finance Receivables (Details 7) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)contracts	Dec. 31, 2016USD ($)contracts	Dec. 31, 2015USD ($)contracts
Finance receivables modified as TDRs
Number of Contracts | contracts	144	574	94
Pre-TDR Recorded Investment	$ 579	$ 454	$ 354
Post-TDR Recorded Investment	557	387	$ 338
TDRs with a payment default which had been modified within twelve months prior to the default date
Remaining commitments	$ 0	$ 11
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0
Customer
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	252	15	19
Post-TDR Recorded Investment	$ 21	$ 5	$ 2
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	43	25	14
Pre-TDR Recorded Investment	$ 34	$ 25	$ 1
Post-TDR Recorded Investment	$ 35	$ 25	$ 1
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	4	5	7
Post-TDR Recorded Investment	$ 3	$ 2	$ 1
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts | contracts	4	43	23
Pre-TDR Recorded Investment	$ 1	$ 12	$ 2
Post-TDR Recorded Investment	$ 1	$ 9	$ 2
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	1	5	0
Post-TDR Recorded Investment	$ 0	$ 2	$ 0
Customer | Asia/Pacific
Finance receivables modified as TDRs
Number of Contracts | contracts	10	31	21
Pre-TDR Recorded Investment	$ 39	$ 29	$ 26
Post-TDR Recorded Investment	$ 31	$ 28	$ 26
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	4	1	0
Post-TDR Recorded Investment	$ 1	$ 0	$ 0
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts	2	4	4
Pre-TDR Recorded Investment	$ 57	$ 74	$ 65
Post-TDR Recorded Investment	$ 56	$ 66	$ 65
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	17	437	11
Pre-TDR Recorded Investment	$ 26	$ 118	$ 1
Post-TDR Recorded Investment	$ 27	$ 82	$ 2
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	243	4	12
Post-TDR Recorded Investment	$ 17	$ 1	$ 1
Customer | Latin America | Amounts related to four customers
Finance receivables modified as TDRs
Number of Contracts | contracts		321
Pre-TDR Recorded Investment		$ 94
Post-TDR Recorded Investment		$ 64
Customer | Latin America | Amounts related to two customers
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	238
Post-TDR Recorded Investment	$ 16
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	68	34	21
Pre-TDR Recorded Investment	$ 422	$ 196	$ 259
Post-TDR Recorded Investment	$ 407	$ 177	$ 242
Customer | Caterpillar Power Finance | Amounts related to six customers
Finance receivables modified as TDRs
Number of Contracts | contracts	48
Pre-TDR Recorded Investment	$ 265
Post-TDR Recorded Investment	$ 258

Equipment on Operating Leases50

Equipment on Operating Leases (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Scheduled minimum rental payments for operating leases
2,018	$ 799
2,019	517
2,020	264
2,021	113
2,022	43
Thereafter	11
Total	1,747
Equipment leased to others
Equipment on operating leases
Equipment on operating leases, at cost	5,204	$ 5,395
Less: Accumulated depreciation	(1,636)	(1,687)
Equipment on operating leases, net	$ 3,568	$ 3,708

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Customer and other miscellaneous receivables	$ 457	$ 417
Collateral held for resale, at net realizable value	432	654
Other	136	180
Total other assets	1,025	1,251
Caterpillar
Other	$ 31	$ 21

Concentration of Credit Risk (D

Concentration of Credit Risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Concentration Risk
Derivatives, Maximum exposure to credit loss	$ 22	$ 72
Construction related industries
Concentration Risk
Concentration Risk, Percentage	33.00%	33.00%
North America
Concentration Risk
Concentration Risk, Percentage	60.00%	60.00%

Credit Commitments (Details)

Credit Commitments (Details) $ in Millions	6 Months Ended	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Line of Credit Facility
Number of global credit facilities	3	3
Caterpillar's consolidated net worth	$ 13,720	$ 13,720
Minimum net worth required under the Credit Facility	$ 9,000	$ 9,000
Covenant interest coverage ratio, Numerator		1.88
Covenant interest coverage ratio, Denominator		1
Minimum interest coverage ratio, required by the Credit Facility, Numerator		1.15
Minimum interest coverage ratio, required by the Credit Facility, Denominator		1
Leverage Ratio, Numerator	7.38	7.71
Leverage Ratio, Denominator	1	1
Maximum Leverage Ratio, Permissible Under Credit Facility, Numerator		10
Maximum Leverage Ratio, Permissible Under Credit Facility, Denominator		1
Amount available	$ 10,500	$ 10,500
Short-term borrowings, Balance	4,836	4,836	$ 7,094
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,790	2,790
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140	$ 2,140
Term lending agreements, maximum remaining maturity		10 years
Notes receivable from Caterpillar	559	$ 559	530	$ 490
Notes payable to Caterpillar	1,638	1,638	1,637	$ 1,096
Amount available, Committed credit facility extended to Caterpillar	2,000	2,000
Amount outstanding, Committed credit facility extended to Caterpillar	0	0
Revolving credit facilities
Line of Credit Facility
Amount outstanding	0	0
Revolving credit facilities | Cat Financial
Line of Credit Facility
Amount available	7,750	7,750
364-day facility
Line of Credit Facility
Amount available	3,150	3,150
364-day facility | Cat Financial
Line of Credit Facility
Amount available	2,330	2,330
Three-year facility
Line of Credit Facility
Amount available	2,730	2,730
Three-year facility | Cat Financial
Line of Credit Facility
Amount available	2,010	2,010
Five-year facility
Line of Credit Facility
Amount available	4,620	4,620
Five-year facility | Cat Financial
Line of Credit Facility
Amount available	3,410	3,410
Credit lines with banks
Line of Credit Facility
Amount available	4,590	4,590
Amount outstanding	1,480	1,480	1,420
Variable denomination floating rate demand notes
Line of Credit Facility
Short-term borrowings, Balance	481	481	$ 556
Maximum amount of variable denomination floating rate demand notes outstanding	$ 1,250	$ 1,250

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Short-term Debt
Short-term borrowings, Balance	$ 4,836	$ 7,094
Commercial paper, net
Short-term Debt
Short-term borrowings, Balance	$ 3,680	$ 5,985
Short-term borrowings, Avg. Rate	1.10%	0.90%
Bank borrowings
Short-term Debt
Short-term borrowings, Balance	$ 675	$ 553
Short-term borrowings, Avg. Rate	5.20%	7.50%
Variable denomination floating rate demand notes
Short-term Debt
Short-term borrowings, Balance	$ 481	$ 556
Short-term borrowings, Avg. Rate	1.10%	0.90%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument
Medium-term notes, maximum remaining maturity	9 years
Long-term debt	$ 22,106	$ 20,537
Long-term debt outstanding maturity:
2,018	6,188
2,019	5,681
2,020	4,290
2,021	1,740
2,022	2,048
Thereafter	2,159
Total	22,106	20,537
Medium-term notes, callable	148
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	$ 0
Medium-term notes
Debt Instrument
Long-term debt issued	7,290
Long-term debt issued at fixed interest rates	4,890
Long-term debt issued at floating interest rates	2,400
Long term debt, gross	21,362	19,731
Unamortized discount and debt issuance costs	(59)	(64)
Long-term debt	$ 21,303	$ 19,667
Long-term debt, Avg. Rate	2.50%	2.40%
Long-term debt outstanding maturity:
Total	$ 21,303	$ 19,667
Bank borrowings
Debt Instrument
Long-term debt	$ 803	$ 870
Long-term debt, Avg. Rate	5.00%	4.50%
Long-term debt outstanding maturity:
Total	$ 803	$ 870

Derivative Financial Instrume56

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

Derivative Financial Instrume57

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value
Asset Fair Value	$ 22	$ 72
Liability Fair Value	(68)	(8)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	(49)	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	(2)	(1)
Designated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	7	29
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(57)	(3)
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	3	35
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	12	12
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(9)	(4)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	$ 0	$ 27

Derivative Financial Instrume58

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivative
Derivative instruments, notional amount	$ 3,690	$ 2,630

Derivative Financial Instrume59

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Designated derivatives | Fair value hedges | Interest rate contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ (2)	$ (12)	$ (27)
Gains (Losses) on Borrowings	2	11	26
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(77)	23	3
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	(72)	25	(5)
Recognized in Earnings (Ineffective Portion)	0	0	0
Designated derivatives | Cash flow hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	0	8	2
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	3	(3)	(6)
Recognized in Earnings (Ineffective Portion)	0	0	0
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)	6
Recognized in Earnings (Ineffective Portion)	0
Designated derivatives | Cash flow hedges | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(77)	15	1
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	(81)	28	1
Recognized in Earnings (Ineffective Portion)	0	0	0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	9	(24)	(34)
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	14	(10)	(50)
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ (5)	$ (14)	$ 16

Derivative Financial Instrume60

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Offsetting Assets and Liabilities
Gross Amount of Recognized Assets	$ 22	$ 72
Gross Amounts Offset	0	0
Net Amount of Assets	22	72
Gross Amounts Not Offset	(10)	(7)
Net Amount	12	65
Gross Amount of Recognized Liabilities	(68)	(8)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(68)	(8)
Gross Amounts Not Offset	10	7
Net Amount	$ (58)	$ (1)

Accumulated Other Comprehensi61

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	$ (995)	$ (897)	$ (364)
Other comprehensive income/(loss) before reclassifications	358	(82)	(536)
Amounts reclassified from accumulated other comprehensive (income)/loss	45	(16)	3
Other comprehensive income/(loss)	403	(98)	(533)
Balance at end of year	(592)	(995)	(897)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	(994)	(897)	(359)
Other comprehensive income/(loss) before reclassifications	407	(97)	(538)
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0
Other comprehensive income/(loss)	407	(97)	(538)
Balance at end of year	(587)	(994)	(897)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	(1)	0	(5)
Other comprehensive income/(loss) before reclassifications	(49)	15	2
Amounts reclassified from accumulated other comprehensive (income)/loss	45	(16)	3
Other comprehensive income/(loss)	(4)	(1)	5
Balance at end of year	$ (5)	$ (1)	$ 0

Accumulated Other Comprehensi62

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017		Dec. 31, 2016		Dec. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)									$ (15)		$ (15)		$ (27)
Interest Expense									(667)		(611)		(593)
Reclassifications before tax	$ 133	$ 126	$ 164	$ 167	$ 122	$ 146	$ 148	$ 145	590		561		619
Tax (provision) benefit									4		(171)		(158)
Total reclassifications from Accumulated other comprehensive income/(loss)	$ 271	$ 86	$ 114	$ 115	$ 85	$ 97	$ 102	$ 100	586	[1]	384	[1]	460	[1]
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax									(72)		25		(5)
Tax (provision) benefit									27		(9)		2
Total reclassifications from Accumulated other comprehensive income/(loss)									(45)		16		(3)
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments | Cross currency contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)									(81)		28		1
Interest Expense									6		0		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 Expense									$ 3		$ (3)		$ (6)
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Commitments and Contingent Li63

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Guarantees
Related recorded liability		$ 1
Guarantees, maximum potential amount of future payments	$ 91	43
SPC's assets in Consolidated Statements of Financial Position	1,110	1,090
SPC's liabilities in Consolidated Statements of Financial Position	1,110	1,090
Unused commitments and lines of credit for dealers	11,210	12,970
Unused commitments and lines of credit for customers	3,090	$ 3,340
Commitment to purchase corporate headquarters building	91
Maximum
Guarantees
Related recorded liability	$ 1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Provisional net benefit related to U.S. 2017 Tax Reform, estimated impact	$ 151
Estimated write-down of net deferred tax liabilities	$ 334	$ 0	$ 0
U.S. statutory tax rate (as a percent)	35.00%	35.00%	35.00%
U.S. statutory tax rate (as a percent) under U.S. 2017 Tax Reform	21.00%
Estimated cost of a mandatory deemed repatriation of non-U.S. earnings	$ 183	$ 0	$ 0
Resulting tax liability, net of foreign tax credits, estimated cost of a mandatory deemed repatriation of non-U.S. earnings	$ 131
U.S. federal tax cost for mandatory deemed repatriation for non-US earnings held in liquid assets (as a percent)	15.50%
U.S. federal tax cost for mandatory deemed repatriation for non-US earnings held in non-liquid assets (as a percent)	8.00%
Reconciliation of statutory rate to effective income tax rate
Taxes computed at U.S. statutory rates	$ 206	$ 196	$ 217
U.S. statutory tax rate (as a percent)	35.00%	35.00%	35.00%
(Decreases) increases in taxes resulting from:
State Income Tax, net of Federal Tax	$ 2	$ 2	$ 3
State Income Tax, net of Federal Tax (as a percent)	0.30%	0.40%	0.50%
Subsidiaries' results subject to tax rates other than U.S. statutory rates	$ (31)	$ (36)	$ (25)
Subsidiaries' results subject to tax rates other than U.S. statutory rates (as a percent)	(5.30%)	(6.50%)	(4.00%)
Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits	$ (16)	$ 2	$ (39)
Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (as a percent)	(2.70%)	0.30%	(6.30%)
Foreign currency translation taxed at non-U.S. subsidiaries	$ (12)	$ 13	$ 6
Foreign currency translation taxed at non-U.S subsidiaries (as a percent)	(2.00%)	2.30%	0.90%
U.S. deferred tax rate change	$ (334)	$ 0	$ 0
U.S. deferrd tax rate change (as a percent)	(56.60%)	0.00%	0.00%
Mandatory deemed repatriation of non-U.S. earnings	$ 183	$ 0	$ 0
Mandatory deemed repatriation of non-U.S. earnings (as a percent)	31.00%	0.00%	0.00%
Other, net	$ (2)	$ (6)	$ (4)
Other, net (as a percent)	(0.40%)	(1.10%)	(0.60%)
Provision (benefit) for income taxes	$ (4)	$ 171	$ 158
Provision (benefit) for income taxes, Effective Income Tax Rate (as a percent)	(0.70%)	30.40%	25.50%

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of Profit before income taxes
U.S.									$ 285	$ 249	$ 230
Non-U.S.									305	312	389
Profit before income taxes	$ 133	$ 126	$ 164	$ 167	$ 122	$ 146	$ 148	$ 145	590	561	619
Current income tax provision (benefit)
U.S.									157	(18)	(21)
Non-U.S.									102	111	109
State (U.S.)									1	0	2
Current income tax provision (benefit)									260	93	90
Deferred income tax provision (benefit)
U.S.									(239)	90	45
Non-U.S.									(28)	(15)	21
State (U.S.)									3	3	2
Deferred income tax provision (benefit)									(264)	78	68
Total Provision (benefit) for income taxes									$ (4)	$ 171	$ 158

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets
Deferred and refundable income taxes	$ 101	$ 89
Deferred tax liabilities
Deferred income taxes and other liabilities	(579)	(939)
Deferred income taxes, net	$ (478)	$ (850)

Income Taxes (Details 4)

Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Deferred income tax assets:
Allowance for credit losses	$ 96	$ 148
Tax carryforwards	43	73
Deferred tax assets, gross	139	221
Deferred income tax liabilities (primarily lease basis differences)	(441)	(693)
Valuation allowance for deferred income tax assets	(11)	(10)
Deferred income tax on translation adjustment	(165)	(368)
Deferred income taxes, net	$ (478)	$ (850)

Income Taxes (Details 5)

Income Taxes (Details 5) $ in Millions	Dec. 31, 2017USD ($)
U.S. state taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards	$ 153
Gross deferred income tax asset associated with NOL carryforwards	12
NOL carryforwards, Valuation allowance	1
U.S. state taxing jurisdictions | Expiration Date 2018
Net operating loss (NOL) carryforwards
NOL carryforwards	6
U.S. state taxing jurisdictions | Expiration Date 2019
Net operating loss (NOL) carryforwards
NOL carryforwards	4
U.S. state taxing jurisdictions | Expiration Date 2020
Net operating loss (NOL) carryforwards
NOL carryforwards	1
U.S. state taxing jurisdictions | Expiration Date 2021
Net operating loss (NOL) carryforwards
NOL carryforwards	5
U.S. state taxing jurisdictions | Expiration Date 2022-2037
Net operating loss (NOL) carryforwards
NOL carryforwards	137
Non-U.S. taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards	124
NOL carryforwards, Valuation allowance	10
Non-U.S. taxing jurisdictions | Expiration Date 2018
Net operating loss (NOL) carryforwards
NOL carryforwards	0
Non-U.S. taxing jurisdictions | Expiration Date 2019
Net operating loss (NOL) carryforwards
NOL carryforwards	0
Non-U.S. taxing jurisdictions | Expiration Date 2020
Net operating loss (NOL) carryforwards
NOL carryforwards	0
Non-U.S. taxing jurisdictions | Expiration Date 2021
Net operating loss (NOL) carryforwards
NOL carryforwards	26
Non-U.S. taxing jurisdictions | Expiration Date 2022-2037
Net operating loss (NOL) carryforwards
NOL carryforwards	45
Non-U.S. taxing jurisdictions | Unlimited
Net operating loss (NOL) carryforwards
NOL carryforwards	$ 53

Income Taxes (Details 6)

Income Taxes (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of unrecognized income tax benefits
Unrecognized tax benefits, beginning of year	$ 4	$ 0
Additions for income tax positions related to current year	0	1
Additions for income tax positions related to prior year	0	3
Reductions for income tax positions related to settlements	(4)	0
Unrecognized tax benefits, end of year	0	4	$ 0
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	0	0
Recognized interest and penalties	2
Accrued interest and penalties		2
Maximum
Reconciliation of unrecognized income tax benefits
Recognized interest and penalties		$ (1)	$ 1
Accrued interest and penalties	$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Recurring basis | Level 2
Assets
Derivative financial instruments, net asset (liability) position	$ (46)	$ 64

Fair Value Measurements (Deta71

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Fair value of impaired loans	$ 341	$ 137

Fair Value Measurements (Deta72

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	$ (4,836)	$ (7,094)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	708	1,795
Restricted cash and cash equivalents	24	29
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(4,836)	(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	12	12
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a net payable position	(2)	(1)
Foreign currency contracts, in a payable position	(9)	(4)
Long-term debt	(22,230)	(20,724)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,019	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	708	1,795
Finance receivables, net (excluding finance leases)	20,063	20,101
Interest rate contracts, in a net receivable position	3	4
Foreign currency contracts, in a receivable position	12	12
Restricted cash and cash equivalents	24	29
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a net payable position	(2)	(1)
Foreign currency contracts, in a payable position	(9)	(4)
Short-term borrowings	(4,836)	(7,094)
Long-term debt	(22,106)	(20,537)
Guarantees	0	(1)
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases	7,060	6,110
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign currency contracts, in a receivable position	7	56
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign currency contracts, in a payable position	(57)	(3)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign currency contracts, in a receivable position	7	56
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign currency contracts, in a payable position	$ (57)	$ (3)

Transactions with Related Par73

Transactions with Related Parties (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction
Dividend paid to Caterpillar									$ 725	$ 275	$ 600
Maximum borrowing capacity from Caterpillar, Variable lending agreements	$ 2,790								2,790
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140								2,140
Amount available, Committed credit facility extended to Caterpillar	2,000								2,000
Notes payable to Caterpillar	1,638				$ 1,637				1,638	1,637	1,096
Notes receivable from Caterpillar	559				530				559	530	490
Discounts earned on purchased receivables									253	207	222
Total revenues	678	$ 673	$ 676	$ 662	642	$ 651	$ 659	$ 643	2,689	2,595	2,673
Depreciation on equipment leased to others									810	841	836
Caterpillar
Related Party Transaction
Dividend paid to Caterpillar									725	275	600
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,790								2,790
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140								2,140
Amount available, Committed credit facility extended to Caterpillar	2,000								2,000
Interest expense, Caterpillar									21	15	6
Interest income on Notes Receivable with Caterpillar									74	30	21
Fees on committed credit facility extended to Caterpillar									40	40	40
Purchases of receivables from Caterpillar									34,667	28,631	33,154
Discounts earned on purchased receivables									253	207	222
Balance of purchased receivables	3,461				2,431				3,461	2,431	2,601
Marketing program payments received									250	233	188
Total portfolio, which includes finance receivables and equipment on operating lease, net of depreciation	17				18				17	18
Total revenues									4	8	9
Depreciation on equipment leased to others									3	7	7
Amount of our portfolio that is subject to guarantees by Caterpillar	$ 481				$ 403				481	403
Charges for employee medical plans and postretirement benefit plans administered by Caterpillar									31	29	29
Contributions to defined benefit plans									8	7	7
Stock based compensation expense									8	9	12
Operational and administrative support charges reimbursed to Caterpillar									30	28	37
Administrative support services to certain Caterpillar subsidiaries reimbursed by Caterpillar									$ 9	$ 9	$ 12

Leases (Details)

Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Leases [Abstract]
Rental expense for operating leases	$ 16	$ 17	$ 16
Minimum payments for operating leases having initial or remaining non-cancelable terms
2,018	8
2,019	6
2,020	4
2,021	3
2,022	3
Thereafter	3
Total	27
Commitment to purchase corporate headquarters building	$ 91

Segment and Geographic Inform75

Segment and Geographic Information (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information
External Revenues	$ 678	$ 673	$ 676	$ 662	$ 642	$ 651	$ 659	$ 643	$ 2,689	$ 2,595	$ 2,673
Profit before income taxes	133	$ 126	$ 164	$ 167	122	$ 146	$ 148	$ 145	590	561	619
Interest Expense									667	611	593
Depreciation on equipment leased to others									810	841	836
Provision for credit losses									132	135	119
Assets	33,160				33,615				33,160	33,615	33,867
Capital expenditures									1,373	1,636	1,461
Operating Segments
Segment Reporting Information
External Revenues									2,630	2,547	2,638
Profit before income taxes									664	620	691
Interest Expense									645	604	600
Depreciation on equipment leased to others									808	838	836
Provision for credit losses									137	138	117
Assets	31,888				32,383				31,888	32,383	32,423
Capital expenditures									1,365	1,627	1,449
Unallocated
Segment Reporting Information
External Revenues									90	80	65
Profit before income taxes									(220)	(138)	(101)
Interest Expense									193	116	67
Depreciation on equipment leased to others									0	0	0
Provision for credit losses									0	0	0
Assets	1,719				1,688				1,719	1,688	1,743
Capital expenditures									8	6	9
Timing
Segment Reporting Information
External Revenues									(31)	(32)	(30)
Profit before income taxes									(6)	(12)	(32)
Interest Expense									0	0	0
Depreciation on equipment leased to others									2	3	0
Provision for credit losses									(5)	(3)	2
Assets	53				27				53	27	164
Capital expenditures									0	3	3
Methodology
Segment Reporting Information
External Revenues									0	0	0
Profit before income taxes									152	91	61
Interest Expense									(171)	(109)	(74)
Depreciation on equipment leased to others									0	0	0
Provision for credit losses									0	0	0
Assets	(256)				(220)				(256)	(220)	(216)
Capital expenditures									0	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues									0	0	0
Profit before income taxes									0	0	0
Interest Expense									0	0	0
Depreciation on equipment leased to others									0	0	0
Provision for credit losses									0	0	0
Assets	(244)				(263)				(244)	(263)	(247)
Capital expenditures									0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues									1,337	1,230	1,156
Profit before income taxes									353	326	370
Interest Expense									306	287	261
Depreciation on equipment leased to others									520	477	409
Provision for credit losses									36	28	7
Assets	14,790				14,925				14,790	14,925	14,419
Capital expenditures									992	1,174	1,118
Europe | Operating Segments
Segment Reporting Information
External Revenues									307	268	284
Profit before income taxes									116	86	96
Interest Expense									37	33	31
Depreciation on equipment leased to others									80	83	76
Provision for credit losses									4	0	3
Assets	4,332				3,834				4,332	3,834	3,758
Capital expenditures									103	147	136
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues									267	254	285
Profit before income taxes									99	82	65
Interest Expense									87	81	100
Depreciation on equipment leased to others									25	29	21
Provision for credit losses									(5)	3	29
Assets	4,214				3,620				4,214	3,620	3,923
Capital expenditures									6	74	37
Latin America and CPF | Operating Segments
Segment Reporting Information
External Revenues									447	487	533
Profit before income taxes									47	77	108
Interest Expense									165	156	152
Depreciation on equipment leased to others									41	61	104
Provision for credit losses									94	100	64
Assets	6,153				7,270				6,153	7,270	7,376
Capital expenditures									54	26	89
Mining | Operating Segments
Segment Reporting Information
External Revenues									272	308	380
Profit before income taxes									49	49	52
Interest Expense									50	47	56
Depreciation on equipment leased to others									142	188	226
Provision for credit losses									8	7	14
Assets	$ 2,399				$ 2,734				2,399	2,734	2,947
Capital expenditures									$ 210	$ 206	$ 69

Segment and Geographic Inform76

Segment and Geographic Information (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets
External Revenues	$ 678	$ 673	$ 676	$ 662	$ 642	$ 651	$ 659	$ 643	$ 2,689	$ 2,595	$ 2,673
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	3,630				3,770				3,630	3,770
Inside U.S.
Revenues from External Customers and Long-Lived Assets
External Revenues									1,551	1,397	1,330
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	2,554				2,401				2,554	2,401
Inside Canada
Revenues from External Customers and Long-Lived Assets
External Revenues									157	171	198
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	413				535				413	535
Inside Australia
Revenues from External Customers and Long-Lived Assets
External Revenues									139	176	200
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	113				250				113	250
All other
Revenues from External Customers and Long-Lived Assets
External Revenues									842	851	$ 945
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	$ 550				$ 584				$ 550	$ 584

Selected Quarterly Financial 77

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017		Dec. 31, 2016		Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 678	$ 673	$ 676	$ 662	$ 642	$ 651	$ 659	$ 643	$ 2,689		$ 2,595		$ 2,673
Profit before income taxes	133	126	164	167	122	146	148	145	590		561		619
Profit	$ 271	$ 86	$ 114	$ 115	$ 85	$ 97	$ 102	$ 100	$ 586	[1]	$ 384	[1]	$ 460	[1]
[1]	Profit attributable to Caterpillar Financial Services Corporation.