Caterpillar Financial Services 10-Q 7 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2018	Aug. 07, 2018
Entity Information
Entity Registrant Name	CATERPILLAR FINANCIAL SERVICES CORPORATION
Entity Central Index Key	764,764
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Retail finance		$ 328	$ 307	$ 645	$ 615
Operating lease		257	245	501	490
Wholesale finance		105	78	196	143
Other, net		33	46	71	90
Total revenues		723	676	1,413	1,338
Expenses:
Interest		190	168	364	330
Depreciation on equipment leased to others		209	202	408	407
General, operating and administrative		107	109	217	206
Provision for credit losses		104	18	171	34
Other		8	13	17	24
Total expenses		618	510	1,177	1,001
Other income (expense)		(5)	(2)	(12)	(6)
Profit before income taxes		100	164	224	331
Provision for income taxes		24	49	53	99
Profit of consolidated companies		76	115	171	232
Less: Profit attributable to noncontrolling interests		5	1	9	3
Profit	[1]	$ 71	$ 114	$ 162	$ 229
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 76	$ 115	$ 171	$ 232
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	(262)	161	(191)	241
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	99	(15)	73	(27)
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	(96)	16	(76)	30
Available-for-sale securities
Gains (losses) deferred, net of tax (expense)/benefit	0	1	0	1
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	0	0	0	0
Total Other comprehensive income (loss), net of tax	(259)	163	(194)	245
Comprehensive income (loss)	(183)	278	(23)	477
Less: Comprehensive income (loss) attributable to the noncontrolling interests	(3)	4	7	6
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ (180)	$ 274	$ (30)	$ 471

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ (31)	$ 54	$ (15)	$ 64
Derivative financial instruments:
Gains (losses) deferred, tax	(29)	8	(22)	14
(Gains) losses reclassified to earnings, tax	28	(9)	23	(16)
Available-for-sale securities
Gains (losses) deferred, tax	0	0	0	0
(Gains) losses reclassified to earnings, tax	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 751	$ 708
Finance receivables, net	27,739	27,126
Notes receivable from Caterpillar	646	559
Equipment on operating leases, less accumulated depreciation	3,633	3,568
Deferred and refundable income taxes	188	174
Other assets	1,132	1,025
Total assets	34,089	33,160
Liabilities and shareholder's equity:
Payable to dealers and others	148	190
Payable to Caterpillar - other	63	85
Accrued expenses	228	274
Income taxes payable	145	158
Payable to Caterpillar - borrowings	1,523	1,638
Short-term borrowings	6,185	4,836
Current maturities of long-term debt	6,241	6,188
Long-term debt	15,717	15,918
Deferred income taxes and other liabilities	598	609
Total liabilities	30,848	29,896
Commitments and contingent liabilities (Notes 7 and 9)
Common stock - $1 par value Authorized: 2,000 shares; Issued and outstanding: one share (at paid-in amount)	745	745
Additional paid-in capital	2	2
Retained earnings	3,131	2,969
Accumulated other comprehensive income/(loss)	(784)	(592)
Noncontrolling interests	147	140
Total shareholder's equity	3,241	3,264
Total liabilities and shareholder's equity	$ 34,089	$ 33,160

Consolidated Statements of Fin6

Consolidated Statements of Financial Position (Parentheticals) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Shareholder's Equity:
Common stock - par value	$ 1	$ 1
Common stock - authorized	2,000	2,000
Common stock - issued	1	1
Common stock - outstanding	1	1

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholder's Equity - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Noncontrolling interests
Balance at Dec. 31, 2016	$ 2,985	$ 745	$ 2	$ 3,108	$ (995)	$ 125
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	232			229		3
Foreign currency translation, net of tax	241				238	3
Derivative financial instruments, net of tax	3				3
Available-for-sale securities, net of tax	1				1
Balance at Jun. 30, 2017	3,462	745	2	3,337	(753)	131
Balance at Dec. 31, 2017	3,264	745	2	2,969	(592)	140
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	171			162		9
Foreign currency translation, net of tax	(191)				(189)	(2)
Derivative financial instruments, net of tax	(3)				(3)
Available-for-sale securities, net of tax	0				0
Balance at Jun. 30, 2018	$ 3,241	$ 745	$ 2	$ 3,131	$ (784)	$ 147

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Profit of consolidated companies	$ 171	$ 232
Adjustments for non-cash items:
Depreciation and amortization	414	412
Amortization of receivables purchase discount	(177)	(121)
Provision for credit losses	171	34
Other, net	67	0
Changes in assets and liabilities:
Receivables from others	(7)	65
Other receivables/payables with Caterpillar	(34)	(7)
Payable to dealers and others	(42)	(33)
Accrued interest payable	10	15
Accrued expenses and other liabilities, net	(33)	(22)
Income taxes payable	(42)	49
Settlements of designated derivatives	11	(1)
Net cash provided by operating activities	509	623
Cash flows from investing activities:
Expenditures for equipment on operating leases	(799)	(706)
Capital expenditures - excluding equipment on operating leases	(95)	(4)
Proceeds from disposals of equipment	454	502
Additions to finance receivables	(6,823)	(6,240)
Collections of finance receivables	6,142	6,601
Net changes in Caterpillar purchased receivables	(608)	(425)
Proceeds from sales of receivables	124	83
Net change in variable lending to Caterpillar	(39)	(1,570)
Additions to other notes receivable with Caterpillar	(90)	0
Collections on other notes receivable with Caterpillar	42	37
Settlements of undesignated derivatives	(4)	17
Net cash provided by (used for) investing activities	(1,696)	(1,705)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	(109)	5
Payments on borrowings with Caterpillar	0	(49)
Proceeds from debt issued (original maturities greater than three months)	4,307	4,507
Payments on debt issued (original maturities greater than three months)	(4,433)	(3,723)
Short-term borrowings, net (original maturities three months or less)	1,453	(305)
Net cash provided by (used for) financing activities	1,218	435
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(9)	13
Increase/(decrease) in cash, cash equivalents and restricted cash	22	(634)
Cash, cash equivalents and restricted cash at beginning of year	732	1,824
Cash, cash equivalents and restricted cash at end of period	$ 754	$ 1,190

Consolidated Statements of Cas9

Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Statement of Cash Flows [Abstract]
Restricted cash and cash equivalents	$ 3	$ 24

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated profit for the three and six months ended June 30, 2018 and 2017 , (b) the consolidated comprehensive income for the three and six months ended June 30, 2018 and 2017 , (c) the consolidated financial position as of June 30, 2018 and December 31, 2017 , (d) the consolidated changes in shareholder's equity for the six months ended June 30, 2018 and 2017 and (e) the consolidated cash flows for the six months ended June 30, 2018 and 2017 . The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), requires management to make estimates and assumptions that affect reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2017 ( 2017 Form 10-K) filed with the SEC on February 15, 2018. The December 31, 2017 financial position data included herein was derived from the audited consolidated financial statements included in the 2017 Form 10-K, but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform with current period financial statement presentation. We consolidate all variable interest entities (VIEs) where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 7 for more information. We have customers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Revenue recognition – In May 2014, the Financial Accounting Standards Board (FASB) issued new revenue recognition guidance to provide a single, comprehensive revenue recognition model for all contracts with customers. Under the new guidance, an entity will recognize revenue to depict the transfer of promised goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. A five step model has been introduced for an entity to apply when recognizing revenue. The new guidance also includes enhanced disclosure requirements. The guidance was effective January 1, 2018, and was applied on a modified retrospective basis. The adoption did not have a material impact on our financial statements. Recognition and measurement of financial assets and financial liabilities – In January 2016, the FASB issued accounting guidance that affects the accounting for equity investments, financial liabilities accounted for under the fair value option and the presentation and disclosure requirements for financial instruments. Under the new guidance, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification for equity securities with readily determinable fair values. For financial liabilities when the fair value option has been elected, changes in fair value due to instrument-specific credit risk will be recognized separately in other comprehensive income. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The guidance was effective January 1, 2018, and was applied on a modified retrospective basis. The adoption did not 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 substantially 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 except for certain targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model. Entities have the option to adopt the new guidance using a modified retrospective approach through a cumulative effect adjustment to retained earnings applied either to the beginning of the earliest period presented or the beginning of the period of adoption. In addition, the new guidance provides for certain practical expedients. The new guidance is effective January 1, 2019, with early adoption permitted. A team is currently designing new processes and controls, implementing a software solution and evaluating our population of leased assets to assess the effect of the new guidance on our financial statements. We also have a team evaluating the impact of the changes to lessor accounting. We plan to adopt the new guidance effective January 1, 2019 using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. 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 was applied on a retrospective basis. The adoption did not 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 guidance was effective January 1, 2018, and was applied on a retrospective basis. The adoption did not 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. We plan to adopt the new guidance effective January 1, 2019. Reclassification of certain tax effects from accumulated other comprehensive income – In February 2018, the FASB issued accounting guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. tax reform legislation. The new guidance is required to be applied either in the period of adoption or retrospectively to each period affected by U.S. tax reform legislation. The guidance is effective January 1, 2019, with early adoption permitted. We are in the process of evaluating the effect of the new guidance on our financial statements.

Finance Receivables

Finance Receivables	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Finance Receivables	Finance Receivables A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) June 30, December 31, Finance leases and installment sale contracts – Retail $ 15,340 $ 14,647 Retail notes receivable 8,736 9,417 Wholesale notes receivable 4,874 4,161 Finance leases and installment sale contracts – Wholesale 125 119 29,075 28,344 Less: Unearned income (920 ) (853 ) Recorded investment in finance receivables 28,155 27,491 Less: Allowance for credit losses (416 ) (365 ) Total finance receivables, net (1) $ 27,739 $ 27,126 (1) Includes $240 million of finance receivables classified as held for sale as of June 30, 2018 . 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. Our allowance for credit losses is segregated into three portfolio segments: • Customer - Finance receivables with retail customers. • Dealer - Finance receivables with Caterpillar dealers. • Caterpillar Purchased Receivables - Trade receivables purchased from Caterpillar entities. A portfolio segment is the level at which the Company develops a systematic methodology for determining its allowance for credit losses. We further evaluate our portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Typically, our finance receivables within a geographic area have similar credit risk profiles and methods for assessing and monitoring credit risk. Our classes, which align with management reporting for credit losses, are as follows: • North America - Finance receivables originated in the United States and Canada. • Europe - Finance receivables originated in Europe, Africa, the Middle East and the Commonwealth of Independent States. • Asia/Pacific - Finance receivables originated in Australia, New Zealand, China, Japan and Southeast Asia. • Mining - Finance receivables related to large mining customers worldwide and project financing in various countries. • Latin America - Finance receivables originated in Mexico and Central and South American countries. • Caterpillar Power Finance - Finance receivables originated worldwide related to marine vessels with Caterpillar engines and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. Our allowance for credit losses as of June 30, 2018 was $416 million or 1.48 percent of our recorded investment in finance receivables compared with $365 million or 1.33 percent as of December 31, 2017 . An analysis of the allowance for credit losses was as follows: (Millions of dollars) June 30, 2018 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 353 $ 9 $ 3 $ 365 Receivables written off (130 ) — — (130 ) Recoveries on receivables previously written off 20 — — 20 Provision for credit losses 170 (1 ) 1 170 Adjustment due to sale of receivables (3 ) — — (3 ) Foreign currency translation adjustment (6 ) — — (6 ) Balance at end of period $ 404 $ 8 $ 4 $ 416 Individually evaluated for impairment $ 205 $ — $ — $ 205 Collectively evaluated for impairment 199 8 4 211 Ending Balance $ 404 $ 8 $ 4 $ 416 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 828 $ — $ — $ 828 Collectively evaluated for impairment 18,922 4,299 4,106 27,327 Ending Balance $ 19,750 $ 4,299 $ 4,106 $ 28,155 (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 Credit quality of finance receivables At origination, we evaluate credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, we monitor credit quality based on past-due status and collection experience as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, we consider the entire recorded investment in finance receivable past due when any installment is over 30 days past due. The tables below summarize our recorded investment in finance receivables by aging category. (Millions of dollars) June 30, 2018 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 $ 72 $ 16 $ 43 $ 131 $ 8,138 $ 8,269 $ 7 Europe 31 12 106 149 2,659 2,808 42 Asia/Pacific 31 12 8 51 2,920 2,971 3 Mining 2 — 10 12 1,631 1,643 — Latin America 42 17 102 161 1,418 1,579 — Caterpillar Power Finance 37 61 250 348 2,132 2,480 30 Dealer North America — — — — 2,374 2,374 — Europe — — — — 546 546 — Asia/Pacific — — — — 519 519 — Mining — — — — 3 3 — Latin America — 1 77 78 777 855 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables (1) North America 15 6 15 36 2,608 2,644 Europe 1 — 1 2 396 398 Asia/Pacific — 2 3 5 739 744 Mining — — — — — — Latin America — — — — 311 311 Caterpillar Power Finance — — — — 9 9 Total $ 231 $ 127 $ 615 $ 973 $ 27,182 $ 28,155 $ 82 (1) Caterpillar Purchased Receivables are non-interest bearing trade receivables purchased at a discount. (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 (1) North America 24 5 2 31 2,010 2,041 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 $ 36 (1) Caterpillar Purchased Receivables are non-interest bearing trade receivables purchased at a discount. 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 June 30, 2018 and December 31, 2017 , 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 June 30, 2018 As of December 31, 2017 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 20 $ 20 $ — $ 19 $ 19 $ — Europe 6 6 — 45 45 — Asia/Pacific 30 30 — 34 33 — Mining 38 38 — 121 121 — Latin America 40 40 — 45 45 — Caterpillar Power Finance 139 159 — 160 172 — Total $ 273 $ 293 $ — $ 424 $ 435 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 49 $ 47 $ 23 $ 44 $ 43 $ 17 Europe 48 47 24 9 8 5 Asia/Pacific 3 3 1 8 8 2 Mining 62 62 21 — — — Latin America 50 50 37 95 106 42 Caterpillar Power Finance 343 345 99 362 365 83 Total $ 555 $ 554 $ 205 $ 518 $ 530 $ 149 Total Impaired Finance Receivables North America $ 69 $ 67 $ 23 $ 63 $ 62 $ 17 Europe 54 53 24 54 53 5 Asia/Pacific 33 33 1 42 41 2 Mining 100 100 21 121 121 — Latin America 90 90 37 140 151 42 Caterpillar Power Finance 482 504 99 522 537 83 Total $ 828 $ 847 $ 205 $ 942 $ 965 $ 149 (Millions of dollars) Three Months Ended Three Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 18 $ 1 $ 11 $ — Europe 7 — 48 1 Asia/Pacific 29 — 30 1 Mining 45 1 130 3 Latin America 43 — 67 — Caterpillar Power Finance 189 1 257 3 Total $ 331 $ 3 $ 543 $ 8 Impaired Finance Receivables With An Allowance Recorded North America $ 56 $ — $ 52 $ 1 Europe 48 1 5 — Asia/Pacific 5 — 30 — Mining 64 1 — — Latin America 65 1 107 1 Caterpillar Power Finance 356 3 125 — Total $ 594 $ 6 $ 319 $ 2 Total Impaired Finance Receivables North America $ 74 $ 1 $ 63 $ 1 Europe 55 1 53 1 Asia/Pacific 34 — 60 1 Mining 109 2 130 3 Latin America 108 1 174 1 Caterpillar Power Finance 545 4 382 3 Total $ 925 $ 9 $ 862 $ 10 (Millions of dollars) Six Months Ended Six Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 18 $ 1 $ 11 $ — Europe 23 — 48 1 Asia/Pacific 31 1 18 1 Mining 78 2 129 4 Latin America 44 1 70 1 Caterpillar Power Finance 178 3 258 6 Total $ 372 $ 8 $ 534 $ 13 Impaired Finance Receivables With An Allowance Recorded North America $ 53 $ 1 $ 56 $ 1 Europe 32 1 6 — Asia/Pacific 6 — 38 1 Mining 36 1 — — Latin America 76 2 101 2 Caterpillar Power Finance 355 4 96 1 Total $ 558 $ 9 $ 297 $ 5 Total Impaired Finance Receivables North America $ 71 $ 2 $ 67 $ 1 Europe 55 1 54 1 Asia/Pacific 37 1 56 2 Mining 114 3 129 4 Latin America 120 3 171 3 Caterpillar Power Finance 533 7 354 7 Total $ 930 $ 17 $ 831 $ 18 Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. As of June 30, 2018 , there were $77 million in finance receivables on non-accrual status for the Dealer portfolio segment, all of which was in Latin America. As of December 31, 2017 , there were no finance receivables on non-accrual status for the Dealer portfolio segment. The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) June 30, December 31, North America $ 42 $ 38 Europe 69 37 Asia/Pacific 6 10 Mining 13 63 Latin America 142 192 Caterpillar Power Finance 357 343 Total $ 629 $ 683 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 June 30, 2018 and December 31, 2017 , there were no additional funds committed to lend to a borrower whose terms have been modified in a TDR. There were no finance receivables modified as TDRs during the three and six months ended June 30, 2018 and 2017 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 17 $ 7 $ 7 17 $ 8 $ 7 Europe — — — — — — Asia/Pacific — — — 1 — — Mining — — — — — — Latin America — — — 7 3 3 Caterpillar Power Finance (1) 2 50 17 48 243 237 Total 19 $ 57 $ 24 73 $ 254 $ 247 Six Months Ended Six Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 30 $ 13 $ 13 26 $ 9 $ 8 Europe — — — 1 — — Asia/Pacific — — — 6 39 30 Mining 1 29 29 2 57 56 Latin America 1 3 3 14 5 5 Caterpillar Power Finance 5 53 20 54 268 261 Total 37 $ 98 $ 65 103 $ 378 $ 360 (1) In Caterpillar Power Finance, during the three months ended June 30, 2017, 42 contracts with a pre-TDR recorded investment of $175 million and a post-TDR recorded investment of $175 million were related to three customers. During the three and six months ended June 30, 2017, there were 240 contracts, primarily related to two customers, with a recorded investment of $16 million with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date in the Customer portfolio segment, all of which were in the Latin America finance receivable class.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	6 Months Ended
	Jun. 30, 2018
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 and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. 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 June 30, 2018 , $3 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statements of Financial Position), related to our floating-to-fixed interest rate contracts, are expected to be reclassified to Interest expense over the next twelve months. The actual amount recorded in Interest expense will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating interest rate contracts that resulted in deferred gains at the time of liquidation. The deferred gains associated with these interest rate contracts are included in Long-term debt in the Consolidated Statements of Financial Position and are being amortized to Interest expense over the remaining term of the previously designated hedged item. The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of Financial Position Location June 30, December 31, Designated derivatives Interest rate contracts Other assets $ 6 $ 3 Interest rate contracts Accrued expenses (3 ) (2 ) Cross currency contracts Other assets 46 7 Cross currency contracts Accrued expenses (26 ) (57 ) $ 23 $ (49 ) Undesignated derivatives Foreign exchange contracts Other assets $ 26 $ 12 Foreign exchange contracts Accrued expenses (10 ) (9 ) Cross currency contracts Other assets 5 — $ 21 $ 3 The total notional amount of our derivative instruments was $6.56 billion and $3.69 billion as of June 30, 2018 and December 31, 2017 , respectively. The notional amounts of derivative financial instruments do not represent amounts exchanged by the parties. The amounts exchanged by the parties are calculated by reference to the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates and interest rates. The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Fair Value Hedges (Millions of dollars) Three Months Ended Three Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ — $ — $ — $ — Six Months Ended Six Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (2 ) $ 2 $ (1 ) $ 1 Cash Flow Hedges (Millions of dollars) Three Months Ended June 30, 2018 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 $ 5 Interest expense $ — $ — Cross currency contracts 123 Other income (expense) 119 — Interest expense 5 — $ 128 $ 124 $ — Three Months Ended June 30, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 2 $ — Cross currency contracts (23 ) Other income (expense) (27 ) — $ (23 ) $ (25 ) $ — Six Months Ended June 30, 2018 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 $ 5 Interest expense $ 1 $ — Cross currency contracts 90 Other income (expense) 90 — Interest expense 8 — $ 95 $ 99 $ — Six Months Ended June 30, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 3 $ — Cross currency contracts (41 ) Other income (expense) (49 ) — $ (41 ) $ (46 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended June 30, Classification 2018 2017 Foreign exchange contracts Other income (expense) $ 18 $ 15 Cross currency contracts Other income (expense) 5 2 $ 23 $ 17 Six Months Ended June 30, Classification 2018 2017 Foreign exchange contracts Other income (expense) $ 11 $ 11 Cross currency contracts Other income (expense) 5 (1 ) $ 16 $ 10 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 June 30, 2018 and December 31, 2017 , no cash collateral was received or pledged under the master netting agreements. The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) June 30, December 31, Derivative Assets Gross Amount of Recognized Assets $ 83 $ 22 Gross Amounts Offset — — Net Amount of Assets (1) 83 22 Gross Amounts Not Offset (13 ) (10 ) Net Amount $ 70 $ 12 Derivative Liabilities Gross Amount of Recognized Liabilities $ (39 ) $ (68 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (39 ) (68 ) Gross Amounts Not Offset 13 10 Net Amount $ (26 ) $ (58 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	6 Months Ended
	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income/(Loss)	Accumulated Other Comprehensive Income/(Loss) Comprehensive income/(loss) and its components are presented in the Consolidated Statements of Comprehensive Income. Changes in Accumulated other comprehensive income/(loss), net of tax, included in the Consolidated Statements of Changes in Shareholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Available-for- sale securities Total Three Months Ended June 30, 2017 Balance at March 31, 2017 $ (914 ) $ 1 $ — $ (913 ) Other comprehensive income/(loss) before reclassifications 158 (15 ) 1 144 Amounts reclassified from accumulated other comprehensive (income)/loss — 16 — 16 Other comprehensive income/(loss) 158 1 1 160 Balance at June 30, 2017 $ (756 ) $ 2 $ 1 $ (753 ) Three Months Ended June 30, 2018 Balance at March 31, 2018 $ (522 ) $ (11 ) $ — $ (533 ) Other comprehensive income/(loss) before reclassifications (254 ) 99 — (155 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (96 ) — (96 ) Other comprehensive income/(loss) (254 ) 3 — (251 ) Balance at June 30, 2018 $ (776 ) $ (8 ) $ — $ (784 ) Six Months Ended June 30, 2017 Balance at December 31, 2016 $ (994 ) $ (1 ) $ — $ (995 ) Other comprehensive income/(loss) before reclassifications 238 (27 ) 1 212 Amounts reclassified from accumulated other comprehensive (income)/loss — 30 — 30 Other comprehensive income/(loss) 238 3 1 242 Balance at June 30, 2017 $ (756 ) $ 2 $ 1 $ (753 ) Six Months Ended June 30, 2018 Balance at December 31, 2017 $ (587 ) $ (5 ) $ — $ (592 ) Other comprehensive income/(loss) before reclassifications (189 ) 73 — (116 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (76 ) — (76 ) Other comprehensive income/(loss) (189 ) (3 ) — (192 ) Balance at June 30, 2018 $ (776 ) $ (8 ) $ — $ (784 ) The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Six Months Ended Derivative financial instruments Classification of income (expense) 2018 2017 2018 2017 Cross currency contracts Other income (expense) $ 119 $ (27 ) $ 90 $ (49 ) Cross currency contracts Interest expense 5 — 8 — Interest rate contracts Interest expense — 2 1 3 Reclassifications before tax 124 (25 ) 99 (46 ) Tax (provision) benefit (28 ) 9 (23 ) 16 Total reclassifications from Accumulated other comprehensive income/(loss) $ 96 $ (16 ) $ 76 $ (30 )

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information A. Basis for Segment Information We report information internally for operating segments based on management responsibility. Our operating segments offer financing to customers and dealers for the purchase and lease of Caterpillar and other equipment, as well as financing for Caterpillar sales to dealers. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans within each of the respective segments. B. Description of Segments We have six 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, the Middle East and the Commonwealth of Independent States. • Asia/Pacific - Includes our operations in Australia, New Zealand, China, Japan and Southeast Asia. • Latin America - Includes our operations in Mexico and Central and South American countries. • Caterpillar Power Finance - Provides financing worldwide for marine vessels with Caterpillar engines and for Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. • Mining - Serves large mining customers worldwide and provides project financing in various countries. To align with the review of operating results by the Chief Executive Officer, our segment reporting was updated effective February 1, 2018. Prior year data has been revised to conform to the current period segment presentation. C. Segment Measurement and Reconciliations Cash, debt and other expenses are allocated to our segments based on their respective portfolios. The related Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt. The performance of each segment is assessed based on a consistent leverage ratio. The Provision for credit losses is based on each segment's respective finance receivable portfolio. Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures. Reconciling items are created based on accounting differences between segment reporting and consolidated external reporting. For the reconciliation of profit before income taxes, we have grouped the reconciling items as follows: • Unallocated - This item is related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the special purpose corporation (see Note 7 for additional information) and other miscellaneous items. • Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting. • Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows: ◦ Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities. ◦ The impact of differences between the actual leverage and the segment leverage ratios. ◦ Interest expense includes realized forward points on foreign currency forward contracts. ◦ The net gain or loss from interest rate derivatives. ◦ The profit attributable to noncontrolling interests is considered a component of segment profit. Supplemental segment data and reconciliations to consolidated external reporting for the three months ended June 30 was as follows: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at June 30, 2018 Capital expenditures North America $ 378 $ 105 $ 91 $ 144 $ 8 $ 15,650 $ 456 Europe 71 5 13 19 13 4,390 22 Asia/Pacific 95 44 30 4 (1 ) 4,714 3 Latin America 63 (20 ) 25 8 36 3,070 19 Caterpillar Power Finance 31 (36 ) 15 — 46 2,606 — Mining 70 11 15 33 2 2,196 31 Total Segments 708 109 189 208 104 32,626 531 Unallocated 23 (65 ) 62 1 — 1,855 2 Timing (8 ) 9 — — — 44 — Methodology — 47 (61 ) — — (213 ) — Inter-segment Eliminations (1) — — — — — (223 ) — Total $ 723 $ 100 $ 190 $ 209 $ 104 $ 34,089 $ 533 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 $ 331 $ 90 $ 74 $ 129 $ 7 $ 14,790 $ 353 Europe 67 22 9 21 (3 ) 4,332 28 Asia/Pacific 66 22 22 7 (2 ) 4,214 1 Latin America 75 4 31 10 14 3,407 9 Caterpillar Power Finance 38 7 10 1 13 2,746 — Mining 72 30 13 34 (9 ) 2,399 45 Total Segments 649 175 159 202 20 31,888 436 Unallocated 34 (44 ) 47 — — 1,719 3 Timing (7 ) (1 ) — — (2 ) 53 — Methodology — 34 (38 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 676 $ 164 $ 168 $ 202 $ 18 $ 33,160 $ 439 (1) Elimination is primarily related to intercompany loans. Supplemental segment data and reconciliations to consolidated external reporting for the six months ended June 30 was as follows: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at June 30, 2018 Capital expenditures North America $ 739 $ 200 $ 173 $ 279 $ 25 $ 15,650 $ 666 Europe 139 12 23 39 24 4,390 36 Asia/Pacific 177 84 55 10 (5 ) 4,714 7 Latin America 132 (16 ) 54 15 48 3,070 27 Caterpillar Power Finance 65 (39 ) 27 1 64 2,606 — Mining 132 16 30 63 8 2,196 64 Total Segments 1,384 257 362 407 164 32,626 800 Unallocated 45 (132 ) 120 1 — 1,855 94 Timing (16 ) 6 — — 7 44 — Methodology — 93 (118 ) — — (213 ) — Inter-segment Eliminations (1) — — — — — (223 ) — Total $ 1,413 $ 224 $ 364 $ 408 $ 171 $ 34,089 $ 894 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 $ 651 $ 172 $ 147 $ 258 $ 14 $ 14,790 $ 535 Europe 132 42 18 41 (2 ) 4,332 46 Asia/Pacific 129 48 42 14 (6 ) 4,214 3 Latin America 155 10 62 21 29 3,407 42 Caterpillar Power Finance 79 36 21 2 7 2,746 — Mining 142 45 25 71 (9 ) 2,399 80 Total Segments 1,288 353 315 407 33 31,888 706 Unallocated 65 (81 ) 89 — — 1,719 4 Timing (15 ) (7 ) — — 1 53 — Methodology — 66 (74 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 1,338 $ 331 $ 330 $ 407 $ 34 $ 33,160 $ 710 (1) Elimination is primarily related to intercompany loans.

Guarantees

Guarantees	6 Months Ended
	Jun. 30, 2018
Guarantees [Abstract]
Guarantees	Guarantees We provide loan guarantees to third-party lenders for financing associated with machinery purchased by customers. These guarantees have varying terms and are secured by the machinery being financed. We also provide residual value guarantees to third-party lenders associated with machinery leased to customers. These guarantees have varying terms. In addition, we participate in standby letters of credit issued to third parties on behalf of our customers. These standby letters of credit have varying terms and beneficiaries and are secured by customer assets. No significant loss has been experienced or is anticipated under any of these guarantees. At June 30, 2018 and December 31, 2017 , the related recorded liability was less than $1 million . The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was $97 million and $91 million at June 30, 2018 and December 31, 2017 , 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 June 30, 2018 and December 31, 2017 , the SPC’s assets of $1.08 billion and $1.11 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 $1.08 billion and $1.11 billion , respectively, were primarily comprised of commercial paper, which is included in Short-term borrowings in the Consolidated Statements of Financial Position. The assets of the SPC are not available to pay our creditors. We may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
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 valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or us) will not be fulfilled. For financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (Level 2 and 3), our fair value calculations have been adjusted accordingly. Derivative financial instruments The fair value of interest rate contracts is primarily based on standard industry accepted models that utilize the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency forward and cross currency contracts is based on a standard industry accepted valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate. Derivative financial instruments are measured on a recurring basis at fair value and are classified as Level 2 measurements. We had derivative financial instruments in a net asset position included in our Consolidated Statements of Financial Position of $44 million as of June 30, 2018 , and in a net liability position of $46 million as of December 31, 2017 . 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 $320 million and $341 million as of June 30, 2018 and December 31, 2017 , 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) June 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 751 $ 751 $ 708 $ 708 1 Restricted cash and cash equivalents (2) $ 3 $ 3 $ 24 $ 24 1 Finance receivables, net (excluding finance leases (1) ) $ 20,320 $ 20,255 $ 20,063 $ 20,019 3 Note 3 Interest rate contracts: In a receivable position $ 6 $ 6 $ 3 $ 3 2 Note 4 In a payable position $ (3 ) $ (3 ) $ (2 ) $ (2 ) 2 Note 4 Cross currency contracts: In a receivable position $ 51 $ 51 $ 7 $ 7 2 Note 4 In a payable position $ (26 ) $ (26 ) $ (57 ) $ (57 ) 2 Note 4 Foreign exchange contracts: In a receivable position $ 26 $ 26 $ 12 $ 12 2 Note 4 In a payable position $ (10 ) $ (10 ) $ (9 ) $ (9 ) 2 Note 4 Short-term borrowings $ (6,185 ) $ (6,185 ) $ (4,836 ) $ (4,836 ) 1 Long-term debt $ (21,958 ) $ (21,822 ) $ (22,106 ) $ (22,230 ) 2 Guarantees $ — $ — $ — $ — 3 Note 7 (1) As of June 30, 2018 and December 31, 2017 , represents finance leases with a net carrying value of $7.42 billion and $7.06 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies We are involved in unresolved legal actions that arise in the normal course of business. Although it is not possible to predict with certainty the outcome of our unresolved legal actions, we believe that these unresolved legal actions will neither individually nor in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes reflects an estimated annual tax rate of 24 percent in the second quarter of 2018 , compared with 30 percent in the second quarter of 2017 . The decrease in the estimated annual tax rate is primarily due to the reduction in the U.S. corporate tax rate beginning January 1, 2018, along with changes in the geographic mix of profits.

Finance Receivables (Tables)

Finance Receivables (Tables)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Summary of finance receivables included in the Consolidated Statements of Financial Position	A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) June 30, December 31, Finance leases and installment sale contracts – Retail $ 15,340 $ 14,647 Retail notes receivable 8,736 9,417 Wholesale notes receivable 4,874 4,161 Finance leases and installment sale contracts – Wholesale 125 119 29,075 28,344 Less: Unearned income (920 ) (853 ) Recorded investment in finance receivables 28,155 27,491 Less: Allowance for credit losses (416 ) (365 ) Total finance receivables, net (1) $ 27,739 $ 27,126 (1) Includes $240 million of finance receivables classified as held for sale as of June 30, 2018 .
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) June 30, 2018 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 353 $ 9 $ 3 $ 365 Receivables written off (130 ) — — (130 ) Recoveries on receivables previously written off 20 — — 20 Provision for credit losses 170 (1 ) 1 170 Adjustment due to sale of receivables (3 ) — — (3 ) Foreign currency translation adjustment (6 ) — — (6 ) Balance at end of period $ 404 $ 8 $ 4 $ 416 Individually evaluated for impairment $ 205 $ — $ — $ 205 Collectively evaluated for impairment 199 8 4 211 Ending Balance $ 404 $ 8 $ 4 $ 416 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 828 $ — $ — $ 828 Collectively evaluated for impairment 18,922 4,299 4,106 27,327 Ending Balance $ 19,750 $ 4,299 $ 4,106 $ 28,155 (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
Aging related to finance receivables	The tables below summarize our recorded investment in finance receivables by aging category. (Millions of dollars) June 30, 2018 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 $ 72 $ 16 $ 43 $ 131 $ 8,138 $ 8,269 $ 7 Europe 31 12 106 149 2,659 2,808 42 Asia/Pacific 31 12 8 51 2,920 2,971 3 Mining 2 — 10 12 1,631 1,643 — Latin America 42 17 102 161 1,418 1,579 — Caterpillar Power Finance 37 61 250 348 2,132 2,480 30 Dealer North America — — — — 2,374 2,374 — Europe — — — — 546 546 — Asia/Pacific — — — — 519 519 — Mining — — — — 3 3 — Latin America — 1 77 78 777 855 — Caterpillar Power Finance — — — — 2 2 — Caterpillar Purchased Receivables (1) North America 15 6 15 36 2,608 2,644 Europe 1 — 1 2 396 398 Asia/Pacific — 2 3 5 739 744 Mining — — — — — — Latin America — — — — 311 311 Caterpillar Power Finance — — — — 9 9 Total $ 231 $ 127 $ 615 $ 973 $ 27,182 $ 28,155 $ 82 (1) Caterpillar Purchased Receivables are non-interest bearing trade receivables purchased at a discount. (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 (1) North America 24 5 2 31 2,010 2,041 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 $ 36 (1) Caterpillar Purchased Receivables are non-interest bearing trade receivables purchased at a discount.
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 June 30, 2018 As of December 31, 2017 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 20 $ 20 $ — $ 19 $ 19 $ — Europe 6 6 — 45 45 — Asia/Pacific 30 30 — 34 33 — Mining 38 38 — 121 121 — Latin America 40 40 — 45 45 — Caterpillar Power Finance 139 159 — 160 172 — Total $ 273 $ 293 $ — $ 424 $ 435 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 49 $ 47 $ 23 $ 44 $ 43 $ 17 Europe 48 47 24 9 8 5 Asia/Pacific 3 3 1 8 8 2 Mining 62 62 21 — — — Latin America 50 50 37 95 106 42 Caterpillar Power Finance 343 345 99 362 365 83 Total $ 555 $ 554 $ 205 $ 518 $ 530 $ 149 Total Impaired Finance Receivables North America $ 69 $ 67 $ 23 $ 63 $ 62 $ 17 Europe 54 53 24 54 53 5 Asia/Pacific 33 33 1 42 41 2 Mining 100 100 21 121 121 — Latin America 90 90 37 140 151 42 Caterpillar Power Finance 482 504 99 522 537 83 Total $ 828 $ 847 $ 205 $ 942 $ 965 $ 149 (Millions of dollars) Three Months Ended Three Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 18 $ 1 $ 11 $ — Europe 7 — 48 1 Asia/Pacific 29 — 30 1 Mining 45 1 130 3 Latin America 43 — 67 — Caterpillar Power Finance 189 1 257 3 Total $ 331 $ 3 $ 543 $ 8 Impaired Finance Receivables With An Allowance Recorded North America $ 56 $ — $ 52 $ 1 Europe 48 1 5 — Asia/Pacific 5 — 30 — Mining 64 1 — — Latin America 65 1 107 1 Caterpillar Power Finance 356 3 125 — Total $ 594 $ 6 $ 319 $ 2 Total Impaired Finance Receivables North America $ 74 $ 1 $ 63 $ 1 Europe 55 1 53 1 Asia/Pacific 34 — 60 1 Mining 109 2 130 3 Latin America 108 1 174 1 Caterpillar Power Finance 545 4 382 3 Total $ 925 $ 9 $ 862 $ 10 (Millions of dollars) Six Months Ended Six Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 18 $ 1 $ 11 $ — Europe 23 — 48 1 Asia/Pacific 31 1 18 1 Mining 78 2 129 4 Latin America 44 1 70 1 Caterpillar Power Finance 178 3 258 6 Total $ 372 $ 8 $ 534 $ 13 Impaired Finance Receivables With An Allowance Recorded North America $ 53 $ 1 $ 56 $ 1 Europe 32 1 6 — Asia/Pacific 6 — 38 1 Mining 36 1 — — Latin America 76 2 101 2 Caterpillar Power Finance 355 4 96 1 Total $ 558 $ 9 $ 297 $ 5 Total Impaired Finance Receivables North America $ 71 $ 2 $ 67 $ 1 Europe 55 1 54 1 Asia/Pacific 37 1 56 2 Mining 114 3 129 4 Latin America 120 3 171 3 Caterpillar Power Finance 533 7 354 7 Total $ 930 $ 17 $ 831 $ 18
Recorded investment in customer finance receivables on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) June 30, December 31, North America $ 42 $ 38 Europe 69 37 Asia/Pacific 6 10 Mining 13 63 Latin America 142 192 Caterpillar Power Finance 357 343 Total $ 629 $ 683
Finance receivables modified as TDRs	Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 17 $ 7 $ 7 17 $ 8 $ 7 Europe — — — — — — Asia/Pacific — — — 1 — — Mining — — — — — — Latin America — — — 7 3 3 Caterpillar Power Finance (1) 2 50 17 48 243 237 Total 19 $ 57 $ 24 73 $ 254 $ 247 Six Months Ended Six Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 30 $ 13 $ 13 26 $ 9 $ 8 Europe — — — 1 — — Asia/Pacific — — — 6 39 30 Mining 1 29 29 2 57 56 Latin America 1 3 3 14 5 5 Caterpillar Power Finance 5 53 20 54 268 261 Total 37 $ 98 $ 65 103 $ 378 $ 360 (1) In Caterpillar Power Finance, during the three months ended June 30, 2017, 42 contracts with a pre-TDR recorded investment of $175 million and a post-TDR recorded investment of $175 million were related to three customers. During the three and six months ended June 30, 2017, there were 240 contracts, primarily related to two customers, with a recorded investment of $16 million with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date in the Customer portfolio segment, all of which were in the Latin America finance receivable class.

Derivative Financial Instrume21

Derivative Financial Instruments and Risk Management (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position	The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of Financial Position Location June 30, December 31, Designated derivatives Interest rate contracts Other assets $ 6 $ 3 Interest rate contracts Accrued expenses (3 ) (2 ) Cross currency contracts Other assets 46 7 Cross currency contracts Accrued expenses (26 ) (57 ) $ 23 $ (49 ) Undesignated derivatives Foreign exchange contracts Other assets $ 26 $ 12 Foreign exchange contracts Accrued expenses (10 ) (9 ) Cross currency contracts Other assets 5 — $ 21 $ 3
Schedule of effect of derivatives designated as fair value hedging instruments in the Consolidated Statements of Profit	The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Fair Value Hedges (Millions of dollars) Three Months Ended Three Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ — $ — $ — $ — Six Months Ended Six Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (2 ) $ 2 $ (1 ) $ 1
Schedule of effect of derivatives designated as cash flow hedging instruments in the Consolidated Statements of Profit	Cash Flow Hedges (Millions of dollars) Three Months Ended June 30, 2018 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 $ 5 Interest expense $ — $ — Cross currency contracts 123 Other income (expense) 119 — Interest expense 5 — $ 128 $ 124 $ — Three Months Ended June 30, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 2 $ — Cross currency contracts (23 ) Other income (expense) (27 ) — $ (23 ) $ (25 ) $ — Six Months Ended June 30, 2018 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 $ 5 Interest expense $ 1 $ — Cross currency contracts 90 Other income (expense) 90 — Interest expense 8 — $ 95 $ 99 $ — Six Months Ended June 30, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 3 $ — Cross currency contracts (41 ) Other income (expense) (49 ) — $ (41 ) $ (46 ) $ —
Schedule of effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit	The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended June 30, Classification 2018 2017 Foreign exchange contracts Other income (expense) $ 18 $ 15 Cross currency contracts Other income (expense) 5 2 $ 23 $ 17 Six Months Ended June 30, Classification 2018 2017 Foreign exchange contracts Other income (expense) $ 11 $ 11 Cross currency contracts Other income (expense) 5 (1 ) $ 16 $ 10
Schedule of offsetting of derivative assets and liabilities	The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) June 30, December 31, Derivative Assets Gross Amount of Recognized Assets $ 83 $ 22 Gross Amounts Offset — — Net Amount of Assets (1) 83 22 Gross Amounts Not Offset (13 ) (10 ) Net Amount $ 70 $ 12 Derivative Liabilities Gross Amount of Recognized Liabilities $ (39 ) $ (68 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (39 ) (68 ) Gross Amounts Not Offset 13 10 Net Amount $ (26 ) $ (58 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi22

Accumulated Other Comprehensive Income/(Loss) (Tables)	6 Months Ended
	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated other comprehensive income/(loss)	Changes in Accumulated other comprehensive income/(loss), net of tax, included in the Consolidated Statements of Changes in Shareholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Available-for- sale securities Total Three Months Ended June 30, 2017 Balance at March 31, 2017 $ (914 ) $ 1 $ — $ (913 ) Other comprehensive income/(loss) before reclassifications 158 (15 ) 1 144 Amounts reclassified from accumulated other comprehensive (income)/loss — 16 — 16 Other comprehensive income/(loss) 158 1 1 160 Balance at June 30, 2017 $ (756 ) $ 2 $ 1 $ (753 ) Three Months Ended June 30, 2018 Balance at March 31, 2018 $ (522 ) $ (11 ) $ — $ (533 ) Other comprehensive income/(loss) before reclassifications (254 ) 99 — (155 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (96 ) — (96 ) Other comprehensive income/(loss) (254 ) 3 — (251 ) Balance at June 30, 2018 $ (776 ) $ (8 ) $ — $ (784 ) Six Months Ended June 30, 2017 Balance at December 31, 2016 $ (994 ) $ (1 ) $ — $ (995 ) Other comprehensive income/(loss) before reclassifications 238 (27 ) 1 212 Amounts reclassified from accumulated other comprehensive (income)/loss — 30 — 30 Other comprehensive income/(loss) 238 3 1 242 Balance at June 30, 2017 $ (756 ) $ 2 $ 1 $ (753 ) Six Months Ended June 30, 2018 Balance at December 31, 2017 $ (587 ) $ (5 ) $ — $ (592 ) Other comprehensive income/(loss) before reclassifications (189 ) 73 — (116 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (76 ) — (76 ) Other comprehensive income/(loss) (189 ) (3 ) — (192 ) Balance at June 30, 2018 $ (776 ) $ (8 ) $ — $ (784 )
Reclassifications out of Accumulated other comprehensive income/(loss)	The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Six Months Ended Derivative financial instruments Classification of income (expense) 2018 2017 2018 2017 Cross currency contracts Other income (expense) $ 119 $ (27 ) $ 90 $ (49 ) Cross currency contracts Interest expense 5 — 8 — Interest rate contracts Interest expense — 2 1 3 Reclassifications before tax 124 (25 ) 99 (46 ) Tax (provision) benefit (28 ) 9 (23 ) 16 Total reclassifications from Accumulated other comprehensive income/(loss) $ 96 $ (16 ) $ 76 $ (30 )

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the three months ended June 30 was as follows: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at June 30, 2018 Capital expenditures North America $ 378 $ 105 $ 91 $ 144 $ 8 $ 15,650 $ 456 Europe 71 5 13 19 13 4,390 22 Asia/Pacific 95 44 30 4 (1 ) 4,714 3 Latin America 63 (20 ) 25 8 36 3,070 19 Caterpillar Power Finance 31 (36 ) 15 — 46 2,606 — Mining 70 11 15 33 2 2,196 31 Total Segments 708 109 189 208 104 32,626 531 Unallocated 23 (65 ) 62 1 — 1,855 2 Timing (8 ) 9 — — — 44 — Methodology — 47 (61 ) — — (213 ) — Inter-segment Eliminations (1) — — — — — (223 ) — Total $ 723 $ 100 $ 190 $ 209 $ 104 $ 34,089 $ 533 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 $ 331 $ 90 $ 74 $ 129 $ 7 $ 14,790 $ 353 Europe 67 22 9 21 (3 ) 4,332 28 Asia/Pacific 66 22 22 7 (2 ) 4,214 1 Latin America 75 4 31 10 14 3,407 9 Caterpillar Power Finance 38 7 10 1 13 2,746 — Mining 72 30 13 34 (9 ) 2,399 45 Total Segments 649 175 159 202 20 31,888 436 Unallocated 34 (44 ) 47 — — 1,719 3 Timing (7 ) (1 ) — — (2 ) 53 — Methodology — 34 (38 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 676 $ 164 $ 168 $ 202 $ 18 $ 33,160 $ 439 (1) Elimination is primarily related to intercompany loans. Supplemental segment data and reconciliations to consolidated external reporting for the six months ended June 30 was as follows: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at June 30, 2018 Capital expenditures North America $ 739 $ 200 $ 173 $ 279 $ 25 $ 15,650 $ 666 Europe 139 12 23 39 24 4,390 36 Asia/Pacific 177 84 55 10 (5 ) 4,714 7 Latin America 132 (16 ) 54 15 48 3,070 27 Caterpillar Power Finance 65 (39 ) 27 1 64 2,606 — Mining 132 16 30 63 8 2,196 64 Total Segments 1,384 257 362 407 164 32,626 800 Unallocated 45 (132 ) 120 1 — 1,855 94 Timing (16 ) 6 — — 7 44 — Methodology — 93 (118 ) — — (213 ) — Inter-segment Eliminations (1) — — — — — (223 ) — Total $ 1,413 $ 224 $ 364 $ 408 $ 171 $ 34,089 $ 894 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 $ 651 $ 172 $ 147 $ 258 $ 14 $ 14,790 $ 535 Europe 132 42 18 41 (2 ) 4,332 46 Asia/Pacific 129 48 42 14 (6 ) 4,214 3 Latin America 155 10 62 21 29 3,407 42 Caterpillar Power Finance 79 36 21 2 7 2,746 — Mining 142 45 25 71 (9 ) 2,399 80 Total Segments 1,288 353 315 407 33 31,888 706 Unallocated 65 (81 ) 89 — — 1,719 4 Timing (15 ) (7 ) — — 1 53 — Methodology — 66 (74 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 1,338 $ 331 $ 330 $ 407 $ 34 $ 33,160 $ 710 (1) Elimination is primarily related to intercompany loans.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
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) June 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 751 $ 751 $ 708 $ 708 1 Restricted cash and cash equivalents (2) $ 3 $ 3 $ 24 $ 24 1 Finance receivables, net (excluding finance leases (1) ) $ 20,320 $ 20,255 $ 20,063 $ 20,019 3 Note 3 Interest rate contracts: In a receivable position $ 6 $ 6 $ 3 $ 3 2 Note 4 In a payable position $ (3 ) $ (3 ) $ (2 ) $ (2 ) 2 Note 4 Cross currency contracts: In a receivable position $ 51 $ 51 $ 7 $ 7 2 Note 4 In a payable position $ (26 ) $ (26 ) $ (57 ) $ (57 ) 2 Note 4 Foreign exchange contracts: In a receivable position $ 26 $ 26 $ 12 $ 12 2 Note 4 In a payable position $ (10 ) $ (10 ) $ (9 ) $ (9 ) 2 Note 4 Short-term borrowings $ (6,185 ) $ (6,185 ) $ (4,836 ) $ (4,836 ) 1 Long-term debt $ (21,958 ) $ (21,822 ) $ (22,106 ) $ (22,230 ) 2 Guarantees $ — $ — $ — $ — 3 Note 7 (1) As of June 30, 2018 and December 31, 2017 , represents finance leases with a net carrying value of $7.42 billion and $7.06 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail	$ 15,340	$ 14,647
Retail notes receivable	8,736	9,417
Wholesale notes receivable	4,874	4,161
Finance leases and installment sale contracts - Wholesale	125	119
Total gross finance receivables	29,075	28,344
Less: Unearned income	(920)	(853)
Recorded Investment in Finance Receivables	28,155	27,491
Less: Allowance for credit losses	(416)	(365)	$ (343)
Total finance receivables, net	27,739	$ 27,126
Finance receivables held-for-sale
Accounts, Notes, Loans and Financing Receivable
Total finance receivables, net	$ 240

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	$ 365	$ 343	$ 416	$ 365
Allowance for credit losses as a percent of our recorded investment in finance receivables			1.48%	1.33%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	365	343
Receivables written off	(130)	(157)
Recoveries on receivables previously written off	20	43
Provision for credit losses	170	129
Adjustment due to sale of receivables	(3)	(1)
Foreign currency translation adjustment	(6)	8
Balance at end of period	416	365
Allowance for Credit Losses
Individually evaluated for impairment			$ 205	$ 149
Collectively evaluated for impairment			211	216
Allowance, Ending Balance	365	343	416	365
Recorded Investment in Finance Receivables
Individually evaluated for impairment			828	942
Collectively evaluated for impairment			27,327	26,549
Recorded Investment in Finance Receivables, Ending Balance			28,155	27,491
Customer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	353	331	404	353
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	353	331
Receivables written off	(130)	(157)
Recoveries on receivables previously written off	20	43
Provision for credit losses	170	129
Adjustment due to sale of receivables	(3)	(1)
Foreign currency translation adjustment	(6)	8
Balance at end of period	404	353
Allowance for Credit Losses
Individually evaluated for impairment			205	149
Collectively evaluated for impairment			199	204
Allowance, Ending Balance	353	331	404	353
Recorded Investment in Finance Receivables
Individually evaluated for impairment			828	942
Collectively evaluated for impairment			18,922	18,847
Recorded Investment in Finance Receivables, Ending Balance			19,750	19,789
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	9	10	8	9
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	9	10
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	(1)	(1)
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	8	9
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			8	9
Allowance, Ending Balance	9	10	8	9
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,299	4,241
Recorded Investment in Finance Receivables, Ending Balance			4,299	4,241
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	3	2	4	3
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	3	2
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 period	4	3
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4	3
Allowance, Ending Balance	$ 3	$ 2	4	3
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,106	3,461
Recorded Investment in Finance Receivables, Ending Balance			$ 4,106	$ 3,461

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 973	$ 845
Current	27,182	26,646
Recorded Investment in Finance Receivables	28,155	27,491
91 Plus, Still Accruing	82	36
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	231	195
61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	127	199
91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	615	451
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,750	19,789
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	131	128
Current	8,138	8,040
Recorded Investment in Finance Receivables	8,269	8,168
91 Plus, Still Accruing	7	8
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	72	71
Customer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	16	15
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	43	42
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	149	77
Current	2,659	2,718
Recorded Investment in Finance Receivables	2,808	2,795
91 Plus, Still Accruing	42	13
Customer | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	31	21
Customer | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	12	10
Customer | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	106	46
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	51	39
Current	2,920	2,520
Recorded Investment in Finance Receivables	2,971	2,559
91 Plus, Still Accruing	3	5
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	31	18
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	12	7
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	8	14
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	12	64
Current	1,631	1,751
Recorded Investment in Finance Receivables	1,643	1,815
91 Plus, Still Accruing	0	9
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	2	3
Customer | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	1
Customer | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	10	60
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	161	234
Current	1,418	1,546
Recorded Investment in Finance Receivables	1,579	1,780
91 Plus, Still Accruing	0	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	42	37
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	17	55
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	102	142
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	348	196
Current	2,132	2,476
Recorded Investment in Finance Receivables	2,480	2,672
91 Plus, Still Accruing	30	1
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	37	20
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	61	32
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	250	144
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,299	4,241
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,374	2,394
Recorded Investment in Finance Receivables	2,374	2,394
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	546	417
Recorded Investment in Finance Receivables	546	417
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	519	578
Recorded Investment in Finance Receivables	519	578
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	3	5
Recorded Investment in Finance Receivables	3	5
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	78	72
Current	777	773
Recorded Investment in Finance Receivables	855	845
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	1	72
Dealer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	77	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	4,106	3,461
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	36	31
Current	2,608	2,010
Recorded Investment in Finance Receivables	2,644	2,041
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	15	24
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	6	5
Caterpillar Purchased Receivables | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	15	2
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	2	4
Current	396	344
Recorded Investment in Finance Receivables	398	348
Caterpillar Purchased Receivables | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	1
Caterpillar Purchased Receivables | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	2
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	5	0
Current	739	630
Recorded Investment in Finance Receivables	744	630
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	2	0
Caterpillar Purchased Receivables | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	3	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
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	311	437
Recorded Investment in Finance Receivables	311	437
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	9	5
Recorded Investment in Finance Receivables	9	5
Caterpillar Purchased Receivables | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 0	$ 0

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Receivables [Abstract]
Period after which collection of future income is considered as not probable			120 days
Customer
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	$ 273		$ 273		$ 424
Unpaid Principal Balance With No Allowance Recorded	293		293		435
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	555		555		518
Unpaid Principal Balance With An Allowance Recorded	554		554		530
Related Allowance With An Allowance Recorded	205		205		149
Recorded Investment, Total	828		828		942
Unpaid Principal Balance, Total	847		847		965
Related Allowance, Total	205		205		149
Average Recorded Investment With No Allowance Recorded	331	$ 543	372	$ 534
Interest Income Recognized With No Allowance Recorded	3	8	8	13
Average Recorded Investment With An Allowance Recorded	594	319	558	297
Interest Income Recognized With An Allowance Recorded	6	2	9	5
Average Recorded Investment, Total	925	862	930	831
Interest Income Recognized, Total	9	10	17	18
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	20		20		19
Unpaid Principal Balance With No Allowance Recorded	20		20		19
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	49		49		44
Unpaid Principal Balance With An Allowance Recorded	47		47		43
Related Allowance With An Allowance Recorded	23		23		17
Recorded Investment, Total	69		69		63
Unpaid Principal Balance, Total	67		67		62
Related Allowance, Total	23		23		17
Average Recorded Investment With No Allowance Recorded	18	11	18	11
Interest Income Recognized With No Allowance Recorded	1	0	1	0
Average Recorded Investment With An Allowance Recorded	56	52	53	56
Interest Income Recognized With An Allowance Recorded	0	1	1	1
Average Recorded Investment, Total	74	63	71	67
Interest Income Recognized, Total	1	1	2	1
Customer | Europe
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	6		6		45
Unpaid Principal Balance With No Allowance Recorded	6		6		45
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	48		48		9
Unpaid Principal Balance With An Allowance Recorded	47		47		8
Related Allowance With An Allowance Recorded	24		24		5
Recorded Investment, Total	54		54		54
Unpaid Principal Balance, Total	53		53		53
Related Allowance, Total	24		24		5
Average Recorded Investment With No Allowance Recorded	7	48	23	48
Interest Income Recognized With No Allowance Recorded	0	1	0	1
Average Recorded Investment With An Allowance Recorded	48	5	32	6
Interest Income Recognized With An Allowance Recorded	1	0	1	0
Average Recorded Investment, Total	55	53	55	54
Interest Income Recognized, Total	1	1	1	1
Customer | Asia/Pacific
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	30		30		34
Unpaid Principal Balance With No Allowance Recorded	30		30		33
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	3		3		8
Unpaid Principal Balance With An Allowance Recorded	3		3		8
Related Allowance With An Allowance Recorded	1		1		2
Recorded Investment, Total	33		33		42
Unpaid Principal Balance, Total	33		33		41
Related Allowance, Total	1		1		2
Average Recorded Investment With No Allowance Recorded	29	30	31	18
Interest Income Recognized With No Allowance Recorded	0	1	1	1
Average Recorded Investment With An Allowance Recorded	5	30	6	38
Interest Income Recognized With An Allowance Recorded	0	0	0	1
Average Recorded Investment, Total	34	60	37	56
Interest Income Recognized, Total	0	1	1	2
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	38		38		121
Unpaid Principal Balance With No Allowance Recorded	38		38		121
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	62		62		0
Unpaid Principal Balance With An Allowance Recorded	62		62		0
Related Allowance With An Allowance Recorded	21		21		0
Recorded Investment, Total	100		100		121
Unpaid Principal Balance, Total	100		100		121
Related Allowance, Total	21		21		0
Average Recorded Investment With No Allowance Recorded	45	130	78	129
Interest Income Recognized With No Allowance Recorded	1	3	2	4
Average Recorded Investment With An Allowance Recorded	64	0	36	0
Interest Income Recognized With An Allowance Recorded	1	0	1	0
Average Recorded Investment, Total	109	130	114	129
Interest Income Recognized, Total	2	3	3	4
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	40		40		45
Unpaid Principal Balance With No Allowance Recorded	40		40		45
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	50		50		95
Unpaid Principal Balance With An Allowance Recorded	50		50		106
Related Allowance With An Allowance Recorded	37		37		42
Recorded Investment, Total	90		90		140
Unpaid Principal Balance, Total	90		90		151
Related Allowance, Total	37		37		42
Average Recorded Investment With No Allowance Recorded	43	67	44	70
Interest Income Recognized With No Allowance Recorded	0	0	1	1
Average Recorded Investment With An Allowance Recorded	65	107	76	101
Interest Income Recognized With An Allowance Recorded	1	1	2	2
Average Recorded Investment, Total	108	174	120	171
Interest Income Recognized, Total	1	1	3	3
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	139		139		160
Unpaid Principal Balance With No Allowance Recorded	159		159		172
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	343		343		362
Unpaid Principal Balance With An Allowance Recorded	345		345		365
Related Allowance With An Allowance Recorded	99		99		83
Recorded Investment, Total	482		482		522
Unpaid Principal Balance, Total	504		504		537
Related Allowance, Total	99		99		83
Average Recorded Investment With No Allowance Recorded	189	257	178	258
Interest Income Recognized With No Allowance Recorded	1	3	3	6
Average Recorded Investment With An Allowance Recorded	356	125	355	96
Interest Income Recognized With An Allowance Recorded	3	0	4	1
Average Recorded Investment, Total	545	382	533	354
Interest Income Recognized, Total	4	$ 3	7	$ 7
Dealer
Financing Receivable, Impaired
Recorded Investment, Total	0		0		0
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	$ 0		$ 0		$ 0

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 629	$ 683
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	42	38
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	69	37
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	6	10
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	13	63
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	142	192
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	357	343
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status		$ 0
Dealer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 77

Finance Receivables (Details 6)

Finance Receivables (Details 6) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)contracts	Jun. 30, 2017USD ($)contracts	Jun. 30, 2018USD ($)contracts	Jun. 30, 2017USD ($)contracts	Dec. 31, 2017USD ($)
Financing Receivable, Modifications
Remaining commitments	$ 0		$ 0		$ 0
Finance receivables modified as TDRs
Number of Contracts | contracts	19	73	37	103
Pre-TDR Recorded Investment	$ 57	$ 254	$ 98	$ 378
Post-TDR Recorded Investment	$ 24	$ 247	$ 65	$ 360
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	17	17	30	26
Pre-TDR Recorded Investment	$ 7	$ 8	$ 13	$ 9
Post-TDR Recorded Investment	$ 7	$ 7	$ 13	$ 8
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	1
Pre-TDR Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post-TDR Recorded Investment	$ 0	$ 0	$ 0	$ 0
Customer | Asia/Pacific
Finance receivables modified as TDRs
Number of Contracts | contracts	0	1	0	6
Pre-TDR Recorded Investment	$ 0	$ 0	$ 0	$ 39
Post-TDR Recorded Investment	$ 0	$ 0	$ 0	$ 30
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	1	2
Pre-TDR Recorded Investment	$ 0	$ 0	$ 29	$ 57
Post-TDR Recorded Investment	$ 0	$ 0	$ 29	$ 56
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	0	7	1	14
Pre-TDR Recorded Investment	$ 0	$ 3	$ 3	$ 5
Post-TDR Recorded Investment	$ 0	$ 3	$ 3	$ 5
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	2	48	5	54
Pre-TDR Recorded Investment	$ 50	$ 243	$ 53	$ 268
Post-TDR Recorded Investment	$ 17	$ 237	$ 20	$ 261
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	0
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	0
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers (Two) [Member] | Customer | Latin America
TDRs which had been modified within twelve months of the default date
Number of contracts | contracts		240		240
Post-TDR Recorded Investment		$ 16		$ 16
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers (Three) [Member] | Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts		42
Pre-TDR Recorded Investment		$ 175
Post-TDR Recorded Investment		$ 175

Derivative Financial Instrume31

Derivative Financial Instruments and Risk Management (Details) $ in Millions	Jun. 30, 2018USD ($)
Derivative
Deferred net gains, interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 3

Derivative Financial Instrume32

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value
Asset Fair Value	$ 83	$ 22
Liability Fair Value	(39)	(68)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	23	(49)
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	6	3
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(3)	(2)
Designated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	46	7
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(26)	(57)
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	21	3
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	26	12
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(10)	(9)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	$ 5	$ 0

Derivative Financial Instrume33

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Derivative
Derivative instruments, notional amount	$ 6,560	$ 3,690

Derivative Financial Instrume34

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Designated derivatives | Fair value hedges | Interest rate contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ 0	$ 0	$ (2)	$ (1)
Gains (Losses) on Borrowings	0	0	2	1
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	128	(23)	95	(41)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	124	(25)	99	(46)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Designated derivatives | Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	5	0	5	0
Designated derivatives | Cash flow hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	0	2	1	3
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Designated derivatives | Cash flow hedges | Cross currency contracts
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	123	(23)	90	(41)
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)	5		8
Recognized in Earnings (Ineffective Portion)	0		0
Designated derivatives | Cash flow hedges | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	119	(27)	90	(49)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	23	17	16	10
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	18	15	11	11
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 5	$ 2	$ 5	$ (1)

Derivative Financial Instrume35

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Offsetting Assets and Liabilities [Abstract]
Gross Amount of Recognized Assets	$ 83	$ 22
Gross Amounts Offset	0	0
Net Amount of Assets	83	22
Gross Amounts Not Offset	(13)	(10)
Net Amount	70	12
Gross Amount of Recognized Liabilities	(39)	(68)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(39)	(68)
Gross Amounts Not Offset	13	10
Net Amount	$ (26)	$ (58)

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (533)	$ (913)	$ (592)	$ (995)
Other comprehensive income/(loss) before reclassifications	(155)	144	(116)	212
Amounts reclassified from accumulated other comprehensive (income)/loss	(96)	16	(76)	30
Other comprehensive income/(loss)	(251)	160	(192)	242
Balance at end of period	(784)	(753)	(784)	(753)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(522)	(914)	(587)	(994)
Other comprehensive income/(loss) before reclassifications	(254)	158	(189)	238
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0	0
Other comprehensive income/(loss)	(254)	158	(189)	238
Balance at end of period	(776)	(756)	(776)	(756)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(11)	1	(5)	(1)
Other comprehensive income/(loss) before reclassifications	99	(15)	73	(27)
Amounts reclassified from accumulated other comprehensive (income)/loss	(96)	16	(76)	30
Other comprehensive income/(loss)	3	1	(3)	3
Balance at end of period	(8)	2	(8)	2
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	0	0	0	0
Other comprehensive income/(loss) before reclassifications	0	1	0	1
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0	0
Other comprehensive income/(loss)	0	1	0	1
Balance at end of period	$ 0	$ 1	$ 0	$ 1

Accumulated Other Comprehensi37

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)		$ (5)	$ (2)	$ (12)	$ (6)
Interest		(190)	(168)	(364)	(330)
Reclassifications before tax		100	164	224	331
Tax (provision) benefit		(24)	(49)	(53)	(99)
Total reclassifications from Accumulated other comprehensive income/(loss)	[1]	71	114	162	229
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax		124	(25)	99	(46)
Tax (provision) benefit		(28)	9	(23)	16
Total reclassifications from Accumulated other comprehensive income/(loss)		96	(16)	76	(30)
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)		119	(27)	90	(49)
Interest		5	0	8	0
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest		$ 0	$ 2	$ 1	$ 3
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information
External Revenues	$ 723	$ 676	$ 1,413	$ 1,338
Profit before income taxes	100	164	224	331
Interest Expense	190	168	364	330
Depreciation on equipment leased to others	209	202	408	407
Provision for credit losses	104	18	171	34
Assets	34,089		34,089		$ 33,160
Capital expenditures	533	439	894	710
Operating Segments
Segment Reporting Information
External Revenues	708	649	1,384	1,288
Profit before income taxes	109	175	257	353
Interest Expense	189	159	362	315
Depreciation on equipment leased to others	208	202	407	407
Provision for credit losses	104	20	164	33
Assets	32,626		32,626		31,888
Capital expenditures	531	436	800	706
Unallocated
Segment Reporting Information
External Revenues	23	34	45	65
Profit before income taxes	(65)	(44)	(132)	(81)
Interest Expense	62	47	120	89
Depreciation on equipment leased to others	1	0	1	0
Provision for credit losses	0	0	0	0
Assets	1,855		1,855		1,719
Capital expenditures	2	3	94	4
Timing
Segment Reporting Information
External Revenues	(8)	(7)	(16)	(15)
Profit before income taxes	9	(1)	6	(7)
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	(2)	7	1
Assets	44		44		53
Capital expenditures	0	0	0	0
Methodology
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	47	34	93	66
Interest Expense	(61)	(38)	(118)	(74)
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	(213)		(213)		(256)
Capital expenditures	0	0	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	0	0	0	0
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	(223)		(223)		(244)
Capital expenditures	0	0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	378	331	739	651
Profit before income taxes	105	90	200	172
Interest Expense	91	74	173	147
Depreciation on equipment leased to others	144	129	279	258
Provision for credit losses	8	7	25	14
Assets	15,650		15,650		14,790
Capital expenditures	456	353	666	535
Europe | Operating Segments
Segment Reporting Information
External Revenues	71	67	139	132
Profit before income taxes	5	22	12	42
Interest Expense	13	9	23	18
Depreciation on equipment leased to others	19	21	39	41
Provision for credit losses	13	(3)	24	(2)
Assets	4,390		4,390		4,332
Capital expenditures	22	28	36	46
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	95	66	177	129
Profit before income taxes	44	22	84	48
Interest Expense	30	22	55	42
Depreciation on equipment leased to others	4	7	10	14
Provision for credit losses	(1)	(2)	(5)	(6)
Assets	4,714		4,714		4,214
Capital expenditures	3	1	7	3
Latin America | Operating Segments
Segment Reporting Information
External Revenues	63	75	132	155
Profit before income taxes	(20)	4	(16)	10
Interest Expense	25	31	54	62
Depreciation on equipment leased to others	8	10	15	21
Provision for credit losses	36	14	48	29
Assets	3,070		3,070		3,407
Capital expenditures	19	9	27	42
Caterpillar Power Finance | Operating Segments
Segment Reporting Information
External Revenues	31	38	65	79
Profit before income taxes	(36)	7	(39)	36
Interest Expense	15	10	27	21
Depreciation on equipment leased to others	0	1	1	2
Provision for credit losses	46	13	64	7
Assets	2,606		2,606		2,746
Capital expenditures	0	0	0	0
Mining | Operating Segments
Segment Reporting Information
External Revenues	70	72	132	142
Profit before income taxes	11	30	16	45
Interest Expense	15	13	30	25
Depreciation on equipment leased to others	33	34	63	71
Provision for credit losses	2	(9)	8	(9)
Assets	2,196		2,196		$ 2,399
Capital expenditures	$ 31	$ 45	$ 64	$ 80

Guarantees (Details)

Guarantees (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 97	$ 91
SPC's assets in Consolidated Statements of Financial Position	1,080	1,110
SPC's liabilities in Consolidated Statements of Financial Position	1,080	1,110
Maximum
Guarantor Obligations
Related recorded liability	$ 1	$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Recurring basis | Level 2
Assets
Derivative financial instruments, net asset (liability) position	$ 44	$ (46)

Fair Value Measurements (Deta41

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Fair value of impaired loans	$ 320	$ 341

Fair Value Measurements (Deta42

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Financial Instruments, Financial Assets, Balance Sheet Groupings
Restricted cash and cash equivalents	$ 3	$ 24
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(6,185)	(4,836)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	751	708
Restricted cash and cash equivalents	3	24
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(6,185)	(4,836)
Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest rate contracts, in a receivable position	6	3
Foreign exchange contracts, in a receivable position	26	12
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(3)	(2)
Foreign exchange contracts, in a payable position	(10)	(9)
Long-term debt	(21,822)	(22,230)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,255	20,019
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Guarantees	0	0
Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	751	708
Restricted cash and cash equivalents	3	24
Finance receivables, net (excluding finance leases)	20,320	20,063
Interest rate contracts, in a receivable position	6	3
Foreign exchange contracts, in a receivable position	26	12
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(3)	(2)
Foreign exchange contracts, in a payable position	(10)	(9)
Short-term borrowings	(6,185)	(4,836)
Long-term debt	(21,958)	(22,106)
Guarantees	0	0
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases	7,420	7,060
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	51	7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	(26)	(57)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	51	7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	$ (26)	$ (57)

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Estimated annual tax rate	24.00%	30.00%