Caterpillar Financial Services 10-Q 31 Oct 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 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
Entity Emerging Growth Company	false
Entity Small Business	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Retail finance		$ 330	$ 309	$ 975	$ 924
Operating lease		259	247	760	737
Wholesale finance		108	79	304	222
Other, net		38	38	109	128
Total revenues		735	673	2,148	2,011
Expenses:
Interest		194	169	558	499
Depreciation on equipment leased to others		208	201	616	608
General, operating and administrative		109	113	326	319
Provision for credit losses		47	48	218	82
Other		11	12	28	36
Total expenses		569	543	1,746	1,544
Other income (expense)		(3)	(4)	(15)	(10)
Profit before income taxes		163	126	387	457
Provision for income taxes		32	38	85	137
Profit of consolidated companies		131	88	302	320
Less: Profit attributable to noncontrolling interests		6	2	15	5
Profit	[1]	$ 125	$ 86	$ 287	$ 315
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 131	$ 88	$ 302	$ 320
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	(50)	154	(241)	395
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	42	(14)	115	(41)
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	(42)	11	(118)	41
Available-for-sale securities
Gains (losses) deferred, net of tax (expense)/benefit	0	(1)	0	0
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	0	0	0	0
Total Other comprehensive income (loss), net of tax	(50)	150	(244)	395
Comprehensive income (loss)	81	238	58	715
Less: Comprehensive income (loss) attributable to the noncontrolling interests	0	5	7	11
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 81	$ 233	$ 51	$ 704

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ (3)	$ 30	$ (18)	$ 94
Derivative financial instruments:
Gains (losses) deferred, tax	(14)	8	(36)	22
(Gains) losses reclassified to earnings, tax	14	(7)	37	(23)
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	Sep. 30, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 676	$ 708
Finance receivables, net	27,512	27,126
Notes receivable from Caterpillar	667	559
Equipment on operating leases, less accumulated depreciation	3,594	3,568
Deferred and refundable income taxes	205	174
Other assets	1,183	1,025
Total assets	33,837	33,160
Liabilities and shareholder's equity:
Payable to dealers and others	145	190
Payable to Caterpillar - other	68	85
Accrued expenses	248	274
Income taxes payable	145	158
Payable to Caterpillar - borrowings	1,565	1,638
Short-term borrowings	4,462	4,836
Current maturities of long-term debt	5,801	6,188
Long-term debt	17,450	15,918
Deferred income taxes and other liabilities	631	609
Total liabilities	30,515	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	3,256	2,969
Accumulated other comprehensive income/(loss)	(828)	(592)
Noncontrolling interests	147	140
Total shareholder's equity	3,322	3,264
Total liabilities and shareholder's equity	$ 33,837	$ 33,160

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parentheticals) - $ / shares	Sep. 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	320			315		5
Foreign currency translation, net of tax	395				389	6
Derivative financial instruments, net of tax	0				0
Balance at Sep. 30, 2017	3,700	745	2	3,423	(606)	136
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	302			287		15
Foreign currency translation, net of tax	(241)				(233)	(8)
Derivative financial instruments, net of tax	(3)				(3)
Balance at Sep. 30, 2018	$ 3,322	$ 745	$ 2	$ 3,256	$ (828)	$ 147

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Profit of consolidated companies	$ 302	$ 320
Adjustments for non-cash items:
Depreciation and amortization	626	616
Amortization of receivables purchase discount	(274)	(180)
Provision for credit losses	218	82
Other, net	93	16
Changes in assets and liabilities:
Receivables from others	(11)	69
Other receivables/payables with Caterpillar	(19)	1
Payable to dealers and others	(32)	(31)
Accrued interest payable	22	3
Accrued expenses and other liabilities, net	11	(4)
Income taxes payable	(67)	38
Settlements of designated derivatives	13	(7)
Net cash provided by operating activities	882	923
Cash flows from investing activities:
Expenditures for equipment on operating leases	(1,093)	(1,012)
Capital expenditures - excluding equipment on operating leases	(99)	(6)
Proceeds from disposals of equipment	619	753
Additions to finance receivables	(10,151)	(9,765)
Collections of finance receivables	9,132	10,192
Net changes in Caterpillar purchased receivables	(484)	(161)
Proceeds from sales of receivables	416	98
Net change in variable lending to Caterpillar	(18)	(1,051)
Additions to other notes receivable with Caterpillar	(390)	(53)
Collections on other notes receivable with Caterpillar	300	56
Proceeds from sale of securities	0	4
Settlements of undesignated derivatives	(2)	23
Net cash provided by (used for) investing activities	(1,770)	(922)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	(63)	(105)
Payments on borrowings with Caterpillar	0	(49)
Proceeds from debt issued (original maturities greater than three months)	7,026	6,972
Payments on debt issued (original maturities greater than three months)	(5,636)	(5,718)
Short-term borrowings, net (original maturities three months or less)	(479)	(2,207)
Net cash provided by (used for) financing activities	848	(1,107)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(13)	23
Increase/(decrease) in cash, cash equivalents and restricted cash	(53)	(1,083)
Cash, cash equivalents and restricted cash at beginning of year	732	1,824
Cash, cash equivalents and restricted cash at end of period	$ 679	$ 741

Consolidated Statements of Ca_2

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

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 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 nine months ended September 30, 2018 and 2017 , (b) the consolidated comprehensive income for the three and nine months ended September 30, 2018 and 2017 , (c) the consolidated financial position as of September 30, 2018 and December 31, 2017 , (d) the consolidated changes in shareholder's equity for the nine months ended September 30, 2018 and 2017 and (e) the consolidated cash flows for the nine months ended September 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	9 Months Ended
	Sep. 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. We will 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. The new guidance provides a number of optional practical expedients in transition. We plan to elect the "package of practical expedients", which allows us not to reassess under the new guidance our prior conclusions about lease identification, lease classification and initial direct costs. We do not expect to elect the use-of-hindsight practical expedient. In addition, the new guidance provides practical expedients for an entity’s ongoing accounting that we are still evaluating such as whether or not to separate lease and non-lease components. We plan to elect the short-term lease recognition exemption for all leases that qualify which means we will not recognize right-of-use assets or lease liabilities for these leases. We are currently designing new processes and controls, cataloging and entering our leases into a recently implemented software solution and evaluating our population of leased assets to assess the effect of the new guidance on our financial statements. While we continue to assess the effects of adoption, we believe the most significant effects relate to the recognition of right-of-use assets and lease liabilities on our balance sheet and providing new disclosures about our leasing activities. We also have a team evaluating the impact of the changes to lessor accounting. 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. We will adopt the new guidance effective January 1, 2019. 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. 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	9 Months Ended
	Sep. 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) September 30, December 31, Finance leases and installment sale contracts – Retail $ 15,544 $ 14,647 Retail notes receivable 8,382 9,417 Wholesale notes receivable 4,781 4,161 Finance leases and installment sale contracts – Wholesale 147 119 28,854 28,344 Less: Unearned income (926 ) (853 ) Recorded investment in finance receivables 27,928 27,491 Less: Allowance for credit losses (416 ) (365 ) Total finance receivables, net $ 27,512 $ 27,126 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 September 30, 2018 was $416 million or 1.49 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) September 30, 2018 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 353 $ 9 $ 3 $ 365 Receivables written off (181 ) — — (181 ) Recoveries on receivables previously written off 31 — — 31 Provision for credit losses 216 (2 ) 1 215 Adjustment due to sale of receivables (6 ) — — (6 ) Foreign currency translation adjustment (8 ) — — (8 ) Balance at end of period $ 405 $ 7 $ 4 $ 416 Individually evaluated for impairment $ 229 $ — $ — $ 229 Collectively evaluated for impairment 176 7 4 187 Ending Balance $ 405 $ 7 $ 4 $ 416 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 803 $ — $ — $ 803 Collectively evaluated for impairment 18,771 4,338 4,016 27,125 Ending Balance $ 19,574 $ 4,338 $ 4,016 $ 27,928 (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 receivables past due when any installment is over 30 days past due. The tables below summarize our recorded investment in finance receivables by aging category. (Millions of dollars) September 30, 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 $ 74 $ 17 $ 46 $ 137 $ 7,921 $ 8,058 $ 7 Europe 19 9 122 150 2,848 2,998 6 Asia/Pacific 31 14 8 53 2,885 2,938 5 Mining 5 — 9 14 1,623 1,637 — Latin America 35 15 84 134 1,385 1,519 — Caterpillar Power Finance 116 45 298 459 1,965 2,424 8 Dealer North America — — — — 2,435 2,435 — Europe — — — — 580 580 — Asia/Pacific — — — — 502 502 — Mining — — — — 4 4 — Latin America — — 79 79 734 813 — Caterpillar Power Finance — — — — 4 4 — Caterpillar Purchased Receivables (1) North America 17 10 11 38 2,618 2,656 Europe 1 — 2 3 448 451 Asia/Pacific 2 — 1 3 588 591 Mining — — — — — — Latin America — — — — 314 314 Caterpillar Power Finance 1 — — 1 3 4 Total $ 301 $ 110 $ 660 $ 1,071 $ 26,857 $ 27,928 $ 26 (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 September 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 September 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 $ 17 $ 17 $ — $ 19 $ 19 $ — Europe 2 1 — 45 45 — Asia/Pacific 29 29 — 34 33 — Mining 34 34 — 121 121 — Latin America 31 31 — 45 45 — Caterpillar Power Finance 61 74 — 160 172 — Total $ 174 $ 186 $ — $ 424 $ 435 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 41 $ 39 $ 18 $ 44 $ 43 $ 17 Europe 66 66 36 9 8 5 Asia/Pacific 2 2 1 8 8 2 Mining 58 58 22 — — — Latin America 61 61 34 95 106 42 Caterpillar Power Finance 401 408 118 362 365 83 Total $ 629 $ 634 $ 229 $ 518 $ 530 $ 149 Total Impaired Finance Receivables North America $ 58 $ 56 $ 18 $ 63 $ 62 $ 17 Europe 68 67 36 54 53 5 Asia/Pacific 31 31 1 42 41 2 Mining 92 92 22 121 121 — Latin America 92 92 34 140 151 42 Caterpillar Power Finance 462 482 118 522 537 83 Total $ 803 $ 820 $ 229 $ 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 $ 19 $ — $ 14 $ 1 Europe 4 — 47 — Asia/Pacific 30 1 30 1 Mining 35 — 128 1 Latin America 37 1 68 1 Caterpillar Power Finance 94 2 171 1 Total $ 219 $ 4 $ 458 $ 5 Impaired Finance Receivables With An Allowance Recorded North America $ 47 $ — $ 44 $ — Europe 59 — 6 — Asia/Pacific 2 — 28 1 Mining 60 1 — — Latin America 51 1 102 1 Caterpillar Power Finance 374 4 251 3 Total $ 593 $ 6 $ 431 $ 5 Total Impaired Finance Receivables North America $ 66 $ — $ 58 $ 1 Europe 63 — 53 — Asia/Pacific 32 1 58 2 Mining 95 1 128 1 Latin America 88 2 170 2 Caterpillar Power Finance 468 6 422 4 Total $ 812 $ 10 $ 889 $ 10 (Millions of dollars) Nine Months Ended Nine Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 17 $ 1 $ 12 $ 1 Europe 17 — 48 1 Asia/Pacific 31 2 22 2 Mining 65 2 128 5 Latin America 41 2 69 2 Caterpillar Power Finance 149 5 233 7 Total $ 320 $ 12 $ 512 $ 18 Impaired Finance Receivables With An Allowance Recorded North America $ 51 $ 1 $ 52 $ 1 Europe 41 1 6 — Asia/Pacific 5 — 35 2 Mining 43 2 — — Latin America 69 3 101 3 Caterpillar Power Finance 364 8 141 4 Total $ 573 $ 15 $ 335 $ 10 Total Impaired Finance Receivables North America $ 68 $ 2 $ 64 $ 2 Europe 58 1 54 1 Asia/Pacific 36 2 57 4 Mining 108 4 128 5 Latin America 110 5 170 5 Caterpillar Power Finance 513 13 374 11 Total $ 893 $ 27 $ 847 $ 28 Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. As of September 30, 2018 , there were $79 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) September 30, December 31, North America $ 44 $ 38 Europe 124 37 Asia/Pacific 4 10 Mining 10 63 Latin America 118 192 Caterpillar Power Finance 451 343 Total $ 751 $ 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 September 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 nine months ended September 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 4 $ — $ — 11 $ 4 $ 5 Europe — — — 1 — — Latin America — — — 3 21 22 Caterpillar Power Finance 2 40 40 5 51 44 Total 6 $ 40 $ 40 20 $ 76 $ 71 Nine Months Ended Nine Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 34 $ 13 $ 13 37 $ 13 $ 13 Europe — — — 2 — — Asia/Pacific — — — 6 39 30 Mining 1 29 29 2 57 56 Latin America 1 3 3 17 26 27 Caterpillar Power Finance (1) 7 93 60 59 319 305 Total 43 $ 138 $ 105 123 $ 454 $ 431 (1) In Caterpillar Power Finance, during the nine months ended September 30, 2017, 44 contracts with a pre-TDR recorded investment of $200 million and a post-TDR recorded investment of $200 million were related to four customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 7 $ 9 — $ — Latin America 1 — 1 — Caterpillar Power Finance 3 33 — — Total 11 $ 42 1 $ — Nine Months Ended Nine Months Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 10 $ 10 — $ — Latin America 3 1 241 16 Caterpillar Power Finance 3 33 — — Total 16 $ 44 241 $ 16

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	9 Months Ended
	Sep. 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 September 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 September 30, December 31, Designated derivatives Interest rate contracts Other assets $ 10 $ 3 Interest rate contracts Accrued expenses (3 ) (2 ) Cross currency contracts Other assets 81 7 Cross currency contracts Accrued expenses (17 ) (57 ) $ 71 $ (49 ) Undesignated derivatives Foreign exchange contracts Other assets $ 42 $ 12 Foreign exchange contracts Accrued expenses (19 ) (9 ) Cross currency contracts Other assets 7 — $ 30 $ 3 The total notional amount of our derivative instruments was $7.52 billion and $3.69 billion as of September 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) $ — $ — $ — $ — Nine Months Ended Nine Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (2 ) $ 2 $ (1 ) $ 1 Cash Flow Hedges (Millions of dollars) Three Months Ended September 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 $ 3 Interest expense $ — $ — Cross currency contracts 53 Other income (expense) 51 — Interest expense 5 — $ 56 $ 56 $ — Three Months Ended September 30, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (1 ) Interest expense $ 1 $ — Cross currency contracts (21 ) Other income (expense) (20 ) — Interest expense 1 — $ (22 ) $ (18 ) $ — Nine Months Ended September 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 $ 8 Interest expense $ 1 $ — Cross currency contracts 143 Other income (expense) 141 — Interest expense 13 — $ 151 $ 155 $ — Nine Months Ended September 30, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (1 ) Interest expense $ 2 $ — Cross currency contracts (62 ) Other income (expense) (69 ) — Interest expense 3 — $ (63 ) $ (64 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended September 30, Classification 2018 2017 Foreign exchange contracts Other income (expense) $ 12 $ 14 Cross currency contracts Other income (expense) 1 (3 ) $ 13 $ 11 Nine Months Ended September 30, Classification 2018 2017 Foreign exchange contracts Other income (expense) $ 23 $ 25 Cross currency contracts Other income (expense) 6 (4 ) $ 29 $ 21 We enter into International Swaps and Derivatives Association (ISDA) master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or us under the master netting agreements. As of September 30, 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) September 30, December 31, Derivative Assets Gross Amount of Recognized Assets $ 140 $ 22 Gross Amounts Offset — — Net Amount of Assets (1) 140 22 Gross Amounts Not Offset (31 ) (10 ) Net Amount $ 109 $ 12 Derivative Liabilities Gross Amount of Recognized Liabilities $ (39 ) $ (68 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (39 ) (68 ) Gross Amounts Not Offset 31 10 Net Amount $ (8 ) $ (58 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	9 Months Ended
	Sep. 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 September 30, 2017 Balance at June 30, 2017 $ (756 ) $ 2 $ 1 $ (753 ) Other comprehensive income/(loss) before reclassifications 151 (14 ) (1 ) 136 Amounts reclassified from accumulated other comprehensive (income)/loss — 11 — 11 Other comprehensive income/(loss) 151 (3 ) (1 ) 147 Balance at September 30, 2017 $ (605 ) $ (1 ) $ — $ (606 ) Three Months Ended September 30, 2018 Balance at June 30, 2018 $ (776 ) $ (8 ) $ — $ (784 ) Other comprehensive income/(loss) before reclassifications (44 ) 42 — (2 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (42 ) — (42 ) Other comprehensive income/(loss) (44 ) — — (44 ) Balance at September 30, 2018 $ (820 ) $ (8 ) $ — $ (828 ) Nine Months Ended September 30, 2017 Balance at December 31, 2016 $ (994 ) $ (1 ) $ — $ (995 ) Other comprehensive income/(loss) before reclassifications 389 (41 ) — 348 Amounts reclassified from accumulated other comprehensive (income)/loss — 41 — 41 Other comprehensive income/(loss) 389 — — 389 Balance at September 30, 2017 $ (605 ) $ (1 ) $ — $ (606 ) Nine Months Ended September 30, 2018 Balance at December 31, 2017 $ (587 ) $ (5 ) $ — $ (592 ) Other comprehensive income/(loss) before reclassifications (233 ) 115 — (118 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (118 ) — (118 ) Other comprehensive income/(loss) (233 ) (3 ) — (236 ) Balance at September 30, 2018 $ (820 ) $ (8 ) $ — $ (828 ) The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Nine Months Ended Derivative financial instruments Classification of income (expense) 2018 2017 2018 2017 Cross currency contracts Other income (expense) $ 51 $ (20 ) $ 141 $ (69 ) Cross currency contracts Interest expense 5 1 13 3 Interest rate contracts Interest expense — 1 1 2 Reclassifications before tax 56 (18 ) 155 (64 ) Tax (provision) benefit (14 ) 7 (37 ) 23 Total reclassifications from Accumulated other comprehensive income/(loss) $ 42 $ (11 ) $ 118 $ (41 )

Segment Information

Segment Information	9 Months Ended
	Sep. 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 September 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 September 30, 2018 Capital expenditures North America $ 402 $ 121 $ 94 $ 148 $ 7 $ 15,559 $ 204 Europe 69 12 12 17 8 4,663 20 Asia/Pacific 92 44 29 4 — 4,477 3 Latin America 61 15 23 6 6 2,936 1 Caterpillar Power Finance 33 (21 ) 13 1 34 2,502 — Mining 64 19 15 32 (7 ) 2,186 67 Total Segments 721 190 186 208 48 32,323 295 Unallocated 23 (72 ) 62 — (1 ) 1,923 3 Timing (9 ) 6 — — — 70 — Methodology — 39 (54 ) — — (152 ) — Inter-segment Eliminations (1) — — — — — (327 ) — Total $ 735 $ 163 $ 194 $ 208 $ 47 $ 33,837 $ 298 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 $ 338 $ 90 $ 77 $ 130 $ 11 $ 14,790 $ 187 Europe 68 20 9 19 2 4,332 25 Asia/Pacific 68 25 22 5 1 4,214 2 Latin America 61 (16 ) 30 10 17 3,407 6 Caterpillar Power Finance 40 18 11 — 3 2,746 — Mining 71 12 12 36 4 2,399 88 Total Segments 646 149 161 200 38 31,888 308 Unallocated 35 (47 ) 50 — — 1,719 — Timing (8 ) (13 ) — 1 10 53 — Methodology — 37 (42 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 673 $ 126 $ 169 $ 201 $ 48 $ 33,160 $ 308 (1) Elimination is primarily related to intercompany loans. Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2018 Capital expenditures North America $ 1,141 $ 321 $ 267 $ 427 $ 32 $ 15,559 $ 870 Europe 208 24 35 56 32 4,663 56 Asia/Pacific 269 128 84 14 (5 ) 4,477 10 Latin America 193 (1 ) 77 21 54 2,936 28 Caterpillar Power Finance 98 (60 ) 40 2 98 2,502 — Mining 196 35 45 95 1 2,186 131 Total Segments 2,105 447 548 615 212 32,323 1,095 Unallocated 68 (204 ) 182 1 (1 ) 1,923 97 Timing (25 ) 12 — — 7 70 — Methodology — 132 (172 ) — — (152 ) — Inter-segment Eliminations (1) — — — — — (327 ) — Total $ 2,148 $ 387 $ 558 $ 616 $ 218 $ 33,837 $ 1,192 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 $ 989 $ 262 $ 224 $ 388 $ 25 $ 14,790 $ 722 Europe 200 62 27 60 — 4,332 71 Asia/Pacific 197 73 64 19 (5 ) 4,214 5 Latin America 216 (6 ) 92 31 46 3,407 48 Caterpillar Power Finance 119 54 32 2 10 2,746 — Mining 213 57 37 107 (5 ) 2,399 168 Total Segments 1,934 502 476 607 71 31,888 1,014 Unallocated 100 (128 ) 139 — — 1,719 4 Timing (23 ) (20 ) — 1 11 53 — Methodology — 103 (116 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 2,011 $ 457 $ 499 $ 608 $ 82 $ 33,160 $ 1,018 (1) Elimination is primarily related to intercompany loans.

Guarantees

Guarantees	9 Months Ended
	Sep. 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 September 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 $87 million and $91 million at September 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 September 30, 2018 and December 31, 2017 , the SPC’s assets of $1.13 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 $1.13 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	9 Months Ended
	Sep. 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 $101 million as of September 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 $366 million and $341 million as of September 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) September 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 676 $ 676 $ 708 $ 708 1 Restricted cash and cash equivalents (2) $ 3 $ 3 $ 24 $ 24 1 Finance receivables, net (excluding finance leases (1) ) $ 20,021 $ 19,944 $ 20,063 $ 20,019 3 Note 3 Interest rate contracts: In a receivable position $ 10 $ 10 $ 3 $ 3 2 Note 4 In a payable position $ (3 ) $ (3 ) $ (2 ) $ (2 ) 2 Note 4 Cross currency contracts: In a receivable position $ 88 $ 88 $ 7 $ 7 2 Note 4 In a payable position $ (17 ) $ (17 ) $ (57 ) $ (57 ) 2 Note 4 Foreign exchange contracts: In a receivable position $ 42 $ 42 $ 12 $ 12 2 Note 4 In a payable position $ (19 ) $ (19 ) $ (9 ) $ (9 ) 2 Note 4 Short-term borrowings $ (4,462 ) $ (4,462 ) $ (4,836 ) $ (4,836 ) 1 Long-term debt $ (23,251 ) $ (23,110 ) $ (22,106 ) $ (22,230 ) 2 Guarantees $ — $ — $ — $ — 3 Note 7 (1) As of September 30, 2018 and December 31, 2017 , represents finance leases with a net carrying value of $7.49 billion and $7.06 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Contingencies

Contingencies	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 third quarter of 2018 , compared with 30 percent in the third 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. In addition, a one-time only tax benefit of $7 million was recorded in the third quarter of 2018 for the write-down of net deferred tax liabilities resulting from the 2017 tax year return to provision adjustments. The write-down reflects the reduction in the U.S. corporate tax rate from 35 percent to 21 percent beginning January 1, 2018. Our analysis of U.S. tax reform legislation, updated through September 30, 2018, resulted in no other changes to the 2017 year-end provisional charge. We will continue to update our calculations as additional required information is prepared and analyzed, interpretations and assumptions are refined, and additional guidance is issued. These updates could significantly impact the provision for income taxes, the amount of taxes payable and the deferred tax asset and liability balances. We account for the new U.S. tax on global intangible low-taxed income as a period cost.

Finance Receivables (Tables)

Finance Receivables (Tables)	9 Months Ended
	Sep. 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) September 30, December 31, Finance leases and installment sale contracts – Retail $ 15,544 $ 14,647 Retail notes receivable 8,382 9,417 Wholesale notes receivable 4,781 4,161 Finance leases and installment sale contracts – Wholesale 147 119 28,854 28,344 Less: Unearned income (926 ) (853 ) Recorded investment in finance receivables 27,928 27,491 Less: Allowance for credit losses (416 ) (365 ) Total finance receivables, net $ 27,512 $ 27,126
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) September 30, 2018 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 353 $ 9 $ 3 $ 365 Receivables written off (181 ) — — (181 ) Recoveries on receivables previously written off 31 — — 31 Provision for credit losses 216 (2 ) 1 215 Adjustment due to sale of receivables (6 ) — — (6 ) Foreign currency translation adjustment (8 ) — — (8 ) Balance at end of period $ 405 $ 7 $ 4 $ 416 Individually evaluated for impairment $ 229 $ — $ — $ 229 Collectively evaluated for impairment 176 7 4 187 Ending Balance $ 405 $ 7 $ 4 $ 416 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 803 $ — $ — $ 803 Collectively evaluated for impairment 18,771 4,338 4,016 27,125 Ending Balance $ 19,574 $ 4,338 $ 4,016 $ 27,928 (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) September 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 $ 74 $ 17 $ 46 $ 137 $ 7,921 $ 8,058 $ 7 Europe 19 9 122 150 2,848 2,998 6 Asia/Pacific 31 14 8 53 2,885 2,938 5 Mining 5 — 9 14 1,623 1,637 — Latin America 35 15 84 134 1,385 1,519 — Caterpillar Power Finance 116 45 298 459 1,965 2,424 8 Dealer North America — — — — 2,435 2,435 — Europe — — — — 580 580 — Asia/Pacific — — — — 502 502 — Mining — — — — 4 4 — Latin America — — 79 79 734 813 — Caterpillar Power Finance — — — — 4 4 — Caterpillar Purchased Receivables (1) North America 17 10 11 38 2,618 2,656 Europe 1 — 2 3 448 451 Asia/Pacific 2 — 1 3 588 591 Mining — — — — — — Latin America — — — — 314 314 Caterpillar Power Finance 1 — — 1 3 4 Total $ 301 $ 110 $ 660 $ 1,071 $ 26,857 $ 27,928 $ 26 (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 September 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 $ 17 $ 17 $ — $ 19 $ 19 $ — Europe 2 1 — 45 45 — Asia/Pacific 29 29 — 34 33 — Mining 34 34 — 121 121 — Latin America 31 31 — 45 45 — Caterpillar Power Finance 61 74 — 160 172 — Total $ 174 $ 186 $ — $ 424 $ 435 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 41 $ 39 $ 18 $ 44 $ 43 $ 17 Europe 66 66 36 9 8 5 Asia/Pacific 2 2 1 8 8 2 Mining 58 58 22 — — — Latin America 61 61 34 95 106 42 Caterpillar Power Finance 401 408 118 362 365 83 Total $ 629 $ 634 $ 229 $ 518 $ 530 $ 149 Total Impaired Finance Receivables North America $ 58 $ 56 $ 18 $ 63 $ 62 $ 17 Europe 68 67 36 54 53 5 Asia/Pacific 31 31 1 42 41 2 Mining 92 92 22 121 121 — Latin America 92 92 34 140 151 42 Caterpillar Power Finance 462 482 118 522 537 83 Total $ 803 $ 820 $ 229 $ 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 $ 19 $ — $ 14 $ 1 Europe 4 — 47 — Asia/Pacific 30 1 30 1 Mining 35 — 128 1 Latin America 37 1 68 1 Caterpillar Power Finance 94 2 171 1 Total $ 219 $ 4 $ 458 $ 5 Impaired Finance Receivables With An Allowance Recorded North America $ 47 $ — $ 44 $ — Europe 59 — 6 — Asia/Pacific 2 — 28 1 Mining 60 1 — — Latin America 51 1 102 1 Caterpillar Power Finance 374 4 251 3 Total $ 593 $ 6 $ 431 $ 5 Total Impaired Finance Receivables North America $ 66 $ — $ 58 $ 1 Europe 63 — 53 — Asia/Pacific 32 1 58 2 Mining 95 1 128 1 Latin America 88 2 170 2 Caterpillar Power Finance 468 6 422 4 Total $ 812 $ 10 $ 889 $ 10 (Millions of dollars) Nine Months Ended Nine Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 17 $ 1 $ 12 $ 1 Europe 17 — 48 1 Asia/Pacific 31 2 22 2 Mining 65 2 128 5 Latin America 41 2 69 2 Caterpillar Power Finance 149 5 233 7 Total $ 320 $ 12 $ 512 $ 18 Impaired Finance Receivables With An Allowance Recorded North America $ 51 $ 1 $ 52 $ 1 Europe 41 1 6 — Asia/Pacific 5 — 35 2 Mining 43 2 — — Latin America 69 3 101 3 Caterpillar Power Finance 364 8 141 4 Total $ 573 $ 15 $ 335 $ 10 Total Impaired Finance Receivables North America $ 68 $ 2 $ 64 $ 2 Europe 58 1 54 1 Asia/Pacific 36 2 57 4 Mining 108 4 128 5 Latin America 110 5 170 5 Caterpillar Power Finance 513 13 374 11 Total $ 893 $ 27 $ 847 $ 28
Recorded investment in customer finance receivables on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) September 30, December 31, North America $ 44 $ 38 Europe 124 37 Asia/Pacific 4 10 Mining 10 63 Latin America 118 192 Caterpillar Power Finance 451 343 Total $ 751 $ 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 4 $ — $ — 11 $ 4 $ 5 Europe — — — 1 — — Latin America — — — 3 21 22 Caterpillar Power Finance 2 40 40 5 51 44 Total 6 $ 40 $ 40 20 $ 76 $ 71 Nine Months Ended Nine Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 34 $ 13 $ 13 37 $ 13 $ 13 Europe — — — 2 — — Asia/Pacific — — — 6 39 30 Mining 1 29 29 2 57 56 Latin America 1 3 3 17 26 27 Caterpillar Power Finance (1) 7 93 60 59 319 305 Total 43 $ 138 $ 105 123 $ 454 $ 431 (1) In Caterpillar Power Finance, during the nine months ended September 30, 2017, 44 contracts with a pre-TDR recorded investment of $200 million and a post-TDR recorded investment of $200 million were related to four customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 7 $ 9 — $ — Latin America 1 — 1 — Caterpillar Power Finance 3 33 — — Total 11 $ 42 1 $ — Nine Months Ended Nine Months Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 10 $ 10 — $ — Latin America 3 1 241 16 Caterpillar Power Finance 3 33 — — Total 16 $ 44 241 $ 16

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)	9 Months Ended
	Sep. 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 September 30, December 31, Designated derivatives Interest rate contracts Other assets $ 10 $ 3 Interest rate contracts Accrued expenses (3 ) (2 ) Cross currency contracts Other assets 81 7 Cross currency contracts Accrued expenses (17 ) (57 ) $ 71 $ (49 ) Undesignated derivatives Foreign exchange contracts Other assets $ 42 $ 12 Foreign exchange contracts Accrued expenses (19 ) (9 ) Cross currency contracts Other assets 7 — $ 30 $ 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) $ — $ — $ — $ — Nine Months Ended Nine Months Ended Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (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 September 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 $ 3 Interest expense $ — $ — Cross currency contracts 53 Other income (expense) 51 — Interest expense 5 — $ 56 $ 56 $ — Three Months Ended September 30, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (1 ) Interest expense $ 1 $ — Cross currency contracts (21 ) Other income (expense) (20 ) — Interest expense 1 — $ (22 ) $ (18 ) $ — Nine Months Ended September 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 $ 8 Interest expense $ 1 $ — Cross currency contracts 143 Other income (expense) 141 — Interest expense 13 — $ 151 $ 155 $ — Nine Months Ended September 30, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (1 ) Interest expense $ 2 $ — Cross currency contracts (62 ) Other income (expense) (69 ) — Interest expense 3 — $ (63 ) $ (64 ) $ —
Schedule of effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit	The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended September 30, Classification 2018 2017 Foreign exchange contracts Other income (expense) $ 12 $ 14 Cross currency contracts Other income (expense) 1 (3 ) $ 13 $ 11 Nine Months Ended September 30, Classification 2018 2017 Foreign exchange contracts Other income (expense) $ 23 $ 25 Cross currency contracts Other income (expense) 6 (4 ) $ 29 $ 21
Schedule of offsetting of derivative assets and liabilities	The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) September 30, December 31, Derivative Assets Gross Amount of Recognized Assets $ 140 $ 22 Gross Amounts Offset — — Net Amount of Assets (1) 140 22 Gross Amounts Not Offset (31 ) (10 ) Net Amount $ 109 $ 12 Derivative Liabilities Gross Amount of Recognized Liabilities $ (39 ) $ (68 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (39 ) (68 ) Gross Amounts Not Offset 31 10 Net Amount $ (8 ) $ (58 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income/(Loss) (Tables)	9 Months Ended
	Sep. 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 September 30, 2017 Balance at June 30, 2017 $ (756 ) $ 2 $ 1 $ (753 ) Other comprehensive income/(loss) before reclassifications 151 (14 ) (1 ) 136 Amounts reclassified from accumulated other comprehensive (income)/loss — 11 — 11 Other comprehensive income/(loss) 151 (3 ) (1 ) 147 Balance at September 30, 2017 $ (605 ) $ (1 ) $ — $ (606 ) Three Months Ended September 30, 2018 Balance at June 30, 2018 $ (776 ) $ (8 ) $ — $ (784 ) Other comprehensive income/(loss) before reclassifications (44 ) 42 — (2 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (42 ) — (42 ) Other comprehensive income/(loss) (44 ) — — (44 ) Balance at September 30, 2018 $ (820 ) $ (8 ) $ — $ (828 ) Nine Months Ended September 30, 2017 Balance at December 31, 2016 $ (994 ) $ (1 ) $ — $ (995 ) Other comprehensive income/(loss) before reclassifications 389 (41 ) — 348 Amounts reclassified from accumulated other comprehensive (income)/loss — 41 — 41 Other comprehensive income/(loss) 389 — — 389 Balance at September 30, 2017 $ (605 ) $ (1 ) $ — $ (606 ) Nine Months Ended September 30, 2018 Balance at December 31, 2017 $ (587 ) $ (5 ) $ — $ (592 ) Other comprehensive income/(loss) before reclassifications (233 ) 115 — (118 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (118 ) — (118 ) Other comprehensive income/(loss) (233 ) (3 ) — (236 ) Balance at September 30, 2018 $ (820 ) $ (8 ) $ — $ (828 )
Reclassifications out of Accumulated other comprehensive income/(loss)	The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Nine Months Ended Derivative financial instruments Classification of income (expense) 2018 2017 2018 2017 Cross currency contracts Other income (expense) $ 51 $ (20 ) $ 141 $ (69 ) Cross currency contracts Interest expense 5 1 13 3 Interest rate contracts Interest expense — 1 1 2 Reclassifications before tax 56 (18 ) 155 (64 ) Tax (provision) benefit (14 ) 7 (37 ) 23 Total reclassifications from Accumulated other comprehensive income/(loss) $ 42 $ (11 ) $ 118 $ (41 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the three months ended September 30 was as follows: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2018 Capital expenditures North America $ 402 $ 121 $ 94 $ 148 $ 7 $ 15,559 $ 204 Europe 69 12 12 17 8 4,663 20 Asia/Pacific 92 44 29 4 — 4,477 3 Latin America 61 15 23 6 6 2,936 1 Caterpillar Power Finance 33 (21 ) 13 1 34 2,502 — Mining 64 19 15 32 (7 ) 2,186 67 Total Segments 721 190 186 208 48 32,323 295 Unallocated 23 (72 ) 62 — (1 ) 1,923 3 Timing (9 ) 6 — — — 70 — Methodology — 39 (54 ) — — (152 ) — Inter-segment Eliminations (1) — — — — — (327 ) — Total $ 735 $ 163 $ 194 $ 208 $ 47 $ 33,837 $ 298 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 $ 338 $ 90 $ 77 $ 130 $ 11 $ 14,790 $ 187 Europe 68 20 9 19 2 4,332 25 Asia/Pacific 68 25 22 5 1 4,214 2 Latin America 61 (16 ) 30 10 17 3,407 6 Caterpillar Power Finance 40 18 11 — 3 2,746 — Mining 71 12 12 36 4 2,399 88 Total Segments 646 149 161 200 38 31,888 308 Unallocated 35 (47 ) 50 — — 1,719 — Timing (8 ) (13 ) — 1 10 53 — Methodology — 37 (42 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 673 $ 126 $ 169 $ 201 $ 48 $ 33,160 $ 308 (1) Elimination is primarily related to intercompany loans. Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at September 30, 2018 Capital expenditures North America $ 1,141 $ 321 $ 267 $ 427 $ 32 $ 15,559 $ 870 Europe 208 24 35 56 32 4,663 56 Asia/Pacific 269 128 84 14 (5 ) 4,477 10 Latin America 193 (1 ) 77 21 54 2,936 28 Caterpillar Power Finance 98 (60 ) 40 2 98 2,502 — Mining 196 35 45 95 1 2,186 131 Total Segments 2,105 447 548 615 212 32,323 1,095 Unallocated 68 (204 ) 182 1 (1 ) 1,923 97 Timing (25 ) 12 — — 7 70 — Methodology — 132 (172 ) — — (152 ) — Inter-segment Eliminations (1) — — — — — (327 ) — Total $ 2,148 $ 387 $ 558 $ 616 $ 218 $ 33,837 $ 1,192 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 $ 989 $ 262 $ 224 $ 388 $ 25 $ 14,790 $ 722 Europe 200 62 27 60 — 4,332 71 Asia/Pacific 197 73 64 19 (5 ) 4,214 5 Latin America 216 (6 ) 92 31 46 3,407 48 Caterpillar Power Finance 119 54 32 2 10 2,746 — Mining 213 57 37 107 (5 ) 2,399 168 Total Segments 1,934 502 476 607 71 31,888 1,014 Unallocated 100 (128 ) 139 — — 1,719 4 Timing (23 ) (20 ) — 1 11 53 — Methodology — 103 (116 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 2,011 $ 457 $ 499 $ 608 $ 82 $ 33,160 $ 1,018 (1) Elimination is primarily related to intercompany loans.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 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) September 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 676 $ 676 $ 708 $ 708 1 Restricted cash and cash equivalents (2) $ 3 $ 3 $ 24 $ 24 1 Finance receivables, net (excluding finance leases (1) ) $ 20,021 $ 19,944 $ 20,063 $ 20,019 3 Note 3 Interest rate contracts: In a receivable position $ 10 $ 10 $ 3 $ 3 2 Note 4 In a payable position $ (3 ) $ (3 ) $ (2 ) $ (2 ) 2 Note 4 Cross currency contracts: In a receivable position $ 88 $ 88 $ 7 $ 7 2 Note 4 In a payable position $ (17 ) $ (17 ) $ (57 ) $ (57 ) 2 Note 4 Foreign exchange contracts: In a receivable position $ 42 $ 42 $ 12 $ 12 2 Note 4 In a payable position $ (19 ) $ (19 ) $ (9 ) $ (9 ) 2 Note 4 Short-term borrowings $ (4,462 ) $ (4,462 ) $ (4,836 ) $ (4,836 ) 1 Long-term debt $ (23,251 ) $ (23,110 ) $ (22,106 ) $ (22,230 ) 2 Guarantees $ — $ — $ — $ — 3 Note 7 (1) As of September 30, 2018 and December 31, 2017 , represents finance leases with a net carrying value of $7.49 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	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Finance leases and installment sale contracts - Retail	$ 15,544	$ 14,647
Retail notes receivable	8,382	9,417
Wholesale notes receivable	4,781	4,161
Finance leases and installment sale contracts - Wholesale	147	119
Total gross finance receivables	28,854	28,344
Less: Unearned income	(926)	(853)
Recorded Investment in Finance Receivables	27,928	27,491
Less: Allowance for credit losses	(416)	(365)	$ (343)
Total finance receivables, net	$ 27,512	$ 27,126

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Sep. 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			1.49%	1.33%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	365	343
Receivables written off	(181)	(157)
Recoveries on receivables previously written off	31	43
Provision for credit losses	215	129
Adjustment due to sale of receivables	(6)	(1)
Foreign currency translation adjustment	(8)	8
Balance at end of period	416	365
Allowance for Credit Losses
Individually evaluated for impairment			$ 229	$ 149
Collectively evaluated for impairment			187	216
Allowance, Ending Balance	365	343	416	365
Recorded Investment in Finance Receivables
Individually evaluated for impairment			803	942
Collectively evaluated for impairment			27,125	26,549
Recorded Investment in Finance Receivables, Ending Balance			27,928	27,491
Customer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	353	331	405	353
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	353	331
Receivables written off	(181)	(157)
Recoveries on receivables previously written off	31	43
Provision for credit losses	216	129
Adjustment due to sale of receivables	(6)	(1)
Foreign currency translation adjustment	(8)	8
Balance at end of period	405	353
Allowance for Credit Losses
Individually evaluated for impairment			229	149
Collectively evaluated for impairment			176	204
Allowance, Ending Balance	353	331	405	353
Recorded Investment in Finance Receivables
Individually evaluated for impairment			803	942
Collectively evaluated for impairment			18,771	18,847
Recorded Investment in Finance Receivables, Ending Balance			19,574	19,789
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	9	10	7	9
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	9	10
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	(2)	(1)
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	7	9
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			7	9
Allowance, Ending Balance	9	10	7	9
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,338	4,241
Recorded Investment in Finance Receivables, Ending Balance			4,338	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			4,016	3,461
Recorded Investment in Finance Receivables, Ending Balance			$ 4,016	$ 3,461

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	9 Months Ended
	Sep. 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	$ 1,071	$ 845
Current	26,857	26,646
Recorded Investment in Finance Receivables	27,928	27,491
91 Plus, Still Accruing	26	36
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	301	195
61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	110	199
91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	660	451
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,574	19,789
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	137	128
Current	7,921	8,040
Recorded Investment in Finance Receivables	8,058	8,168
91 Plus, Still Accruing	7	8
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	74	71
Customer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	17	15
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	46	42
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	150	77
Current	2,848	2,718
Recorded Investment in Finance Receivables	2,998	2,795
91 Plus, Still Accruing	6	13
Customer | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	19	21
Customer | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	9	10
Customer | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	122	46
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	53	39
Current	2,885	2,520
Recorded Investment in Finance Receivables	2,938	2,559
91 Plus, Still Accruing	5	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	14	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	14	64
Current	1,623	1,751
Recorded Investment in Finance Receivables	1,637	1,815
91 Plus, Still Accruing	0	9
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	5	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	9	60
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	134	234
Current	1,385	1,546
Recorded Investment in Finance Receivables	1,519	1,780
91 Plus, Still Accruing	0	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	35	37
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	15	55
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	84	142
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	459	196
Current	1,965	2,476
Recorded Investment in Finance Receivables	2,424	2,672
91 Plus, Still Accruing	8	1
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	116	20
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	45	32
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	298	144
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,338	4,241
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,435	2,394
Recorded Investment in Finance Receivables	2,435	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	580	417
Recorded Investment in Finance Receivables	580	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	502	578
Recorded Investment in Finance Receivables	502	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	4	5
Recorded Investment in Finance Receivables	4	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	79	72
Current	734	773
Recorded Investment in Finance Receivables	813	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	0	72
Dealer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	79	0
Dealer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	4	2
Recorded Investment in Finance Receivables	4	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	4,016	3,461
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	38	31
Current	2,618	2,010
Recorded Investment in Finance Receivables	2,656	2,041
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	17	24
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	10	5
Caterpillar Purchased Receivables | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	11	2
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	3	4
Current	448	344
Recorded Investment in Finance Receivables	451	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	2	1
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	3	0
Current	588	630
Recorded Investment in Finance Receivables	591	630
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	2	0
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	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	314	437
Recorded Investment in Finance Receivables	314	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	1	0
Current	3	5
Recorded Investment in Finance Receivables	4	5
Caterpillar Purchased Receivables | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 0	$ 0

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 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	$ 174		$ 174		$ 424
Unpaid Principal Balance With No Allowance Recorded	186		186		435
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	629		629		518
Unpaid Principal Balance With An Allowance Recorded	634		634		530
Related Allowance With An Allowance Recorded	229		229		149
Recorded Investment, Total	803		803		942
Unpaid Principal Balance, Total	820		820		965
Related Allowance, Total	229		229		149
Average Recorded Investment With No Allowance Recorded	219	$ 458	320	$ 512
Interest Income Recognized With No Allowance Recorded	4	5	12	18
Average Recorded Investment With An Allowance Recorded	593	431	573	335
Interest Income Recognized With An Allowance Recorded	6	5	15	10
Average Recorded Investment, Total	812	889	893	847
Interest Income Recognized, Total	10	10	27	28
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	17		17		19
Unpaid Principal Balance With No Allowance Recorded	17		17		19
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	41		41		44
Unpaid Principal Balance With An Allowance Recorded	39		39		43
Related Allowance With An Allowance Recorded	18		18		17
Recorded Investment, Total	58		58		63
Unpaid Principal Balance, Total	56		56		62
Related Allowance, Total	18		18		17
Average Recorded Investment With No Allowance Recorded	19	14	17	12
Interest Income Recognized With No Allowance Recorded	0	1	1	1
Average Recorded Investment With An Allowance Recorded	47	44	51	52
Interest Income Recognized With An Allowance Recorded	0	0	1	1
Average Recorded Investment, Total	66	58	68	64
Interest Income Recognized, Total	0	1	2	2
Customer | Europe
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	2		2		45
Unpaid Principal Balance With No Allowance Recorded	1		1		45
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	66		66		9
Unpaid Principal Balance With An Allowance Recorded	66		66		8
Related Allowance With An Allowance Recorded	36		36		5
Recorded Investment, Total	68		68		54
Unpaid Principal Balance, Total	67		67		53
Related Allowance, Total	36		36		5
Average Recorded Investment With No Allowance Recorded	4	47	17	48
Interest Income Recognized With No Allowance Recorded	0	0	0	1
Average Recorded Investment With An Allowance Recorded	59	6	41	6
Interest Income Recognized With An Allowance Recorded	0	0	1	0
Average Recorded Investment, Total	63	53	58	54
Interest Income Recognized, Total	0	0	1	1
Customer | Asia/Pacific
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	29		29		34
Unpaid Principal Balance With No Allowance Recorded	29		29		33
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	2		2		8
Unpaid Principal Balance With An Allowance Recorded	2		2		8
Related Allowance With An Allowance Recorded	1		1		2
Recorded Investment, Total	31		31		42
Unpaid Principal Balance, Total	31		31		41
Related Allowance, Total	1		1		2
Average Recorded Investment With No Allowance Recorded	30	30	31	22
Interest Income Recognized With No Allowance Recorded	1	1	2	2
Average Recorded Investment With An Allowance Recorded	2	28	5	35
Interest Income Recognized With An Allowance Recorded	0	1	0	2
Average Recorded Investment, Total	32	58	36	57
Interest Income Recognized, Total	1	2	2	4
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	34		34		121
Unpaid Principal Balance With No Allowance Recorded	34		34		121
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	58		58		0
Unpaid Principal Balance With An Allowance Recorded	58		58		0
Related Allowance With An Allowance Recorded	22		22		0
Recorded Investment, Total	92		92		121
Unpaid Principal Balance, Total	92		92		121
Related Allowance, Total	22		22		0
Average Recorded Investment With No Allowance Recorded	35	128	65	128
Interest Income Recognized With No Allowance Recorded	0	1	2	5
Average Recorded Investment With An Allowance Recorded	60	0	43	0
Interest Income Recognized With An Allowance Recorded	1	0	2	0
Average Recorded Investment, Total	95	128	108	128
Interest Income Recognized, Total	1	1	4	5
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	31		31		45
Unpaid Principal Balance With No Allowance Recorded	31		31		45
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	61		61		95
Unpaid Principal Balance With An Allowance Recorded	61		61		106
Related Allowance With An Allowance Recorded	34		34		42
Recorded Investment, Total	92		92		140
Unpaid Principal Balance, Total	92		92		151
Related Allowance, Total	34		34		42
Average Recorded Investment With No Allowance Recorded	37	68	41	69
Interest Income Recognized With No Allowance Recorded	1	1	2	2
Average Recorded Investment With An Allowance Recorded	51	102	69	101
Interest Income Recognized With An Allowance Recorded	1	1	3	3
Average Recorded Investment, Total	88	170	110	170
Interest Income Recognized, Total	2	2	5	5
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	61		61		160
Unpaid Principal Balance With No Allowance Recorded	74		74		172
Related Allowance With No Allowance Recorded	0		0		0
Recorded Investment With An Allowance Recorded	401		401		362
Unpaid Principal Balance With An Allowance Recorded	408		408		365
Related Allowance With An Allowance Recorded	118		118		83
Recorded Investment, Total	462		462		522
Unpaid Principal Balance, Total	482		482		537
Related Allowance, Total	118		118		83
Average Recorded Investment With No Allowance Recorded	94	171	149	233
Interest Income Recognized With No Allowance Recorded	2	1	5	7
Average Recorded Investment With An Allowance Recorded	374	251	364	141
Interest Income Recognized With An Allowance Recorded	4	3	8	4
Average Recorded Investment, Total	468	422	513	374
Interest Income Recognized, Total	6	$ 4	13	$ 11
Dealer
Financing Receivable, Impaired
Recorded Investment, Total	0		0		0
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	$ 0		$ 0		$ 0

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 751	$ 683
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	44	38
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	124	37
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	4	10
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	10	63
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	118	192
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	451	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	$ 79

Finance Receivables (Details 6)

Finance Receivables (Details 6) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)contracts	Sep. 30, 2017USD ($)contracts	Sep. 30, 2018USD ($)contracts	Sep. 30, 2017USD ($)contracts	Dec. 31, 2017USD ($)
Financing Receivable, Modifications
Remaining commitments	$ 0		$ 0		$ 0
Finance receivables modified as TDRs
Number of Contracts | contracts	6	20	43	123
Pre-TDR Recorded Investment	$ 40	$ 76	$ 138	$ 454
Post-TDR Recorded Investment	$ 40	$ 71	$ 105	$ 431
Customer
TDRs which had been modified within twelve months of the default date
Number of contracts | contracts	11	1	16	241
Post-TDR Recorded Investment	$ 42	$ 0	$ 44	$ 16
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	4	11	34	37
Pre-TDR Recorded Investment	$ 0	$ 4	$ 13	$ 13
Post-TDR Recorded Investment	$ 0	$ 5	$ 13	$ 13
TDRs which had been modified within twelve months of the default date
Number of contracts | contracts	7	0	10	0
Post-TDR Recorded Investment	$ 9	$ 0	$ 10	$ 0
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts | contracts	0	1	0	2
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	6
Pre-TDR Recorded Investment			$ 0	$ 39
Post-TDR Recorded Investment			$ 0	$ 30
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts			1	2
Pre-TDR Recorded Investment			$ 29	$ 57
Post-TDR Recorded Investment			$ 29	$ 56
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	0	3	1	17
Pre-TDR Recorded Investment	$ 0	$ 21	$ 3	$ 26
Post-TDR Recorded Investment	$ 0	$ 22	$ 3	$ 27
TDRs which had been modified within twelve months of the default date
Number of contracts | contracts	1	1	3	241
Post-TDR Recorded Investment	$ 0	$ 0	$ 1	$ 16
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	2	5	7	59
Pre-TDR Recorded Investment	$ 40	$ 51	$ 93	$ 319
Post-TDR Recorded Investment	$ 40	$ 44	$ 60	$ 305
TDRs which had been modified within twelve months of the default date
Number of contracts | contracts	3	0	3	0
Post-TDR Recorded Investment	$ 33	$ 0	$ 33	$ 0
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 (Four) [Member] | Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts				44
Pre-TDR Recorded Investment				$ 200
Post-TDR Recorded Investment				$ 200

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) $ in Millions	Sep. 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 Instrume_4

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value
Asset Fair Value	$ 140	$ 22
Liability Fair Value	(39)	(68)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	71	(49)
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	10	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	81	7
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(17)	(57)
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	30	3
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	42	12
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(19)	(9)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	$ 7	$ 0

Derivative Financial Instrume_5

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Derivative
Derivative instruments, notional amount	$ 7,520	$ 3,690

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 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)	56	(22)	151	(63)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	56	(18)	155	(64)
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)	3	(1)	8	(1)
Designated derivatives | Cash flow hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	0	1	1	2
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)	53	(21)	143	(62)
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	1	13	3
Recognized in Earnings (Ineffective Portion)	0	0	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)	51	(20)	141	(69)
Recognized in Earnings (Ineffective Portion)	0	0	0	0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	13	11	29	21
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	12	14	23	25
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 1	$ (3)	$ 6	$ (4)

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Offsetting Assets and Liabilities [Abstract]
Gross Amount of Recognized Assets	$ 140	$ 22
Gross Amounts Offset	0	0
Net Amount of Assets	140	22
Gross Amounts Not Offset	(31)	(10)
Net Amount	109	12
Gross Amount of Recognized Liabilities	(39)	(68)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(39)	(68)
Gross Amounts Not Offset	31	10
Net Amount	$ (8)	$ (58)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (784)	$ (753)	$ (592)	$ (995)
Other comprehensive income/(loss) before reclassifications	(2)	136	(118)	348
Amounts reclassified from accumulated other comprehensive (income)/loss	(42)	11	(118)	41
Other comprehensive income/(loss)	(44)	147	(236)	389
Balance at end of period	(828)	(606)	(828)	(606)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(776)	(756)	(587)	(994)
Other comprehensive income/(loss) before reclassifications	(44)	151	(233)	389
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0	0
Other comprehensive income/(loss)	(44)	151	(233)	389
Balance at end of period	(820)	(605)	(820)	(605)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(8)	2	(5)	(1)
Other comprehensive income/(loss) before reclassifications	42	(14)	115	(41)
Amounts reclassified from accumulated other comprehensive (income)/loss	(42)	11	(118)	41
Other comprehensive income/(loss)	0	(3)	(3)	0
Balance at end of period	(8)	(1)	(8)	(1)
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	0	1	0	0
Other comprehensive income/(loss) before reclassifications	0	(1)	0	0
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0	0
Other comprehensive income/(loss)	0	(1)	0	0
Balance at end of period	$ 0	$ 0	$ 0	$ 0

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)		$ (3)	$ (4)	$ (15)	$ (10)
Interest		(194)	(169)	(558)	(499)
Reclassifications before tax		163	126	387	457
Tax (provision) benefit		(32)	(38)	(85)	(137)
Total reclassifications from Accumulated other comprehensive income/(loss)	[1]	125	86	287	315
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax		56	(18)	155	(64)
Tax (provision) benefit		(14)	7	(37)	23
Total reclassifications from Accumulated other comprehensive income/(loss)		42	(11)	118	(41)
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)		51	(20)	141	(69)
Interest		5	1	13	3
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest		$ 0	$ 1	$ 1	$ 2
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Segment Reporting Information
External Revenues	$ 735	$ 673	$ 2,148	$ 2,011
Profit before income taxes	163	126	387	457
Interest Expense	194	169	558	499
Depreciation on equipment leased to others	208	201	616	608
Provision for credit losses	47	48	218	82
Assets	33,837		33,837		$ 33,160
Capital expenditures	298	308	1,192	1,018
Operating Segments
Segment Reporting Information
External Revenues	721	646	2,105	1,934
Profit before income taxes	190	149	447	502
Interest Expense	186	161	548	476
Depreciation on equipment leased to others	208	200	615	607
Provision for credit losses	48	38	212	71
Assets	32,323		32,323		31,888
Capital expenditures	295	308	1,095	1,014
Unallocated
Segment Reporting Information
External Revenues	23	35	68	100
Profit before income taxes	(72)	(47)	(204)	(128)
Interest Expense	62	50	182	139
Depreciation on equipment leased to others	0	0	1	0
Provision for credit losses	(1)	0	(1)	0
Assets	1,923		1,923		1,719
Capital expenditures	3	0	97	4
Timing
Segment Reporting Information
External Revenues	(9)	(8)	(25)	(23)
Profit before income taxes	6	(13)	12	(20)
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	0	1	0	1
Provision for credit losses	0	10	7	11
Assets	70		70		53
Capital expenditures	0	0	0	0
Methodology
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	39	37	132	103
Interest Expense	(54)	(42)	(172)	(116)
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	(152)		(152)		(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	(327)		(327)		(244)
Capital expenditures	0	0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	402	338	1,141	989
Profit before income taxes	121	90	321	262
Interest Expense	94	77	267	224
Depreciation on equipment leased to others	148	130	427	388
Provision for credit losses	7	11	32	25
Assets	15,559		15,559		14,790
Capital expenditures	204	187	870	722
Europe | Operating Segments
Segment Reporting Information
External Revenues	69	68	208	200
Profit before income taxes	12	20	24	62
Interest Expense	12	9	35	27
Depreciation on equipment leased to others	17	19	56	60
Provision for credit losses	8	2	32	0
Assets	4,663		4,663		4,332
Capital expenditures	20	25	56	71
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	92	68	269	197
Profit before income taxes	44	25	128	73
Interest Expense	29	22	84	64
Depreciation on equipment leased to others	4	5	14	19
Provision for credit losses	0	1	(5)	(5)
Assets	4,477		4,477		4,214
Capital expenditures	3	2	10	5
Latin America | Operating Segments
Segment Reporting Information
External Revenues	61	61	193	216
Profit before income taxes	15	(16)	(1)	(6)
Interest Expense	23	30	77	92
Depreciation on equipment leased to others	6	10	21	31
Provision for credit losses	6	17	54	46
Assets	2,936		2,936		3,407
Capital expenditures	1	6	28	48
Caterpillar Power Finance | Operating Segments
Segment Reporting Information
External Revenues	33	40	98	119
Profit before income taxes	(21)	18	(60)	54
Interest Expense	13	11	40	32
Depreciation on equipment leased to others	1	0	2	2
Provision for credit losses	34	3	98	10
Assets	2,502		2,502		2,746
Capital expenditures	0	0	0	0
Mining | Operating Segments
Segment Reporting Information
External Revenues	64	71	196	213
Profit before income taxes	19	12	35	57
Interest Expense	15	12	45	37
Depreciation on equipment leased to others	32	36	95	107
Provision for credit losses	(7)	4	1	(5)
Assets	2,186		2,186		$ 2,399
Capital expenditures	$ 67	$ 88	$ 131	$ 168

Guarantees (Details)

Guarantees (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 87	$ 91
SPC's assets in Consolidated Statements of Financial Position	1,130	1,110
SPC's liabilities in Consolidated Statements of Financial Position	1,130	1,110
Maximum
Guarantor Obligations
Related recorded liability	$ 1	$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Recurring basis | Level 2
Assets
Derivative financial instruments, net asset (liability) position	$ 101	$ (46)

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Sep. 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	$ 366	$ 341

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Sep. 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	(4,462)	(4,836)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	676	708
Restricted cash and cash equivalents	3	24
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(4,462)	(4,836)
Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest rate contracts, in a receivable position	10	3
Foreign exchange contracts, in a receivable position	42	12
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(3)	(2)
Foreign exchange contracts, in a payable position	(19)	(9)
Long-term debt	(23,110)	(22,230)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	19,944	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	676	708
Restricted cash and cash equivalents	3	24
Finance receivables, net (excluding finance leases)	20,021	20,063
Interest rate contracts, in a receivable position	10	3
Foreign exchange contracts, in a receivable position	42	12
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(3)	(2)
Foreign exchange contracts, in a payable position	(19)	(9)
Short-term borrowings	(4,462)	(4,836)
Long-term debt	(23,251)	(22,106)
Guarantees	0	0
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases	7,490	7,060
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	88	7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	(17)	(57)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	88	7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	$ (17)	$ (57)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Estimated annual tax rate	24.00%	30.00%
Write-down of net deferred tax liabilities	$ 7
U.S. corporate tax rate			21.00%	35.00%