Caterpillar Financial Services 10-K 14 Feb 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information Document - USD ($)	12 Months Ended
	Dec. 31, 2018	Feb. 14, 2019
Document Information [Line Items]
Entity Registrant Name	CATERPILLAR FINANCIAL SERVICES CORPORATION
Entity Central Index Key	764,764
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float	$ 0

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Retail finance		$ 1,308	$ 1,235	$ 1,220
Operating lease		1,011	985	1,015
Wholesale finance		415	307	264
Other, net		113	162	96
Total revenues		2,847	2,689	2,595
Expenses:
Interest		757	667	611
Depreciation on equipment leased to others		819	810	841
General, operating and administrative		423	429	391
Provision for credit losses		354	132	135
Other		38	46	41
Total expenses		2,391	2,084	2,019
Other income (expense)		(23)	(15)	(15)
Profit before income taxes		433	590	561
Provision (benefit) for income taxes		108	(4)	171
Profit of consolidated companies		325	594	390
Less: Profit attributable to noncontrolling interests		20	8	6
Profit	[1]	$ 305	$ 586	$ 384
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 325	$ 594	$ 390
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	(309)	414	(104)
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	98	(49)	15
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	(129)	45	(16)
Total Other comprehensive income (loss), net of tax	(340)	410	(105)
Comprehensive income (loss)	(15)	1,004	285
Less: Comprehensive income (loss) attributable to the noncontrolling interests	13	15	(1)
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ (28)	$ 989	$ 286

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income Parenthetical (Parentheticals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ 25	$ 106	$ (25)
Derivative financial instruments:
Gains (losses) deferred, tax	(29)	28	(8)
(Gains) losses reclassified to earnings, tax	$ 38	$ (27)	$ 9

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 766	$ 708
Finance receivables, net	27,923	27,126
Notes receivable from Caterpillar	662	559
Equipment on operating leases, less accumulated depreciation	3,562	3,568
Other assets	1,268	1,199
Total assets	34,181	33,160
Liabilities and shareholder's equity:
Payable to dealers and others	117	190
Payable to Caterpillar - borrowings and other	1,601	1,723
Accrued expenses	259	274
Short-term borrowings	5,723	4,836
Current maturities of long-term debt	5,820	6,188
Long-term debt	16,995	15,918
Other liabilities	817	767
Total liabilities	31,332	29,896
Commitments and contingent liabilities (Note 11)
Common stock - $1 par value Authorized: 2,000 shares; Issued and outstanding: one share (at paid-in amount)	745	745
Additional paid-in capital	2	2
Retained earnings	2,874	2,969
Accumulated other comprehensive income/(loss)	(925)	(592)
Noncontrolling interests	153	140
Total shareholder's equity	2,849	3,264
Total liabilities and shareholder's equity	$ 34,181	$ 33,160

Consolidated Statements of Fi_2

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

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholder's Equity - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Noncontrolling interests
Balance at Dec. 31, 2015	$ 2,975	$ 745	$ 2	$ 2,999	$ (897)	$ 126
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Profit of consolidated companies	390			384		6
Dividend paid to Caterpillar	(275)			(275)
Foreign currency translation, net of tax	(104)				(97)	(7)
Derivative financial instruments, net of tax	(1)				(1)
Balance at Dec. 31, 2016	2,985	745	2	3,108	(995)	125
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Profit of consolidated companies	594			586		8
Dividend paid to Caterpillar	(725)			(725)
Foreign currency translation, net of tax	414				407	7
Derivative financial instruments, net of tax	(4)				(4)
Balance at Dec. 31, 2017	3,264	745	2	2,969	(592)	140
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Profit of consolidated companies	325			305		20
Dividend paid to Caterpillar	(400)			(400)
Foreign currency translation, net of tax	(309)				(302)	(7)
Derivative financial instruments, net of tax	(31)				(31)
Balance at Dec. 31, 2018	$ 2,849	$ 745	$ 2	$ 2,874	$ (925)	$ 153

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Profit of consolidated companies	$ 325	$ 594	$ 390
Adjustments for non-cash items:
Depreciation and amortization	832	820	851
Amortization of receivables purchase discount	(375)	(253)	(207)
Provision for credit losses	354	132	135
Other, net	164	61	75
Changes in assets and liabilities:
Other assets	44	60	(12)
Payable to dealers and others	(57)	(66)	36
Accrued expenses	(6)	31	(61)
Other payables with Caterpillar	(10)	36	(13)
Other liabilities	16	(188)	217
Net cash provided by operating activities	1,287	1,227	1,411
Cash flows from investing activities:
Expenditures for equipment on operating leases	(1,451)	(1,362)	(1,628)
Capital expenditures - excluding equipment on operating leases	(108)	(11)	(8)
Proceeds from disposals of equipment	793	1,003	789
Additions to finance receivables	(13,595)	(13,920)	(11,862)
Collections of finance receivables	12,511	14,353	12,341
Net changes in Caterpillar purchased receivables	(1,046)	(732)	399
Proceeds from sales of receivables	477	127	127
Net change in variable lending to Caterpillar	(58)	(51)	30
Additions to other notes receivable with Caterpillar	(390)	(53)	(146)
Collections on other notes receivable with Caterpillar	345	75	76
Settlements of undesignated derivatives	10	45	(25)
Other, net	0	(6)	5
Net cash provided by (used for) investing activities	(2,512)	(532)	98
Cash flows from financing activities:
Net change in variable lending from Caterpillar	(109)	40	1,492
Proceeds from borrowings with Caterpillar	0	0	253
Payments on borrowings with Caterpillar	0	(49)	(1,203)
Proceeds from debt issued (original maturities greater than three months)	8,850	8,702	5,109
Payments on debt issued (original maturities greater than three months)	(7,822)	(6,923)	(6,035)
Short-term borrowings, net (original maturities three months or less)	762	(2,854)	(61)
Dividend paid to Caterpillar	(400)	(725)	(275)
Net cash provided by (used for) financing activities	1,281	(1,809)	(720)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(15)	22	1
Increase/(decrease) in cash, cash equivalents and restricted cash	41	(1,092)	790
Cash, cash equivalents and restricted cash at beginning of period	732	1,824	1,034
Cash, cash equivalents and restricted cash at end of period	773	732	1,824
Cash paid for interest	743	647	608
Cash (received) paid for taxes	$ 79	159	(61)
Cash and cash equivalents policy	All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.
Restricted cash and cash equivalents	$ 7	$ 24	29
Non-cash activity:
Debt exchange, original medium term notes amount			381
Debt exchange, new medium term notes amount			$ 366
Debt exchange, new medium term notes interest rate (as a percent)			1.93%
Debt exchange, new medium term notes due date (year)			2,021
Debt exchange, cash paid			$ 15
Debt exchange premium			$ 33

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Nature of Operations Caterpillar Financial Services Corporation, a Delaware corporation organized in 1981 (together with its subsidiaries, "Cat Financial," "the Company," "we" and "our"), is a wholly-owned finance subsidiary of Caterpillar Inc. (together with its other subsidiaries, "Caterpillar" or "Cat"). Our primary business is to provide retail and wholesale financing alternatives for Caterpillar products to customers and dealers around the world. Retail financing is primarily comprised of financing of Caterpillar equipment, machinery and engines. In addition, we also provide financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. We also provide wholesale financing to Caterpillar dealers and purchase short-term receivables from Caterpillar. The various financing plans offered by Cat Financial are primarily designed to increase the opportunity for sales of Caterpillar products and generate financing income for Cat Financial. A significant portion of our activities is conducted in North America. However, we have additional offices and subsidiaries in Latin America, Asia/Pacific, Europe, Africa and the Middle East. B. Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs) in which Cat Financial is the primary beneficiary. We consolidate all VIEs where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 11 for more information. We have customers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. Certain amounts for prior years have been reclassified to conform with current-year financial statement presentation. C. Revenue Recognition Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of purchased receivables discount and certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and operating lease revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed, and previously suspended income is recognized, when the account becomes current and collection of remaining amounts is considered probable. We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate. Other revenue includes: (1) late charges, (2) fee revenue, primarily commitment fees and fees on committed lines of credit or letters of credit, (3) gains and losses on sales of returned or repossessed equipment, (4) impairments on returned or repossessed equipment held for sale, (5) gains and losses on loan and lease sales and (6) other miscellaneous revenues. Other revenue items are recognized in accordance with relevant authoritative pronouncements. D. Depreciation Depreciation for equipment on operating leases is recognized using the straight-line method over the lease term, typically one to seven years. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. E. Residual Values The residuals for leases classified as operating leases are included in Equipment on operating leases. The residuals for leases classified as finance leases, in accordance with lease accounting, are included in finance receivables. During the term of the equipment on operating leases, we evaluate our depreciation on a regular basis taking into consideration expected residual values at lease termination. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. For finance leases, residual value adjustments are recognized through a reduction of finance revenue. We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, the fair value of the equipment on operating leases is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value. F. Derivative Financial Instruments Our earnings and cash 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. All derivatives are recorded at fair value. See Note 9 for additional information. G. Allowance for Credit Losses The allowance for credit losses is an estimate of the losses inherent in our finance receivable portfolio and includes consideration of accounts that have been individually identified as impaired, as well as pools of finance receivables where it is probable that certain receivables in the pool are impaired but the individual accounts cannot yet be identified. In identifying and measuring impairment, management takes into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions. Accounts are identified for individual review based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated and determined to be impaired is based on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. The allowance for credit losses attributable to the remaining accounts not yet individually identified as impaired is estimated based on loss forecast models utilizing probabilities of default, our estimate of the loss emergence period and the estimated loss given default. In addition, qualitative factors not able to be fully captured in our loss forecast models including industry trends, macroeconomic factors and model imprecision are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). The amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. H. Income Taxes The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year. I. Foreign Currency Translation The functional currency for most of our subsidiaries is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in the Consolidated Statements of Profit. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income/(loss) in the Consolidated Statements of Financial Position. J. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates. K. New Accounting Pronouncements Revenue recognition – In May 2014, the Financial Accounting Standards Board (FASB) issued new revenue recognition guidance to provide a single, comprehensive revenue recognition model for all contracts with customers. Under the new guidance, an entity will recognize revenue to depict the transfer of promised goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. A five step model has been introduced for an entity to apply when recognizing revenue. The new guidance also includes enhanced disclosure requirements. 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. 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. The new guidance was effective January 1, 2019 and will be applied using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of January 1, 2019. The new guidance provides a number of optional practical expedients in transition. We elected 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 did not elect the use-of-hindsight practical expedient. In addition, the new guidance provides practical expedients for an entity’s ongoing lessee accounting. We have elected to not separate lease and non-lease components for the majority of our asset classes. We have elected 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. The most significant effects of adoption relate to the recognition of right-of-use assets and lease liabilities on our balance sheet for operating leases and providing new disclosures about our leasing activities. We currently expect the right-of-use assets and lease liabilities as of January 1, 2019 will be approximately $20 million . We do not expect the new guidance to have a material impact on our results of operations. 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 plan to adopt the new guidance effective January 1, 2020. 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 was effective January 1, 2019, and will be applied using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of January 1, 2019. We 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 (AOCI) to retained earnings for stranded tax effects resulting from U.S. tax reform legislation. The guidance was effective January 1, 2019, and we will make the reclassification in the period of adoption. We currently expect the reclassification from AOCI to retained earnings to have a $97 million decrease on retained earnings and an increase on AOCI.

Finance Receivables

Finance Receivables	12 Months Ended
	Dec. 31, 2018
Receivables [Abstract]
Finance Receivables	FINANCE RECEIVABLES A summary of finance receivables included in the Consolidated Statements of Financial Position as of December 31, was as follows: (Millions of dollars) 2018 2017 Retail loans, net $ 15,509 $ 16,142 Retail leases, net 7,499 7,111 Caterpillar purchased receivables, net 4,691 3,461 Wholesale loans, net 626 691 Wholesale leases, net 109 86 Recorded investment in finance receivables 28,434 27,491 Less: Allowance for credit losses (511 ) (365 ) Total finance receivables, net $ 27,923 $ 27,126 Maturities of our finance receivables, as of December 31, 2018 , reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail loans Retail leases Caterpillar purchased receivables Wholesale loans Wholesale leases Total 2019 $ 5,947 $ 3,024 $ 4,745 $ 386 $ 29 $ 14,131 2020 3,851 2,055 — 120 21 6,047 2021 2,629 1,092 — 88 12 3,821 2022 1,790 465 — 31 5 2,291 2023 853 171 — 1 2 1,027 Thereafter 699 62 — — 2 763 Total 15,769 6,869 4,745 626 71 28,080 Guaranteed residual value — 416 — — 42 458 Unguaranteed residual value — 854 — — 3 857 Unearned income (260 ) (640 ) (54 ) — (7 ) (961 ) Total $ 15,509 $ 7,499 $ 4,691 $ 626 $ 109 $ 28,434 Our finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity and we also sell finance receivables to third parties to mitigate the concentration of credit risk with certain customers. Accordingly, this presentation should not be regarded as a forecast of future cash collections. 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 end-user 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, Southeast Asia and India. • 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 December 31, 2018 was $511 million or 1.80 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) December 31, 2018 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 353 $ 9 $ 3 $ 365 Receivables written off (235 ) — — (235 ) Recoveries on receivables previously written off 46 — — 46 Provision for credit losses 337 12 1 350 Adjustment due to sale of receivables (7 ) — — (7 ) Foreign currency translation adjustment (8 ) — — (8 ) Balance at end of year $ 486 $ 21 $ 4 $ 511 Individually evaluated for impairment $ 288 $ 14 $ — $ 302 Collectively evaluated for impairment 198 7 4 209 Ending Balance $ 486 $ 21 $ 4 $ 511 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 859 $ 78 $ — $ 937 Collectively evaluated for impairment 18,724 4,082 4,691 27,497 Ending Balance $ 19,583 $ 4,160 $ 4,691 $ 28,434 (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) December 31, 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 $ 65 $ 18 $ 84 $ 167 $ 7,883 $ 8,050 $ 14 Europe 19 9 153 181 2,850 3,031 5 Asia/Pacific 25 9 8 42 2,923 2,965 5 Mining 28 1 9 38 1,642 1,680 — Latin America 38 29 71 138 1,421 1,559 — Caterpillar Power Finance 10 1 384 395 1,903 2,298 — Dealer North America — — — — 2,210 2,210 — Europe — — — — 619 619 — Asia/Pacific — — — — 514 514 — Mining — — — — 4 4 — Latin America — — 78 78 731 809 — Caterpillar Power Finance — — — — 4 4 — Caterpillar Purchased Receivables (1) North America 22 12 18 52 2,982 3,034 Europe 1 — 1 2 546 548 Asia/Pacific 5 1 1 7 756 763 Mining — — — — — — Latin America — — — — 338 338 Caterpillar Power Finance — — — — 8 8 Total $ 213 $ 80 $ 807 $ 1,100 $ 27,334 $ 28,434 $ 24 (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 $78 million in impaired finance receivables, as of December 31, 2018 , for the Dealer portfolio segment. There were no impaired finance receivables, as of December 31, 2017 and 2016 , for the Dealer portfolio segment. There were no impaired finance receivables as of December 31, 2018, 2017 and 2016 for the Caterpillar Purchased Receivables portfolio segment. Our recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: (Millions of dollars) As of December 31, 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 $ 10 $ 10 $ — $ 19 $ 19 $ — Europe 1 1 — 45 45 — Asia/Pacific 1 1 — 34 33 — Mining 33 33 — 121 121 — Latin America 29 29 — 45 45 — Caterpillar Power Finance 69 83 — 160 172 — Total $ 143 $ 157 $ — $ 424 $ 435 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 40 $ 41 $ 14 $ 44 $ 43 $ 17 Europe 92 92 57 9 8 5 Asia/Pacific 4 4 2 8 8 2 Mining 56 55 26 — — — Latin America 75 75 25 95 106 42 Caterpillar Power Finance 449 455 164 362 365 83 Total $ 716 $ 722 $ 288 $ 518 $ 530 $ 149 Total Impaired Finance Receivables North America $ 50 $ 51 $ 14 $ 63 $ 62 $ 17 Europe 93 93 57 54 53 5 Asia/Pacific 5 5 2 42 41 2 Mining 89 88 26 121 121 — Latin America 104 104 25 140 151 42 Caterpillar Power Finance 518 538 164 522 537 83 Total $ 859 $ 879 $ 288 $ 942 $ 965 $ 149 (Millions of dollars) Year Ended Year Ended Year Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 16 $ 1 $ 13 $ 1 $ 18 $ 1 Europe 14 — 48 1 46 1 Asia/Pacific 28 3 24 2 2 — Mining 57 2 126 7 98 4 Latin America 38 2 64 3 47 1 Caterpillar Power Finance 130 7 221 9 270 11 Total $ 283 $ 15 $ 496 $ 23 $ 481 $ 18 Impaired Finance Receivables With An Allowance Recorded North America $ 49 $ 2 $ 49 $ 1 $ 34 $ — Europe 53 2 6 — 11 1 Asia/Pacific 5 — 31 2 37 3 Mining 46 3 — — 13 — Latin America 67 3 99 4 66 2 Caterpillar Power Finance 378 12 180 6 50 1 Total $ 598 $ 22 $ 365 $ 13 $ 211 $ 7 Total Impaired Finance Receivables North America $ 65 $ 3 $ 62 $ 2 $ 52 $ 1 Europe 67 2 54 1 57 2 Asia/Pacific 33 3 55 4 39 3 Mining 103 5 126 7 111 4 Latin America 105 5 163 7 113 3 Caterpillar Power Finance 508 19 401 15 320 12 Total $ 881 $ 37 $ 861 $ 36 $ 692 $ 25 Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. As of December 31, 2018 , there were $78 million in finance receivables on non-accrual status for the Dealer portfolio segment. 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 as of December 31, was as follows: (Millions of dollars) 2018 2017 North America $ 77 $ 38 Europe 154 37 Asia/Pacific 4 10 Mining 50 63 Latin America 106 192 Caterpillar Power Finance 416 343 Total $ 807 $ 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 December 31, 2018 and 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 years ended December 31, 2018 , 2017 and 2016 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2018 , 2017 and 2016 , were as follows: (Dollars in millions) Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 38 $ 21 $ 21 Europe — — — Asia/Pacific — — — Mining 1 29 29 Latin America 1 3 3 Caterpillar Power Finance 12 133 99 Total 52 $ 186 $ 152 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 43 $ 34 $ 35 Europe 4 1 1 Asia/Pacific 10 39 31 Mining 2 57 56 Latin America 17 26 27 Caterpillar Power Finance (1) 68 422 407 Total 144 $ 579 $ 557 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 25 $ 25 $ 25 Europe 43 12 9 Asia/Pacific 31 29 28 Mining 4 74 66 Latin America (2) 437 118 82 Caterpillar Power Finance 34 196 177 Total 574 $ 454 $ 387 (1) In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers. (2) In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million were related to four customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2018 , 2017 and 2016 , which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Year Ended Year Ended Year Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 10 $ 10 4 $ 3 5 $ 2 Europe — — 1 — 5 2 Asia/Pacific — — 4 1 1 — Latin America (1) 3 1 243 17 4 1 Caterpillar Power Finance 3 33 — — — — Total 16 $ 44 252 $ 21 15 $ 5 (1) In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.

Equipment on Operating Leases

Equipment on Operating Leases	12 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Equipment on Operating Leases	EQUIPMENT ON OPERATING LEASES Components of equipment on operating leases, less accumulated depreciation as of December 31, were as follows: (Millions of dollars) 2018 2017 Equipment on operating leases, at cost $ 5,201 $ 5,204 Less: Accumulated depreciation (1,639 ) (1,636 ) Equipment on operating leases, net $ 3,562 $ 3,568 At December 31, 2018 , scheduled minimum rental payments for operating leases were as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 808 $ 503 $ 257 $ 115 $ 41 $ 15 $ 1,739

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2018
Other Assets [Abstract]
Other Assets	OTHER ASSETS The components of other assets as of December 31, were as follows: (Millions of dollars) 2018 2017 Customer and other miscellaneous receivables $ 480 $ 457 Collateral held for resale, at net realizable value 316 432 Deferred and refundable income taxes 191 174 Property and equipment, net 128 62 Other (1) 153 74 Total other assets $ 1,268 $ 1,199 (1) Includes $33 million and $31 million of other receivables from Caterpillar as of December 31, 2018 and 2017, respectively.

Concentration of Credit Risk

Concentration of Credit Risk	12 Months Ended
	Dec. 31, 2018
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	CONCENTRATION OF CREDIT RISK Financial instruments with potential credit risk consist primarily of finance receivables. Additionally, to a lesser extent, we have potential credit risk associated with counterparties to derivative contracts. As of December 31, 2018 and 2017 , receivables from customers in construction-related industries made up approximately one-third of our total portfolio of which customers in North America were approximately 60 percent. No single customer or dealer represented a significant concentration of credit risk. We typically maintain a security interest in retail financed equipment and, in some instances, wholesale financed equipment. We also require physical damage insurance coverage on all financed equipment. See Note 16 for further information concerning business segments. For derivative contracts, collateral is generally not required of the counterparties or of us. We enter into International Swaps and Derivatives Association (ISDA) master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. The master netting agreements reduce the amount of loss the company would incur should the counterparties fail to meet their obligations. At December 31, 2018 and 2017 , the maximum exposure to credit loss, was $112 million and $22 million , respectively, before the application of any master netting agreements. See Note 9 for further information concerning derivatives.

Credit Commitments

Credit Commitments	12 Months Ended
	Dec. 31, 2018
Credit Commitments [Abstract]
Credit Commitments	CREDIT COMMITMENTS Revolving credit facilities We have three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and us for general liquidity purposes. Based on management's allocation decision, which can be revised from time to time, the portion of the Credit Facility available to us as of December 31, 2018 was $7.75 billion . Information on our Credit Facility is as follows: • The 364-day facility of $3.15 billion (of which $2.33 billion is available to us) expires in September 2019. • The three-year facility, as amended in September 2018, of $2.73 billion (of which $2.01 billion is available to us) expires in September 2021. • The five-year facility, as amended in September 2018, of $4.62 billion (of which $3.41 billion is available to us) expires in September 2023. At December 31, 2018 , Caterpillar’s consolidated net worth was $14.07 billion , which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined in the Credit Facility as the consolidated shareholders' equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income/(loss). At December 31, 2018 , our covenant interest coverage ratio was 1.56 to 1 . This is above the 1.15 to 1 minimum ratio, calculated as (1) profit excluding income taxes, interest expense and net gain/(loss) from interest rate derivatives to (2) interest expense, calculated at the end of each calendar quarter for the rolling four quarter period then most recently ended, required by the Credit Facility. In addition, at December 31, 2018 , our six-month covenant leverage ratio was 7.69 to 1 and our year-end covenant leverage ratio was 8.33 to 1 . This is below the maximum ratio of debt to net worth of 10 to 1 , calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility. In the event that either Caterpillar or we do not meet one or more of our respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants. Additionally, in such event, certain of our other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable, may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings. At December 31, 2018 , there were no borrowings under the Credit Facility. Bank borrowings Available credit lines with banks as of December 31, 2018 totaled $4.58 billion . These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our non-U.S. subsidiaries for local funding requirements. As of December 31, 2018 and 2017 , we had $1.17 billion and $1.48 billion , respectively, outstanding against these credit lines and were in compliance with all debt covenants under these credit lines. The remaining available credit commitments may be withdrawn any time at the lenders' discretion. Variable denomination floating rate demand notes We obtain funding from the sale of variable denomination floating rate demand notes, which may be redeemed at any time at the option of the holder without any material restriction. We do not hold reserves to fund the payment of the demand notes. The notes are offered on a continuous basis. As of December 31, 2018 and 2017 , there was $438 million and $481 million of variable denomination floating rate demand notes outstanding. The maximum amount of variable denomination floating rate demand notes that we may have outstanding at any time may not exceed $1.25 billion . Notes receivable from/payable to Caterpillar Under our variable amount and term lending agreements and other notes receivable with Caterpillar, we may borrow up to $2.75 billion from Caterpillar and Caterpillar may borrow up to $2.14 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years . We had notes payable of $1.52 billion and notes receivable of $662 million outstanding under these agreements as of December 31, 2018 , compared with notes payable of $1.64 billion and notes receivable of $559 million as of December 31, 2017 . Committed credit facility We extended a $2 billion committed credit facility to Caterpillar, which expires in February 2019. We receive a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. At December 31, 2018 , there were no borrowings under this credit facility.

Short-Term Borrowings

Short-Term Borrowings	12 Months Ended
	Dec. 31, 2018
Short-term Debt [Abstract]
Short-Term Borrowings	SHORT-TERM BORROWINGS Short-term borrowings outstanding as of December 31, were comprised of the following: (Millions of dollars) 2018 2017 Balance Avg. Rate Balance Avg. Rate Commercial paper, net $ 4,759 2.0% $ 3,680 1.1% Bank borrowings 526 5.3% 675 5.2% Variable denomination floating rate demand notes 438 2.2% 481 1.1% Total $ 5,723 $ 4,836

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2018
Long-term Debt, Unclassified [Abstract]
Long-Term Debt	LONG-TERM DEBT During 2018 , we issued $6.84 billion of medium-term notes, of which $3.79 billion were at fixed interest rates and $3.05 billion were at floating interest rates, primarily indexed to LIBOR. At December 31, 2018 , the outstanding medium-term notes had remaining maturities ranging up to 9 years . Debt issuance costs are capitalized and amortized to Interest expense using the effective yield method over the term of the debt issuance. The balance of our medium-term notes contains unamortized fair value adjustments for debt in a fair value hedge relationship. Long-term debt outstanding as of December 31, was comprised of the following: (Millions of dollars) 2018 2017 Balance Avg. Rate Balance Avg. Rate Medium-term notes $ 22,226 2.6% $ 21,362 2.5% Unamortized discount and debt issuance costs (57 ) (59 ) Medium-term notes, net 22,169 21,303 Bank borrowings 646 5.8% 803 5.0% Total $ 22,815 $ 22,106 Long-term debt outstanding as of December 31, 2018 , matures as follows: ( Millions of dollars) 2019 $ 5,820 2020 6,407 2021 4,884 2022 2,053 2023 2,158 Thereafter 1,493 Total $ 22,815 The above table includes $238 million of medium-term notes that could be called by us at some point in the future at par.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	12 Months Ended
	Dec. 31, 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 December 31, 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 December 31, Consolidated Statements of Financial Position Location 2018 2017 Designated derivatives Interest rate contracts Other assets $ 4 $ 3 Interest rate contracts Accrued expenses (40 ) (2 ) Cross currency contracts Other assets 88 7 Cross currency contracts Accrued expenses (9 ) (57 ) $ 43 $ (49 ) Undesignated derivatives Foreign exchange contracts Other assets $ 15 $ 12 Foreign exchange contracts Accrued expenses (12 ) (9 ) Cross currency contracts Other assets 5 — Cross currency contracts Accrued expenses (2 ) — $ 6 $ 3 The total notional amount of our derivative instruments was $10.21 billion and $3.69 billion as of December 31, 2018 and 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) Year Ended December 31, 2018 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ — $ — Year Ended December 31, 2017 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (2 ) $ 2 Year Ended December 31, 2016 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (12 ) $ 11 Cash Flow Hedges (Millions of dollars) Year Ended December 31, 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 $ (38 ) Interest expense $ — $ — Cross currency contracts 165 Other income (expense) 148 — Interest expense 19 — $ 127 $ 167 $ — Year Ended December 31, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 3 $ — Cross currency contracts (77 ) Other income (expense) (81 ) — Interest expense 6 — $ (77 ) $ (72 ) $ — Year Ended December 31, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 8 Interest expense $ (3 ) $ — Cross currency contracts 15 Other income (expense) 28 — $ 23 $ 25 $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows for the years ended December 31: (Millions of dollars) Classification 2018 2017 2016 Foreign exchange contracts Other income (expense) $ 16 $ 14 $ (10 ) Cross currency contracts Other income (expense) 3 (5 ) (14 ) $ 19 $ 9 $ (24 ) We enter into International Swaps and Derivatives Association (ISDA) master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or us under the master netting agreements. As of December 31, 2018 , 2017 and 2016 , no cash collateral was received or pledged under the master netting agreements. The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event as of December 31, was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) 2018 2017 Derivative Assets Gross Amount of Recognized Assets $ 112 $ 22 Gross Amounts Offset — — Net Amount of Assets (1) 112 22 Gross Amounts Not Offset (34 ) (10 ) Net Amount $ 78 $ 12 Derivative Liabilities Gross Amount of Recognized Liabilities $ (63 ) $ (68 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (63 ) (68 ) Gross Amounts Not Offset 34 10 Net Amount $ (29 ) $ (58 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	12 Months Ended
	Dec. 31, 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 Total Balance at December 31, 2015 $ (897 ) $ — $ (897 ) Other comprehensive income/(loss) before reclassifications (97 ) 15 (82 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (16 ) (16 ) Other comprehensive income/(loss) (97 ) (1 ) (98 ) Balance at December 31, 2016 $ (994 ) $ (1 ) $ (995 ) Other comprehensive income/(loss) before reclassifications 407 (49 ) 358 Amounts reclassified from accumulated other comprehensive (income)/loss — 45 45 Other comprehensive income/(loss) 407 (4 ) 403 Balance at December 31, 2017 $ (587 ) $ (5 ) $ (592 ) Other comprehensive income/(loss) before reclassifications (302 ) 98 (204 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (129 ) (129 ) Other comprehensive income/(loss) (302 ) (31 ) (333 ) Balance at December 31, 2018 $ (889 ) $ (36 ) $ (925 ) The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit during the years ended December 31, 2018 , 2017 and 2016 was as follows: (Millions of dollars) Derivative financial instruments Classification of income (expense) 2018 2017 2016 Cross currency contracts Other income (expense) $ 148 $ (81 ) $ 28 Cross currency contracts Interest expense 19 6 — Interest rate contracts Interest expense — 3 (3 ) Reclassifications before tax 167 (72 ) 25 Tax (provision) benefit (38 ) 27 (9 ) Total reclassifications from Accumulated other comprehensive income/(loss) $ 129 $ (45 ) $ 16

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	COMMITMENTS AND CONTINGENT LIABILITIES We provide loan guarantees to third-party lenders for financing associated with machinery purchased by customers. These guarantees have varying terms and are secured by the machinery being financed. We also provide residual value guarantees to third-party lenders associated with machinery leased to customers. These guarantees have varying terms. In addition, we participate in standby letters of credit issued to third parties on behalf of our customers. These standby letters of credit have varying terms and beneficiaries and are secured by customer assets. No significant loss has been experienced or is anticipated under any of these guarantees. At December 31, 2018 and 2017 , the related recorded liability was less than $1 million . The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was $97 million and $91 million , at December 31, 2018 and 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 December 31, 2018 and 2017 , the SPC’s assets of $1.15 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 $1.15 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. We are party to agreements in the normal course of business with selected customers and Caterpillar dealers in which we commit to provide a set dollar amount of financing on a pre-approved basis. We also provide lines of credit to certain customers and Caterpillar dealers, of which a portion remains unused as of the end of the period. Commitments and lines of credit generally have fixed expiration dates or other termination clauses. It has been our experience that not all commitments and lines of credit will be used. Management applies the same credit policies when making commitments and granting lines of credit as it does for any other financing. We do not require collateral for these commitments/lines, but if credit is extended, collateral may be required upon funding. As of December 31, 2018 and 2017 , the amount of the unused commitments and lines of credit for dealers was $12.00 billion and $11.21 billion , respectively. As of December 31, 2018 and 2017 , the amount of the unused commitments for customers was $815 million and $715 million , respectively. We are involved in unresolved legal actions that arise in the normal course of business. Although it is not possible to predict with certainty the outcome of our unresolved legal actions, we believe that these unresolved legal actions will neither individually nor in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES We completed our accounting for the income tax effects of U.S. tax reform legislation with a resulting 2018 measurement period adjustment of $12 million that increased the provisionally estimated net benefit of $151 million recognized during the fourth quarter of 2017. We recorded a $7 million benefit, resulting from the 2017 tax year return to provision adjustments, which revised the estimated impact of the write-down of U.S. net deferred tax liabilities to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent . We recorded a $5 million benefit to revise the estimated cost of a mandatory deemed repatriation of non-U.S. earnings. Our estimates of the impact of U.S. tax reform are based on enacted law and related guidance received as of December 31, 2018. On January 15, 2019, the U.S. Treasury issued final regulations providing additional guidance related to the calculation of the mandatory deemed repatriation of non-U.S. earnings. We are currently evaluating the impact of these regulations. As a result of U.S. tax reform legislation, distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. We have not recorded a deferred tax liability for withholding taxes in non-U.S. jurisdictions where earnings are considered indefinitely reinvested. If management intentions or U.S. tax law changes in the future, there could be an impact on the provision for income taxes to record an incremental tax liability in the period the change occurs. A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: (Millions of dollars) 2018 2017 2016 Taxes computed at U.S. statutory rates $ 91 21.0 % $ 206 35.0 % $ 196 35.0 % (Decreases) increases in taxes resulting from: State Income Tax, net of Federal Tax 1 0.2 % 2 0.3 % 2 0.4 % Subsidiaries' results subject to tax rates other than U.S. statutory rates 28 6.5 % (31 ) (5.3 )% (36 ) (6.5 )% Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (1) — — % (16 ) (2.7 )% 2 0.3 % Foreign currency translation taxed at non-U.S. subsidiaries (1 ) (0.2 )% (12 ) (2.0 )% 13 2.3 % U.S. deferred tax rate change (7 ) (1.6 )% (334 ) (56.6 )% — — % Mandatory deemed repatriation of non-U.S. earnings (5 ) (1.2 )% 183 31.0 % — — % Prior year tax adjustments 11 2.5 % — — % — — % Valuation allowances (7 ) (1.6 )% — — % — — % Other, net (3 ) (0.7 )% (2 ) (0.4 )% (6 ) (1.1 )% Provision (benefit) for income taxes $ 108 24.9 % $ (4 ) (0.7 )% $ 171 30.4 % (1) Excludes provisionally estimated net benefit from 2017 U.S. tax reform. The provision for income taxes for 2018 includes a prior year net tax charge of $11 million to reduce non-U.S. deferred tax assets in certain jurisdictions to balances supporting the expected reversal of temporary differences between tax and U.S. GAAP balances. The provision for income taxes for 2018 also includes a decrease in the valuation allowance for non-U.S. deferred tax assets due to improved U.S. GAAP profits expected to recur in certain jurisdictions, resulting in a $7 million non-cash benefit. The components of Profit before income taxes for the years ended December 31, were as follows: (Millions of dollars) 2018 2017 2016 U.S. $ 213 $ 285 $ 249 Non-U.S. 220 305 312 Total $ 433 $ 590 $ 561 Profit before income taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above. The components of the Provision (benefit) for income taxes were as follows for the years ended December 31: (Millions of dollars) 2018 2017 2016 Current income tax provision (benefit): U.S. $ (46 ) $ 157 $ (18 ) Non-U.S. 112 102 111 State (U.S.) 1 1 — 67 260 93 Deferred income tax provision (benefit): U.S. 67 (239 ) 90 Non-U.S. (26 ) (28 ) (15 ) State (U.S.) — 3 3 41 (264 ) 78 Total Provision (benefit) for income taxes $ 108 $ (4 ) $ 171 Current income tax provision is the amount of income taxes reported or expected to be reported on our income tax returns. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year. Accounting for income taxes under generally accepted accounting principles in the United States of America requires individual tax-paying entities of the Company to offset deferred income tax assets and liabilities within each particular tax jurisdiction and present them as a single amount in the Consolidated Statements of Financial Position. Amounts in different tax jurisdictions cannot be offset against each other. The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: (Millions of dollars) 2018 2017 Assets: Other assets $ 108 $ 101 Liabilities: Other liabilities (653 ) (579 ) Deferred income taxes, net $ (545 ) $ (478 ) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) 2018 2017 Deferred income tax assets: Allowance for credit losses $ 111 $ 96 Tax carryforwards 44 43 155 139 Deferred income tax liabilities (primarily lease basis differences) (508 ) (441 ) Valuation allowance for deferred income tax assets (2 ) (11 ) Deferred income tax on translation adjustment (190 ) (165 ) Deferred income taxes, net $ (545 ) $ (478 ) As of December 31, 2018 , amounts and expiration dates of net operating loss (NOL) carryforwards in various U.S. state taxing jurisdictions were: (Millions of dollars) 2019 2020 2021 2022 2023-2038 Unlimited Total $ 4 $ — $ 5 $ 5 $ 148 $ 2 $ 164 The gross deferred income tax asset associated with these NOL carryforwards is $13 million as of December 31, 2018 , partially offset by a valuation allowance of $2 million . In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis. At December 31, 2018 , approximately $12 million of U.S. foreign tax credits were available for carryforward. These credits expire in 2028. As of December 31, 2018 , amounts and expiration dates of NOL carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2019 2020 2021 2022 2023-2038 Unlimited Total $ — $ — $ 17 $ 3 $ 15 $ 105 $ 140 Valuation allowances of less than $1 million have been recorded at certain non-U.S. subsidiaries that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets. A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: (Millions of dollars) 2018 2017 2016 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ — $ 4 $ — Additions for income tax positions related to current year 119 — 1 Additions for income tax positions related to prior year — — 3 Reductions for income tax positions related to settlements (2) — (4 ) — Balance at end of year $ 119 $ — $ 4 Amount that, if recognized, would impact the effective tax rate $ — $ — $ — (1) Foreign currency translation amounts are included within each line as applicable. (2) Includes cash payment or other reduction of assets to settle liability. We classify interest and penalties on income taxes as a component of the provision for income taxes. During the years ended December 31, 2018 , 2017 and 2016 , we recognized a benefit of $1 million , an expense of $2 million and a benefit of less than $1 million in interest and penalties, respectively. As of December 31, 2018 and 2017 , the total amount of accrued interest and penalties was less than $1 million . On January 31, 2018, Caterpillar received a Revenue Agent's Report (RAR) from the IRS indicating the end of field examination of our U.S. tax returns for 2010 to 2012. Tax years prior to 2007 are generally no longer subject to U.S. tax assessment. In our major non-U.S. jurisdictions, tax years are typically subject to examination for three to seven years. Due to the uncertainty related to the timing and potential outcome of audits, we cannot estimate the range of reasonably possible change in unrecognized tax benefits in the next 12 months.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 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 $49 million as of December 31, 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 $469 million and $341 million as of December 31, 2018 and 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) 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 766 $ 766 $ 708 $ 708 1 Restricted cash and cash equivalents (2) $ 7 $ 7 $ 24 $ 24 1 Finance receivables, net (excluding finance leases (1) ) $ 20,451 $ 20,510 $ 20,063 $ 20,019 3 Note 2 Interest rate contracts: In a receivable position $ 4 $ 4 $ 3 $ 3 2 Note 9 In a payable position $ (40 ) $ (40 ) $ (2 ) $ (2 ) 2 Note 9 Cross currency contracts In a receivable position $ 93 $ 93 $ 7 $ 7 2 Note 9 In a payable position $ (11 ) $ (11 ) $ (57 ) $ (57 ) 2 Note 9 Foreign exchange contracts: In a receivable position $ 15 $ 15 $ 12 $ 12 2 Note 9 In a payable position $ (12 ) $ (12 ) $ (9 ) $ (9 ) 2 Note 9 Short-term borrowings $ (5,723 ) $ (5,723 ) $ (4,836 ) $ (4,836 ) 1 Note 7 Long-term debt $ (22,815 ) $ (22,684 ) $ (22,106 ) $ (22,230 ) 2 Note 8 Guarantees $ — $ — $ — $ — 3 Note 11 (1) As of December 31, 2018 and 2017 , represents finance leases with a net carrying value of $7.47 billion and $7.06 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Transactions with Related Parti

Transactions with Related Parties	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Transactions with Related Parties	TRANSACTIONS WITH RELATED PARTIES We have a Support Agreement with Caterpillar, which provides that Caterpillar will (1) remain, directly or indirectly, our sole owner; (2) cause us to maintain a tangible net worth of at least $20 million and (3) ensure that we maintain a ratio of profit before income taxes and interest expense to interest expense (as defined by the Support Agreement) of not less than 1.15 to 1, calculated on an annual basis. Although this agreement can be modified or terminated by either party, any termination or any modification which would adversely affect holders of our debt requires the consent of holders of 66-2/3 percent in principal amount of outstanding debt of each series so affected. Any modification or termination which would adversely affect the lenders under the Credit Facility requires their consent. Caterpillar's obligation under this agreement is not directly enforceable by any of our creditors and does not constitute a guarantee of any of our obligations. Cash dividends of $400 million , $725 million and $275 million were paid to Caterpillar in 2018 , 2017 and 2016 , respectively. We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.75 billion from Caterpillar, and Caterpillar may borrow up to $2.14 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. We extended a $2 billion committed credit facility to Caterpillar, which expires in February 2019. Under this agreement, we receive a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. Information concerning these agreements was as follows: (Millions of dollars) 2018 2017 2016 Payable to Caterpillar - borrowings as of December 31, $ 1,518 $ 1,638 $ 1,637 Payable to Caterpillar - other as of December 31, $ 83 $ 85 $ 49 Notes receivable as of December 31, $ 662 $ 559 $ 530 Other receivables from Caterpillar as of December 31, (2) $ 33 $ 31 $ 21 Interest expense $ 35 $ 21 $ 15 Interest income on Notes Receivable with Caterpillar (1) $ 30 $ 74 $ 30 Fees on committed credit facility extended to Caterpillar (1) $ 40 $ 40 $ 40 (1) Included in Other revenues, net in the Consolidated Statements of Profit. (2) Included in Other assets in the Consolidated Statements of Financial Position. We have agreements with Caterpillar to purchase certain trade receivables at a discount. Information pertaining to these purchases was as follows: (Millions of dollars) 2018 2017 2016 Purchases made $ 42,961 $ 34,667 $ 28,631 Discounts earned $ 375 $ 253 $ 207 Purchased Receivables as of December 31, $ 4,691 $ 3,461 $ 2,431 We participate in certain marketing programs offered in conjunction with Caterpillar that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. During 2018 , 2017 and 2016 , relative to such programs, we received $335 million , $277 million and $273 million , respectively. We have finance receivables and equipment on operating leases, net of depreciation, with Caterpillar of $56 million and $17 million as of December 31, 2018 and 2017 , respectively. For the years ended December 31, 2018 , 2017 and 2016 , we recognized revenues of $9 million , $4 million and $8 million , respectively, related to these finance receivables and operating leases. For the years ended December 31, 2018 , 2017 and 2016 , we recognized depreciation related to these operating leases of $5 million , $3 million and $7 million , respectively. At December 31, 2018 and 2017 , $450 million and $481 million , respectively, of our portfolio is subject to guarantees by Caterpillar and affiliates. We participate in various benefit plans, which are administered by Caterpillar. These plans include employee medical plans and postretirement benefit plans. We reimburse Caterpillar for these charges. During 2018 , 2017 and 2016 , these charges amounted to $34 million , $31 million and $29 million , respectively. Included in these charges are contributions to defined benefit plans in the amount of $9 million , $8 million and $7 million in 2018 , 2017 and 2016 , respectively. These contributions are related to our participation in the following defined benefit plans that are administered by Caterpillar: the Caterpillar Inc. Retirement Income Plan, the Caterpillar Inc. Supplemental Retirement Plan and the Caterpillar Inc. Retiree Benefit Program. The total cost of the defined benefit plans is determined by actuarial valuation and we receive an allocation of the service and prior service cost based on headcount. We participate in the Caterpillar stock incentive plans. In 2018 , 2017 and 2016 , Caterpillar allocated to us $8 million , $8 million and $9 million , respectively, in expenses related to stock based compensation. Further information about these plans is available in Caterpillar’s 2018 Annual Report on Form 10-K filed separately with the Securities and Exchange Commission. Caterpillar provides operational and administrative support, which is integral to the conduct of our business. In 2018 , 2017 and 2016 , these operational and support charges for which we reimburse Caterpillar amounted to $35 million , $30 million and $28 million , respectively. In addition, we provide administrative support services to certain Caterpillar subsidiaries. Caterpillar reimburses us for these charges. During 2018 , 2017 and 2016 , these charges amounted to $11 million , $9 million and $9 million, respectively. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year.

Leases

Leases	12 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Leases	LEASES We lease our offices and other property through operating leases. Rental expense is charged to operations as incurred. For 2018 , 2017 and 2016 , total rental expense for operating leases was $11 million , $16 million and $17 million , respectively. At December 31, 2018 , minimum payments for operating leases having initial non-cancelable terms in excess of one year were as follows: (Millions of dollars) 2019 $ 8 2020 6 2021 4 2022 2 2023 2 Thereafter 2 Total $ 24

Segment and Geographic Informat

Segment and Geographic Information	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Segment and Geographic Information	SEGMENT AND GEOGRAPHIC INFORMATION A. Basis for Segment Information We report information internally for operating segments based on management responsibility. Our operating segments offer financing to customers and dealers for the purchase and lease of Caterpillar and other equipment, as well as financing for Caterpillar sales to dealers. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans within each of the respective segments. B. Description of Segments We have 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, Southeast Asia and India. • 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 11 for additional information) and other miscellaneous items. • Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting. • Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows: ◦ Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities. ◦ The impact of differences between the actual leverage and the segment leverage ratios. ◦ Interest expense includes realized forward points on foreign currency forward contracts. ◦ The net gain or loss from interest rate derivatives. Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2018 Capital expenditures North America $ 1,533 $ 434 $ 363 $ 572 $ 42 $ 15,632 $ 1,108 Europe 279 14 50 71 58 4,862 108 Asia/Pacific 357 168 111 18 (5 ) 4,639 14 Latin America 254 (3 ) 101 27 73 2,972 32 Caterpillar Power Finance 110 (143 ) 55 2 171 2,259 — Mining 256 34 60 128 8 2,234 192 Total Segments 2,789 504 740 818 347 32,598 1,454 Unallocated 92 (267 ) 248 1 — 1,957 104 Timing (34 ) (1 ) — — 7 55 1 Methodology — 197 (231 ) — — (159 ) — Inter-segment Eliminations (1) — — — — — (270 ) — Total $ 2,847 $ 433 $ 757 $ 819 $ 354 $ 34,181 $ 1,559 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2017 Capital expenditures North America $ 1,337 $ 353 $ 306 $ 520 $ 36 $ 14,790 $ 992 Europe 307 116 37 80 4 4,332 103 Asia/Pacific 267 99 87 25 (5 ) 4,214 6 Latin America 292 5 121 38 55 3,407 54 Caterpillar Power Finance 155 42 44 3 39 2,746 — Mining 272 49 50 142 8 2,399 210 Total Segments 2,630 664 645 808 137 31,888 1,365 Unallocated 90 (220 ) 193 — — 1,719 8 Timing (31 ) (6 ) — 2 (5 ) 53 — Methodology — 152 (171 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 2,689 $ 590 $ 667 $ 810 $ 132 $ 33,160 $ 1,373 2016 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2016 Capital expenditures North America $ 1,230 $ 326 $ 287 $ 477 $ 28 $ 14,925 $ 1,174 Europe 268 86 33 83 — 3,834 147 Asia/Pacific 254 82 81 29 3 3,620 74 Latin America 320 11 118 57 69 3,861 26 Caterpillar Power Finance 167 66 38 4 31 3,409 — Mining 308 49 47 188 7 2,734 206 Total Segments 2,547 620 604 838 138 32,383 1,627 Unallocated 80 (138 ) 116 — — 1,688 6 Timing (32 ) (12 ) — 3 (3 ) 27 3 Methodology — 91 (109 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 2,595 $ 561 $ 611 $ 841 $ 135 $ 33,615 $ 1,636 (1) Elimination is primarily related to intercompany loans. Geographic information: (Millions of dollars) 2018 2017 2016 Revenues Inside U.S. $ 1,684 $ 1,551 $ 1,397 Inside Canada 163 157 171 Inside Australia 134 139 176 All other 866 842 851 Total $ 2,847 $ 2,689 $ 2,595 Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), Net 2018 2017 Inside U.S. $ 2,775 $ 2,554 Inside Canada 402 413 All other 513 663 Total $ 3,690 $ 3,630

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Financial Data (Unaudited)	SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Millions of dollars) 2018 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 690 $ 723 $ 735 $ 699 Profit before income taxes $ 124 $ 100 $ 163 $ 46 Profit $ 91 $ 71 $ 125 $ 18 2017 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 662 $ 676 $ 673 $ 678 Profit before income taxes $ 167 $ 164 $ 126 $ 133 Profit $ 115 $ 114 $ 86 $ 271

Critical Accounting Policies (P

Critical Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Residual values for leased assets	Residual values for leased assets Lease residual values are an estimate of the market value of leased equipment at the end of the lease term and are based on an analysis of historical wholesale market sales prices, projected forward on a level trend line without consideration for inflation or possible future pricing action. At the inception of the lease, residual values are estimated with consideration of the following critical factors: market size and demand, any known significant market/product trends, total expected hours of usage, machine configuration, application, location, model changes, quantities, past remarketing experience, third-party residual guarantees and contractual customer purchase options. Many of these factors are gathered in an application survey that is completed prior to quotation. The lease agreement also clearly defines applicable return conditions and remedies for non-compliance, to ensure that the leased equipment will be in good operating condition upon return. Model changes and updates, as well as market strength and product acceptance, are monitored and adjustments are made to residual values in accordance with the significance of any such changes. Remarketing sales staff works closely with customers and dealers to manage the sale of lease returns and the recovery of residual exposure. During the term of the equipment on operating leases, we evaluate our depreciation on a regular basis taking into consideration expected residual values at lease termination. Adjustments to depreciation expense reflecting revised estimates of expected residual values at the end of the lease terms are recorded prospectively on a straight-line basis. For finance leases, residual value adjustments are recognized through a reduction of finance revenue. We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, the fair value of the equipment on operating leases is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value. At December 31, 2018 , the aggregate residual value of equipment on operating leases was $2.21 billion. Without consideration of other factors such as third-party residual guarantees or contractual customer purchase options, a 10 percent non-temporary decrease in the market value of our equipment subject to operating leases would reduce residual value estimates and result in recognition of approximately $80 million of additional annual depreciation expense.
Allowance for credit losses	Allowance for credit losses The allowance for credit losses is an estimate of the losses inherent in our finance receivable portfolio and includes consideration of accounts that have been individually identified as impaired, as well as pools of finance receivables where it is probable that certain receivables in the pool are impaired but the individual accounts cannot yet be identified. In identifying and measuring impairment, management takes into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions. Accounts are identified for individual review based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated and determined to be impaired is based on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. The allowance for credit losses attributable to the remaining accounts not yet individually identified as impaired is estimated based on loss forecast models utilizing probabilities of default, our estimate of the loss emergence period and the estimated loss given default. In addition, qualitative factors not able to be fully captured in our loss forecast models including industry trends, macroeconomic factors and model imprecision are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. While management believes it has exercised prudent judgment and applied reasonable assumptions, there can be no assurance that in the future, changes in economic conditions or other factors would not cause changes in the financial health of our customers. If the financial health of our customers deteriorates, the timing and level of payments received could be impacted and therefore, could result in a change to our estimated losses.
Income taxes	Income taxes We are subject to the income tax laws of the many jurisdictions in which we operate. These tax laws are complex, and the manner in which they apply to our facts is sometimes open to interpretation. In establishing the provision for income taxes, we must make judgments about the application of these inherently complex tax laws. Our income tax positions and analysis are based on currently enacted tax law. Future changes in tax law or related interpretations could significantly impact the provision for income taxes, the amount of taxes payable, and the deferred tax asset and liability balances. Despite our belief that our tax return positions are consistent with applicable tax laws, we believe that taxing authorities could challenge certain positions. Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment reached through negotiations or litigation. We record tax benefits for uncertain tax positions based upon management's evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more likely than not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more likely than not of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Significant judgment is required in making these determinations and adjustments to unrecognized tax benefits may be necessary to reflect actual taxes payable upon settlement. Adjustments related to positions impacting the effective tax rate affect the provision for income taxes. Adjustments related to positions impacting the timing of deductions impact deferred tax assets and liabilities. Deferred tax assets generally represent tax benefits for tax deductions or credits available in future tax returns. Certain estimates and assumptions are required to determine whether it is more likely than not that all or some portion of the benefit of a deferred tax asset will not be realized. In making this assessment, management analyzes the trend of U.S. GAAP earnings and estimates the impact of future taxable income, reversing temporary differences and available prudent and feasible tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate realizability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in the provision for income taxes. As a result of U.S. tax reform legislation, distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. We have not recorded a deferred tax liability for withholding taxes in non-U.S. jurisdictions where earnings are considered indefinitely reinvested. If management intentions or U.S. tax law changes in the future, there could be an impact on the provision for income taxes to record an incremental tax liability in the period the change occurs. A deferred tax asset is recognized only if we have definite plans to generate a U.S. tax benefit by repatriating earnings in the foreseeable future. Income taxes are based on the statutory tax rate of the jurisdiction in which earnings are subject to taxation. That statutory rate may differ from the statutory rate of the jurisdiction in which that entity is incorporated. Taxes are paid in the jurisdictions where earnings are subject to taxation. The effective tax rate differs from the U.S. statutory rate in part due to indefinitely reinvested profits of non-U.S. subsidiaries being subject to statutory tax rates which differ from the U.S. rate of 21 percent.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs) in which Cat Financial is the primary beneficiary. We consolidate all VIEs where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 11 for more information. We have customers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. Certain amounts for prior years have been reclassified to conform with current-year financial statement presentation.
Revenue Recognition	Revenue Recognition Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of purchased receivables discount and certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and operating lease revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed, and previously suspended income is recognized, when the account becomes current and collection of remaining amounts is considered probable. We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate. Other revenue includes: (1) late charges, (2) fee revenue, primarily commitment fees and fees on committed lines of credit or letters of credit, (3) gains and losses on sales of returned or repossessed equipment, (4) impairments on returned or repossessed equipment held for sale, (5) gains and losses on loan and lease sales and (6) other miscellaneous revenues. Other revenue items are recognized in accordance with relevant authoritative pronouncements.
Depreciation	Depreciation Depreciation for equipment on operating leases is recognized using the straight-line method over the lease term, typically one to seven years. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term.
Derivative Financial Instruments	Derivative Financial Instruments Our earnings and cash 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. All derivatives are recorded at fair value. See Note 9 for additional information.
Foreign Currency Translation	Foreign Currency Translation The functional currency for most of our subsidiaries is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in the Consolidated Statements of Profit. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income/(loss) in the Consolidated Statements of Financial Position.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates.

Finance Receivables (Tables)

Finance Receivables (Tables)	12 Months Ended
	Dec. 31, 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 as of December 31, was as follows: (Millions of dollars) 2018 2017 Retail loans, net $ 15,509 $ 16,142 Retail leases, net 7,499 7,111 Caterpillar purchased receivables, net 4,691 3,461 Wholesale loans, net 626 691 Wholesale leases, net 109 86 Recorded investment in finance receivables 28,434 27,491 Less: Allowance for credit losses (511 ) (365 ) Total finance receivables, net $ 27,923 $ 27,126
Maturities of finance receivables	Maturities of our finance receivables, as of December 31, 2018 , reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail loans Retail leases Caterpillar purchased receivables Wholesale loans Wholesale leases Total 2019 $ 5,947 $ 3,024 $ 4,745 $ 386 $ 29 $ 14,131 2020 3,851 2,055 — 120 21 6,047 2021 2,629 1,092 — 88 12 3,821 2022 1,790 465 — 31 5 2,291 2023 853 171 — 1 2 1,027 Thereafter 699 62 — — 2 763 Total 15,769 6,869 4,745 626 71 28,080 Guaranteed residual value — 416 — — 42 458 Unguaranteed residual value — 854 — — 3 857 Unearned income (260 ) (640 ) (54 ) — (7 ) (961 ) Total $ 15,509 $ 7,499 $ 4,691 $ 626 $ 109 $ 28,434
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2018 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 353 $ 9 $ 3 $ 365 Receivables written off (235 ) — — (235 ) Recoveries on receivables previously written off 46 — — 46 Provision for credit losses 337 12 1 350 Adjustment due to sale of receivables (7 ) — — (7 ) Foreign currency translation adjustment (8 ) — — (8 ) Balance at end of year $ 486 $ 21 $ 4 $ 511 Individually evaluated for impairment $ 288 $ 14 $ — $ 302 Collectively evaluated for impairment 198 7 4 209 Ending Balance $ 486 $ 21 $ 4 $ 511 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 859 $ 78 $ — $ 937 Collectively evaluated for impairment 18,724 4,082 4,691 27,497 Ending Balance $ 19,583 $ 4,160 $ 4,691 $ 28,434 (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) December 31, 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 $ 65 $ 18 $ 84 $ 167 $ 7,883 $ 8,050 $ 14 Europe 19 9 153 181 2,850 3,031 5 Asia/Pacific 25 9 8 42 2,923 2,965 5 Mining 28 1 9 38 1,642 1,680 — Latin America 38 29 71 138 1,421 1,559 — Caterpillar Power Finance 10 1 384 395 1,903 2,298 — Dealer North America — — — — 2,210 2,210 — Europe — — — — 619 619 — Asia/Pacific — — — — 514 514 — Mining — — — — 4 4 — Latin America — — 78 78 731 809 — Caterpillar Power Finance — — — — 4 4 — Caterpillar Purchased Receivables (1) North America 22 12 18 52 2,982 3,034 Europe 1 — 1 2 546 548 Asia/Pacific 5 1 1 7 756 763 Mining — — — — — — Latin America — — — — 338 338 Caterpillar Power Finance — — — — 8 8 Total $ 213 $ 80 $ 807 $ 1,100 $ 27,334 $ 28,434 $ 24 (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	(Millions of dollars) As of December 31, 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 $ 10 $ 10 $ — $ 19 $ 19 $ — Europe 1 1 — 45 45 — Asia/Pacific 1 1 — 34 33 — Mining 33 33 — 121 121 — Latin America 29 29 — 45 45 — Caterpillar Power Finance 69 83 — 160 172 — Total $ 143 $ 157 $ — $ 424 $ 435 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 40 $ 41 $ 14 $ 44 $ 43 $ 17 Europe 92 92 57 9 8 5 Asia/Pacific 4 4 2 8 8 2 Mining 56 55 26 — — — Latin America 75 75 25 95 106 42 Caterpillar Power Finance 449 455 164 362 365 83 Total $ 716 $ 722 $ 288 $ 518 $ 530 $ 149 Total Impaired Finance Receivables North America $ 50 $ 51 $ 14 $ 63 $ 62 $ 17 Europe 93 93 57 54 53 5 Asia/Pacific 5 5 2 42 41 2 Mining 89 88 26 121 121 — Latin America 104 104 25 140 151 42 Caterpillar Power Finance 518 538 164 522 537 83 Total $ 859 $ 879 $ 288 $ 942 $ 965 $ 149 (Millions of dollars) Year Ended Year Ended Year Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 16 $ 1 $ 13 $ 1 $ 18 $ 1 Europe 14 — 48 1 46 1 Asia/Pacific 28 3 24 2 2 — Mining 57 2 126 7 98 4 Latin America 38 2 64 3 47 1 Caterpillar Power Finance 130 7 221 9 270 11 Total $ 283 $ 15 $ 496 $ 23 $ 481 $ 18 Impaired Finance Receivables With An Allowance Recorded North America $ 49 $ 2 $ 49 $ 1 $ 34 $ — Europe 53 2 6 — 11 1 Asia/Pacific 5 — 31 2 37 3 Mining 46 3 — — 13 — Latin America 67 3 99 4 66 2 Caterpillar Power Finance 378 12 180 6 50 1 Total $ 598 $ 22 $ 365 $ 13 $ 211 $ 7 Total Impaired Finance Receivables North America $ 65 $ 3 $ 62 $ 2 $ 52 $ 1 Europe 67 2 54 1 57 2 Asia/Pacific 33 3 55 4 39 3 Mining 103 5 126 7 111 4 Latin America 105 5 163 7 113 3 Caterpillar Power Finance 508 19 401 15 320 12 Total $ 881 $ 37 $ 861 $ 36 $ 692 $ 25
Recorded investment in Customer finance receivables on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status as of December 31, was as follows: (Millions of dollars) 2018 2017 North America $ 77 $ 38 Europe 154 37 Asia/Pacific 4 10 Mining 50 63 Latin America 106 192 Caterpillar Power Finance 416 343 Total $ 807 $ 683
Finance receivables modified as TDRs	Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2018 , 2017 and 2016 , were as follows: (Dollars in millions) Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 38 $ 21 $ 21 Europe — — — Asia/Pacific — — — Mining 1 29 29 Latin America 1 3 3 Caterpillar Power Finance 12 133 99 Total 52 $ 186 $ 152 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 43 $ 34 $ 35 Europe 4 1 1 Asia/Pacific 10 39 31 Mining 2 57 56 Latin America 17 26 27 Caterpillar Power Finance (1) 68 422 407 Total 144 $ 579 $ 557 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 25 $ 25 $ 25 Europe 43 12 9 Asia/Pacific 31 29 28 Mining 4 74 66 Latin America (2) 437 118 82 Caterpillar Power Finance 34 196 177 Total 574 $ 454 $ 387 (1) In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers. (2) In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million were related to four customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2018 , 2017 and 2016 , which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Year Ended Year Ended Year Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 10 $ 10 4 $ 3 5 $ 2 Europe — — 1 — 5 2 Asia/Pacific — — 4 1 1 — Latin America (1) 3 1 243 17 4 1 Caterpillar Power Finance 3 33 — — — — Total 16 $ 44 252 $ 21 15 $ 5 (1) In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.

Equipment on Operating Leases (

Equipment on Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Equipment leased to others	Components of equipment on operating leases, less accumulated depreciation as of December 31, were as follows: (Millions of dollars) 2018 2017 Equipment on operating leases, at cost $ 5,201 $ 5,204 Less: Accumulated depreciation (1,639 ) (1,636 ) Equipment on operating leases, net $ 3,562 $ 3,568
Schedule of minimum rental payments to be received for equipment leased to others	At December 31, 2018 , scheduled minimum rental payments for operating leases were as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 808 $ 503 $ 257 $ 115 $ 41 $ 15 $ 1,739

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2018
Other Assets [Abstract]
Schedule of other assets	The components of other assets as of December 31, were as follows: (Millions of dollars) 2018 2017 Customer and other miscellaneous receivables $ 480 $ 457 Collateral held for resale, at net realizable value 316 432 Deferred and refundable income taxes 191 174 Property and equipment, net 128 62 Other (1) 153 74 Total other assets $ 1,268 $ 1,199 (1) Includes $33 million and $31 million of other receivables from Caterpillar as of December 31, 2018 and 2017, respectively.

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2018
Short-term Debt [Abstract]
Short-term borrowings	Short-term borrowings outstanding as of December 31, were comprised of the following: (Millions of dollars) 2018 2017 Balance Avg. Rate Balance Avg. Rate Commercial paper, net $ 4,759 2.0% $ 3,680 1.1% Bank borrowings 526 5.3% 675 5.2% Variable denomination floating rate demand notes 438 2.2% 481 1.1% Total $ 5,723 $ 4,836

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2018
Long-term Debt, Unclassified [Abstract]
Long-term debt	Long-term debt outstanding as of December 31, was comprised of the following: (Millions of dollars) 2018 2017 Balance Avg. Rate Balance Avg. Rate Medium-term notes $ 22,226 2.6% $ 21,362 2.5% Unamortized discount and debt issuance costs (57 ) (59 ) Medium-term notes, net 22,169 21,303 Bank borrowings 646 5.8% 803 5.0% Total $ 22,815 $ 22,106
Aggregate amounts of maturities of long-term debt	Long-term debt outstanding as of December 31, 2018 , matures as follows: ( Millions of dollars) 2019 $ 5,820 2020 6,407 2021 4,884 2022 2,053 2023 2,158 Thereafter 1,493 Total $ 22,815

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)	12 Months Ended
	Dec. 31, 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 December 31, Consolidated Statements of Financial Position Location 2018 2017 Designated derivatives Interest rate contracts Other assets $ 4 $ 3 Interest rate contracts Accrued expenses (40 ) (2 ) Cross currency contracts Other assets 88 7 Cross currency contracts Accrued expenses (9 ) (57 ) $ 43 $ (49 ) Undesignated derivatives Foreign exchange contracts Other assets $ 15 $ 12 Foreign exchange contracts Accrued expenses (12 ) (9 ) Cross currency contracts Other assets 5 — Cross currency contracts Accrued expenses (2 ) — $ 6 $ 3
Schedule of effect of derivatives designated as fair value hedging instruments on the Consolidated Statements of Profit	The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Fair Value Hedges (Millions of dollars) Year Ended December 31, 2018 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ — $ — Year Ended December 31, 2017 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (2 ) $ 2 Year Ended December 31, 2016 Classification Gains (Losses) on Derivatives Gains (Losses) on Borrowings Interest rate contracts Other income (expense) $ (12 ) $ 11
Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit	Cash Flow Hedges (Millions of dollars) Year Ended December 31, 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 $ (38 ) Interest expense $ — $ — Cross currency contracts 165 Other income (expense) 148 — Interest expense 19 — $ 127 $ 167 $ — Year Ended December 31, 2017 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 3 $ — Cross currency contracts (77 ) Other income (expense) (81 ) — Interest expense 6 — $ (77 ) $ (72 ) $ — Year Ended December 31, 2016 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 8 Interest expense $ (3 ) $ — Cross currency contracts 15 Other income (expense) 28 — $ 23 $ 25 $ —
Schedule of effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit	The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows for the years ended December 31: (Millions of dollars) Classification 2018 2017 2016 Foreign exchange contracts Other income (expense) $ 16 $ 14 $ (10 ) Cross currency contracts Other income (expense) 3 (5 ) (14 ) $ 19 $ 9 $ (24 )
Schedule of offsetting of derivative assets and liabilities	The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event as of December 31, was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) 2018 2017 Derivative Assets Gross Amount of Recognized Assets $ 112 $ 22 Gross Amounts Offset — — Net Amount of Assets (1) 112 22 Gross Amounts Not Offset (34 ) (10 ) Net Amount $ 78 $ 12 Derivative Liabilities Gross Amount of Recognized Liabilities $ (63 ) $ (68 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (63 ) (68 ) Gross Amounts Not Offset 34 10 Net Amount $ (29 ) $ (58 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income/(Loss) (Tables)	12 Months Ended
	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated other comprehensive income/(loss)	Comprehensive income/(loss) and its components are presented in the Consolidated Statements of Comprehensive Income. Changes in Accumulated other comprehensive income/(loss), net of tax, included in the Consolidated Statements of Changes in Shareholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Total Balance at December 31, 2015 $ (897 ) $ — $ (897 ) Other comprehensive income/(loss) before reclassifications (97 ) 15 (82 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (16 ) (16 ) Other comprehensive income/(loss) (97 ) (1 ) (98 ) Balance at December 31, 2016 $ (994 ) $ (1 ) $ (995 ) Other comprehensive income/(loss) before reclassifications 407 (49 ) 358 Amounts reclassified from accumulated other comprehensive (income)/loss — 45 45 Other comprehensive income/(loss) 407 (4 ) 403 Balance at December 31, 2017 $ (587 ) $ (5 ) $ (592 ) Other comprehensive income/(loss) before reclassifications (302 ) 98 (204 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (129 ) (129 ) Other comprehensive income/(loss) (302 ) (31 ) (333 ) Balance at December 31, 2018 $ (889 ) $ (36 ) $ (925 )
Reclassifications out of Accumulated other comprehensive income/(loss)	The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit during the years ended December 31, 2018 , 2017 and 2016 was as follows: (Millions of dollars) Derivative financial instruments Classification of income (expense) 2018 2017 2016 Cross currency contracts Other income (expense) $ 148 $ (81 ) $ 28 Cross currency contracts Interest expense 19 6 — Interest rate contracts Interest expense — 3 (3 ) Reclassifications before tax 167 (72 ) 25 Tax (provision) benefit (38 ) 27 (9 ) Total reclassifications from Accumulated other comprehensive income/(loss) $ 129 $ (45 ) $ 16

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Reconciliation of the U.S. federal statutory rate to effective rate	A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: (Millions of dollars) 2018 2017 2016 Taxes computed at U.S. statutory rates $ 91 21.0 % $ 206 35.0 % $ 196 35.0 % (Decreases) increases in taxes resulting from: State Income Tax, net of Federal Tax 1 0.2 % 2 0.3 % 2 0.4 % Subsidiaries' results subject to tax rates other than U.S. statutory rates 28 6.5 % (31 ) (5.3 )% (36 ) (6.5 )% Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (1) — — % (16 ) (2.7 )% 2 0.3 % Foreign currency translation taxed at non-U.S. subsidiaries (1 ) (0.2 )% (12 ) (2.0 )% 13 2.3 % U.S. deferred tax rate change (7 ) (1.6 )% (334 ) (56.6 )% — — % Mandatory deemed repatriation of non-U.S. earnings (5 ) (1.2 )% 183 31.0 % — — % Prior year tax adjustments 11 2.5 % — — % — — % Valuation allowances (7 ) (1.6 )% — — % — — % Other, net (3 ) (0.7 )% (2 ) (0.4 )% (6 ) (1.1 )% Provision (benefit) for income taxes $ 108 24.9 % $ (4 ) (0.7 )% $ 171 30.4 % (1) Excludes provisionally estimated net benefit from 2017 U.S. tax reform.
Components of Profit before income taxes	The components of Profit before income taxes for the years ended December 31, were as follows: (Millions of dollars) 2018 2017 2016 U.S. $ 213 $ 285 $ 249 Non-U.S. 220 305 312 Total $ 433 $ 590 $ 561
Components of the Provision (benefit) for income taxes	The components of the Provision (benefit) for income taxes were as follows for the years ended December 31: (Millions of dollars) 2018 2017 2016 Current income tax provision (benefit): U.S. $ (46 ) $ 157 $ (18 ) Non-U.S. 112 102 111 State (U.S.) 1 1 — 67 260 93 Deferred income tax provision (benefit): U.S. 67 (239 ) 90 Non-U.S. (26 ) (28 ) (15 ) State (U.S.) — 3 3 41 (264 ) 78 Total Provision (benefit) for income taxes $ 108 $ (4 ) $ 171
Deferred income tax assets and liabilities	The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: (Millions of dollars) 2018 2017 Assets: Other assets $ 108 $ 101 Liabilities: Other liabilities (653 ) (579 ) Deferred income taxes, net $ (545 ) $ (478 ) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) 2018 2017 Deferred income tax assets: Allowance for credit losses $ 111 $ 96 Tax carryforwards 44 43 155 139 Deferred income tax liabilities (primarily lease basis differences) (508 ) (441 ) Valuation allowance for deferred income tax assets (2 ) (11 ) Deferred income tax on translation adjustment (190 ) (165 ) Deferred income taxes, net $ (545 ) $ (478 )
Summary of net operating loss carryforwards	As of December 31, 2018 , amounts and expiration dates of net operating loss (NOL) carryforwards in various U.S. state taxing jurisdictions were: (Millions of dollars) 2019 2020 2021 2022 2023-2038 Unlimited Total $ 4 $ — $ 5 $ 5 $ 148 $ 2 $ 164 The gross deferred income tax asset associated with these NOL carryforwards is $13 million as of December 31, 2018 , partially offset by a valuation allowance of $2 million . In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis. At December 31, 2018 , approximately $12 million of U.S. foreign tax credits were available for carryforward. These credits expire in 2028. As of December 31, 2018 , amounts and expiration dates of NOL carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2019 2020 2021 2022 2023-2038 Unlimited Total $ — $ — $ 17 $ 3 $ 15 $ 105 $ 140 Valuation allowances of less than $1 million have been recorded at certain non-U.S. subsidiaries that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets.
Schedule of unrecognized tax benefits	A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: (Millions of dollars) 2018 2017 2016 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ — $ 4 $ — Additions for income tax positions related to current year 119 — 1 Additions for income tax positions related to prior year — — 3 Reductions for income tax positions related to settlements (2) — (4 ) — Balance at end of year $ 119 $ — $ 4 Amount that, if recognized, would impact the effective tax rate $ — $ — $ — (1) Foreign currency translation amounts are included within each line as applicable. (2) Includes cash payment or other reduction of assets to settle liability.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 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) 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 766 $ 766 $ 708 $ 708 1 Restricted cash and cash equivalents (2) $ 7 $ 7 $ 24 $ 24 1 Finance receivables, net (excluding finance leases (1) ) $ 20,451 $ 20,510 $ 20,063 $ 20,019 3 Note 2 Interest rate contracts: In a receivable position $ 4 $ 4 $ 3 $ 3 2 Note 9 In a payable position $ (40 ) $ (40 ) $ (2 ) $ (2 ) 2 Note 9 Cross currency contracts In a receivable position $ 93 $ 93 $ 7 $ 7 2 Note 9 In a payable position $ (11 ) $ (11 ) $ (57 ) $ (57 ) 2 Note 9 Foreign exchange contracts: In a receivable position $ 15 $ 15 $ 12 $ 12 2 Note 9 In a payable position $ (12 ) $ (12 ) $ (9 ) $ (9 ) 2 Note 9 Short-term borrowings $ (5,723 ) $ (5,723 ) $ (4,836 ) $ (4,836 ) 1 Note 7 Long-term debt $ (22,815 ) $ (22,684 ) $ (22,106 ) $ (22,230 ) 2 Note 8 Guarantees $ — $ — $ — $ — 3 Note 11 (1) As of December 31, 2018 and 2017 , represents finance leases with a net carrying value of $7.47 billion and $7.06 billion , respectively. (2) Included in Other assets in the Consolidated Statements of Financial Position.

Transactions with Related Par_2

Transactions with Related Parties (Tables)	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Transactions with Related Parties	We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.75 billion from Caterpillar, and Caterpillar may borrow up to $2.14 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. We extended a $2 billion committed credit facility to Caterpillar, which expires in February 2019. Under this agreement, we receive a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. Information concerning these agreements was as follows: (Millions of dollars) 2018 2017 2016 Payable to Caterpillar - borrowings as of December 31, $ 1,518 $ 1,638 $ 1,637 Payable to Caterpillar - other as of December 31, $ 83 $ 85 $ 49 Notes receivable as of December 31, $ 662 $ 559 $ 530 Other receivables from Caterpillar as of December 31, (2) $ 33 $ 31 $ 21 Interest expense $ 35 $ 21 $ 15 Interest income on Notes Receivable with Caterpillar (1) $ 30 $ 74 $ 30 Fees on committed credit facility extended to Caterpillar (1) $ 40 $ 40 $ 40 (1) Included in Other revenues, net in the Consolidated Statements of Profit. (2) Included in Other assets in the Consolidated Statements of Financial Position. We have agreements with Caterpillar to purchase certain trade receivables at a discount. Information pertaining to these purchases was as follows: (Millions of dollars) 2018 2017 2016 Purchases made $ 42,961 $ 34,667 $ 28,631 Discounts earned $ 375 $ 253 $ 207 Purchased Receivables as of December 31, $ 4,691 $ 3,461 $ 2,431

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Minimum payments for operating leases having initial non-cancelable terms in excess of one year	At December 31, 2018 , minimum payments for operating leases having initial non-cancelable terms in excess of one year were as follows: (Millions of dollars) 2019 $ 8 2020 6 2021 4 2022 2 2023 2 Thereafter 2 Total $ 24

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31: (Millions of dollars) 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2018 Capital expenditures North America $ 1,533 $ 434 $ 363 $ 572 $ 42 $ 15,632 $ 1,108 Europe 279 14 50 71 58 4,862 108 Asia/Pacific 357 168 111 18 (5 ) 4,639 14 Latin America 254 (3 ) 101 27 73 2,972 32 Caterpillar Power Finance 110 (143 ) 55 2 171 2,259 — Mining 256 34 60 128 8 2,234 192 Total Segments 2,789 504 740 818 347 32,598 1,454 Unallocated 92 (267 ) 248 1 — 1,957 104 Timing (34 ) (1 ) — — 7 55 1 Methodology — 197 (231 ) — — (159 ) — Inter-segment Eliminations (1) — — — — — (270 ) — Total $ 2,847 $ 433 $ 757 $ 819 $ 354 $ 34,181 $ 1,559 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2017 Capital expenditures North America $ 1,337 $ 353 $ 306 $ 520 $ 36 $ 14,790 $ 992 Europe 307 116 37 80 4 4,332 103 Asia/Pacific 267 99 87 25 (5 ) 4,214 6 Latin America 292 5 121 38 55 3,407 54 Caterpillar Power Finance 155 42 44 3 39 2,746 — Mining 272 49 50 142 8 2,399 210 Total Segments 2,630 664 645 808 137 31,888 1,365 Unallocated 90 (220 ) 193 — — 1,719 8 Timing (31 ) (6 ) — 2 (5 ) 53 — Methodology — 152 (171 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 2,689 $ 590 $ 667 $ 810 $ 132 $ 33,160 $ 1,373 2016 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2016 Capital expenditures North America $ 1,230 $ 326 $ 287 $ 477 $ 28 $ 14,925 $ 1,174 Europe 268 86 33 83 — 3,834 147 Asia/Pacific 254 82 81 29 3 3,620 74 Latin America 320 11 118 57 69 3,861 26 Caterpillar Power Finance 167 66 38 4 31 3,409 — Mining 308 49 47 188 7 2,734 206 Total Segments 2,547 620 604 838 138 32,383 1,627 Unallocated 80 (138 ) 116 — — 1,688 6 Timing (32 ) (12 ) — 3 (3 ) 27 3 Methodology — 91 (109 ) — — (220 ) — Inter-segment Eliminations (1) — — — — — (263 ) — Total $ 2,595 $ 561 $ 611 $ 841 $ 135 $ 33,615 $ 1,636 (1) Elimination is primarily related to intercompany loans.
Geographic information	Geographic information: (Millions of dollars) 2018 2017 2016 Revenues Inside U.S. $ 1,684 $ 1,551 $ 1,397 Inside Canada 163 157 171 Inside Australia 134 139 176 All other 866 842 851 Total $ 2,847 $ 2,689 $ 2,595 Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), Net 2018 2017 Inside U.S. $ 2,775 $ 2,554 Inside Canada 402 413 All other 513 663 Total $ 3,690 $ 3,630

Selected Quarterly Financial _2

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial data (unaudited)	(Millions of dollars) 2018 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 690 $ 723 $ 735 $ 699 Profit before income taxes $ 124 $ 100 $ 163 $ 46 Profit $ 91 $ 71 $ 125 $ 18 2017 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 662 $ 676 $ 673 $ 678 Profit before income taxes $ 167 $ 164 $ 126 $ 133 Profit $ 115 $ 114 $ 86 $ 271

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Period after which collection of future income is considered as not probable	120 days

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details 2) - Equipment on operating leases	12 Months Ended
	Dec. 31, 2018
Minimum
Depreciation
Lease term used to calculate depreciation	1 year
Maximum
Depreciation
Lease term used to calculate depreciation	7 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 3) $ in Millions	Jan. 01, 2019USD ($)
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle
Expected amount, Right-of-Use Assets and Lease Liabilities, under operating leases	$ 20
Accounting Standards Update 2018-02
New Accounting Pronouncements or Change in Accounting Principle
Expected amount, Reclassification of certain tax effects from AOCI to Retained Earnings	$ 97

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	$ 28,434	$ 27,491
Less: Allowance for credit losses	(511)	(365)	$ (343)
Total finance receivables, net	27,923	27,126
Retail loans
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	15,509	16,142
Retail leases
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	7,499	7,111
Caterpillar purchased receivables
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	4,691	3,461
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	626	691
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	$ 109	$ 86

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2019	$ 14,131
Amounts due in 2020	6,047
Amounts due in 2021	3,821
Amounts due in 2022	2,291
Amounts due in 2023	1,027
Amounts due thereafter	763
Total	28,080
Guaranteed residual value	458
Unguaranteed residual value	857
Unearned income	(961)
Recorded Investment in Finance Receivables	28,434	$ 27,491
Retail loans
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2019	5,947
Amounts due in 2020	3,851
Amounts due in 2021	2,629
Amounts due in 2022	1,790
Amounts due in 2023	853
Amounts due thereafter	699
Total	15,769
Guaranteed residual value	0
Unguaranteed residual value	0
Unearned income	(260)
Recorded Investment in Finance Receivables	15,509	16,142
Retail leases
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2019	3,024
Amounts due in 2020	2,055
Amounts due in 2021	1,092
Amounts due in 2022	465
Amounts due in 2023	171
Amounts due thereafter	62
Total	6,869
Guaranteed residual value	416
Unguaranteed residual value	854
Unearned income	(640)
Recorded Investment in Finance Receivables	7,499	7,111
Caterpillar Purchased Receivables
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2019	4,745
Amounts due in 2020	0
Amounts due in 2021	0
Amounts due in 2022	0
Amounts due in 2023	0
Amounts due thereafter	0
Total	4,745
Guaranteed residual value	0
Unguaranteed residual value	0
Unearned income	(54)
Recorded Investment in Finance Receivables	4,691	3,461
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2019	386
Amounts due in 2020	120
Amounts due in 2021	88
Amounts due in 2022	31
Amounts due in 2023	1
Amounts due thereafter	0
Total	626
Guaranteed residual value	0
Unguaranteed residual value	0
Unearned income	0
Recorded Investment in Finance Receivables	626	691
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2019	29
Amounts due in 2020	21
Amounts due in 2021	12
Amounts due in 2022	5
Amounts due in 2023	2
Amounts due thereafter	2
Total	71
Guaranteed residual value	42
Unguaranteed residual value	3
Unearned income	(7)
Recorded Investment in Finance Receivables	$ 109	$ 86

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	$ 365	$ 343	$ 511	$ 365
Allowance for credit losses as a percent of our recorded investment in finance receivables			1.80%	1.33%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	365	343
Receivables written off	(235)	(157)
Recoveries on receivables previously written off	46	43
Provision for credit losses	350	129
Adjustment due to sale of receivables	(7)	(1)
Foreign currency translation adjustment	(8)	8
Balance at end of year	511	365
Allowance for Credit Losses
Individually evaluated for impairment			$ 302	$ 149
Collectively evaluated for impairment			209	216
Allowance, Ending balance	365	343	511	365
Recorded Investment in Finance Receivables
Individually evaluated for impairment			937	942
Collectively evaluated for impairment			27,497	26,549
Recorded Investment in Finance Receivables, Ending Balance			28,434	27,491
Customer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	353	331	486	353
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	353	331
Receivables written off	(235)	(157)
Recoveries on receivables previously written off	46	43
Provision for credit losses	337	129
Adjustment due to sale of receivables	(7)	(1)
Foreign currency translation adjustment	(8)	8
Balance at end of year	486	353
Allowance for Credit Losses
Individually evaluated for impairment			288	149
Collectively evaluated for impairment			198	204
Allowance, Ending balance	353	331	486	353
Recorded Investment in Finance Receivables
Individually evaluated for impairment			859	942
Collectively evaluated for impairment			18,724	18,847
Recorded Investment in Finance Receivables, Ending Balance			19,583	19,789
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	9	10	21	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	12	(1)
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of year	21	9
Allowance for Credit Losses
Individually evaluated for impairment			14	0
Collectively evaluated for impairment			7	9
Allowance, Ending balance	9	10	21	9
Recorded Investment in Finance Receivables
Individually evaluated for impairment			78	0
Collectively evaluated for impairment			4,082	4,241
Recorded Investment in Finance Receivables, Ending Balance			4,160	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 year	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			4,691	3,461
Recorded Investment in Finance Receivables, Ending Balance			$ 4,691	$ 3,461

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Period after which collection of future income is considered as not probable	120 days
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 1,100	$ 845
Current	27,334	26,646
Recorded Investment in Finance Receivables	28,434	27,491
91 Plus, Still Accruing	24	36
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	213	195
61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	80	199
91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	807	451
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,583	19,789
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	167	128
Current	7,883	8,040
Recorded Investment in Finance Receivables	8,050	8,168
91 Plus, Still Accruing	14	8
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	65	71
Customer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	18	15
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	84	42
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	181	77
Current	2,850	2,718
Recorded Investment in Finance Receivables	3,031	2,795
91 Plus, Still Accruing	5	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	153	46
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	42	39
Current	2,923	2,520
Recorded Investment in Finance Receivables	2,965	2,559
91 Plus, Still Accruing	5	5
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	25	18
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	9	7
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	8	14
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	38	64
Current	1,642	1,751
Recorded Investment in Finance Receivables	1,680	1,815
91 Plus, Still Accruing	0	9
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	28	3
Customer | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	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	138	234
Current	1,421	1,546
Recorded Investment in Finance Receivables	1,559	1,780
91 Plus, Still Accruing	0	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	38	37
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	29	55
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	71	142
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	395	196
Current	1,903	2,476
Recorded Investment in Finance Receivables	2,298	2,672
91 Plus, Still Accruing	0	1
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	10	20
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	32
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	384	144
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,160	4,241
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,210	2,394
Recorded Investment in Finance Receivables	2,210	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	619	417
Recorded Investment in Finance Receivables	619	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	514	578
Recorded Investment in Finance Receivables	514	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	78	72
Current	731	773
Recorded Investment in Finance Receivables	809	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	78	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	4,691	3,461
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	52	31
Current	2,982	2,010
Recorded Investment in Finance Receivables	3,034	2,041
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	22	24
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	12	5
Caterpillar Purchased Receivables | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	18	2
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	2	4
Current	546	344
Recorded Investment in Finance Receivables	548	348
Caterpillar Purchased Receivables | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	1
Caterpillar Purchased Receivables | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	2
Caterpillar Purchased Receivables | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	1
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	7	0
Current	756	630
Recorded Investment in Finance Receivables	763	630
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	5	0
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	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	338	437
Recorded Investment in Finance Receivables	338	437
Caterpillar Purchased Receivables | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	8	5
Recorded Investment in Finance Receivables	8	5
Caterpillar Purchased Receivables | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 0	$ 0

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Customer
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	$ 143	$ 424
Unpaid Principal Balance With No Allowance Recorded	157	435
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	716	518
Unpaid Principal Balance With An Allowance Recorded	722	530
Related Allowance	288	149
Recorded Investment, Total	859	942
Unpaid Principal Balance, Total	879	965
Related Allowance, Total	288	149
Average Recorded Investment With No Allowance Recorded	283	496	$ 481
Interest Income Recognized With No Allowance Recorded	15	23	18
Average Recorded Investment With An Allowance Recorded	598	365	211
Interest Income Recognized With An Allowance Recorded	22	13	7
Average Recorded Investment, Total	881	861	692
Interest Income Recognized, Total	37	36	25
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	10	19
Unpaid Principal Balance With No Allowance Recorded	10	19
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	40	44
Unpaid Principal Balance With An Allowance Recorded	41	43
Related Allowance	14	17
Recorded Investment, Total	50	63
Unpaid Principal Balance, Total	51	62
Related Allowance, Total	14	17
Average Recorded Investment With No Allowance Recorded	16	13	18
Interest Income Recognized With No Allowance Recorded	1	1	1
Average Recorded Investment With An Allowance Recorded	49	49	34
Interest Income Recognized With An Allowance Recorded	2	1	0
Average Recorded Investment, Total	65	62	52
Interest Income Recognized, Total	3	2	1
Customer | Europe
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	1	45
Unpaid Principal Balance With No Allowance Recorded	1	45
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	92	9
Unpaid Principal Balance With An Allowance Recorded	92	8
Related Allowance	57	5
Recorded Investment, Total	93	54
Unpaid Principal Balance, Total	93	53
Related Allowance, Total	57	5
Average Recorded Investment With No Allowance Recorded	14	48	46
Interest Income Recognized With No Allowance Recorded	0	1	1
Average Recorded Investment With An Allowance Recorded	53	6	11
Interest Income Recognized With An Allowance Recorded	2	0	1
Average Recorded Investment, Total	67	54	57
Interest Income Recognized, Total	2	1	2
Customer | Asia/Pacific
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	1	34
Unpaid Principal Balance With No Allowance Recorded	1	33
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	4	8
Unpaid Principal Balance With An Allowance Recorded	4	8
Related Allowance	2	2
Recorded Investment, Total	5	42
Unpaid Principal Balance, Total	5	41
Related Allowance, Total	2	2
Average Recorded Investment With No Allowance Recorded	28	24	2
Interest Income Recognized With No Allowance Recorded	3	2	0
Average Recorded Investment With An Allowance Recorded	5	31	37
Interest Income Recognized With An Allowance Recorded	0	2	3
Average Recorded Investment, Total	33	55	39
Interest Income Recognized, Total	3	4	3
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	33	121
Unpaid Principal Balance With No Allowance Recorded	33	121
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	56	0
Unpaid Principal Balance With An Allowance Recorded	55	0
Related Allowance	26	0
Recorded Investment, Total	89	121
Unpaid Principal Balance, Total	88	121
Related Allowance, Total	26	0
Average Recorded Investment With No Allowance Recorded	57	126	98
Interest Income Recognized With No Allowance Recorded	2	7	4
Average Recorded Investment With An Allowance Recorded	46	0	13
Interest Income Recognized With An Allowance Recorded	3	0	0
Average Recorded Investment, Total	103	126	111
Interest Income Recognized, Total	5	7	4
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	29	45
Unpaid Principal Balance With No Allowance Recorded	29	45
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	75	95
Unpaid Principal Balance With An Allowance Recorded	75	106
Related Allowance	25	42
Recorded Investment, Total	104	140
Unpaid Principal Balance, Total	104	151
Related Allowance, Total	25	42
Average Recorded Investment With No Allowance Recorded	38	64	47
Interest Income Recognized With No Allowance Recorded	2	3	1
Average Recorded Investment With An Allowance Recorded	67	99	66
Interest Income Recognized With An Allowance Recorded	3	4	2
Average Recorded Investment, Total	105	163	113
Interest Income Recognized, Total	5	7	3
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	69	160
Unpaid Principal Balance With No Allowance Recorded	83	172
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	449	362
Unpaid Principal Balance With An Allowance Recorded	455	365
Related Allowance	164	83
Recorded Investment, Total	518	522
Unpaid Principal Balance, Total	538	537
Related Allowance, Total	164	83
Average Recorded Investment With No Allowance Recorded	130	221	270
Interest Income Recognized With No Allowance Recorded	7	9	11
Average Recorded Investment With An Allowance Recorded	378	180	50
Interest Income Recognized With An Allowance Recorded	12	6	1
Average Recorded Investment, Total	508	401	320
Interest Income Recognized, Total	19	15	12
Dealer
Financing Receivable, Impaired
Recorded Investment, Total	78	0	0
Average Recorded Investment, Total	0	0	0
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	0	0	0
Average Recorded Investment, Total	$ 0	$ 0	$ 0

Finance Receivables (Details 6)

Finance Receivables (Details 6) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 807	$ 683
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	77	38
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	154	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	50	63
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	106	192
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	416	343
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 78	$ 0

Finance Receivables (Details 7)

Finance Receivables (Details 7) $ in Millions	12 Months Ended
	Dec. 31, 2018USD ($)contracts	Dec. 31, 2017USD ($)contracts	Dec. 31, 2016USD ($)contracts
Finance receivables modified as TDRs
Number of Contracts | contracts	52	144	574
Pre-TDR Recorded Investment	$ 186	$ 579	$ 454
Post-TDR Recorded Investment	152	557	$ 387
TDRs with a payment default which had been modified within twelve months prior to the default date
Remaining commitments	$ 0	$ 0
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0
Customer
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	16	252	15
Post-TDR Recorded Investment	$ 44	$ 21	$ 5
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	38	43	25
Pre-TDR Recorded Investment	$ 21	$ 34	$ 25
Post-TDR Recorded Investment	$ 21	$ 35	$ 25
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	10	4	5
Post-TDR Recorded Investment	$ 10	$ 3	$ 2
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts | contracts	0	4	43
Pre-TDR Recorded Investment	$ 0	$ 1	$ 12
Post-TDR Recorded Investment	$ 0	$ 1	$ 9
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	0	1	5
Post-TDR Recorded Investment	$ 0	$ 0	$ 2
Customer | Asia/Pacific
Finance receivables modified as TDRs
Number of Contracts | contracts	0	10	31
Pre-TDR Recorded Investment	$ 0	$ 39	$ 29
Post-TDR Recorded Investment	$ 0	$ 31	$ 28
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	0	4	1
Post-TDR Recorded Investment	$ 0	$ 1	$ 0
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts	1	2	4
Pre-TDR Recorded Investment	$ 29	$ 57	$ 74
Post-TDR Recorded Investment	$ 29	$ 56	$ 66
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	1	17	437
Pre-TDR Recorded Investment	$ 3	$ 26	$ 118
Post-TDR Recorded Investment	$ 3	$ 27	$ 82
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	3	243	4
Post-TDR Recorded Investment	$ 1	$ 17	$ 1
Customer | Latin America | Amounts related to four customers
Finance receivables modified as TDRs
Number of Contracts | contracts			321
Pre-TDR Recorded Investment			$ 94
Post-TDR Recorded Investment			$ 64
Customer | Latin America | Amounts related to two customers
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts		238
Post-TDR Recorded Investment		$ 16
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	12	68	34
Pre-TDR Recorded Investment	$ 133	$ 422	$ 196
Post-TDR Recorded Investment	$ 99	$ 407	$ 177
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	3	0	0
Post-TDR Recorded Investment	$ 33	$ 0	$ 0
Customer | Caterpillar Power Finance | Amounts related to six customers
Finance receivables modified as TDRs
Number of Contracts | contracts		48
Pre-TDR Recorded Investment		$ 265
Post-TDR Recorded Investment		$ 258

Equipment on Operating Leases_2

Equipment on Operating Leases (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Equipment on operating leases
Equipment on operating leases, net	$ 128	$ 62
Scheduled minimum rental payments for operating leases
2,019	808
2,020	503
2,021	257
2,022	115
2,023	41
Thereafter	15
Total	1,739
Equipment leased to others
Equipment on operating leases
Equipment on operating leases, at cost	5,201	5,204
Less: Accumulated depreciation	(1,639)	(1,636)
Equipment on operating leases, net	$ 3,562	$ 3,568

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Customer and other miscellaneous receivables	$ 480	$ 457
Collateral held for resale, at net realizable value	316	432
Deferred and refundable income taxes	191	174
Property and equipment, net	128	62
Other	153	74
Total other assets	1,268	1,199
Caterpillar
Other	$ 33	$ 31	$ 21

Concentration of Credit Risk (D

Concentration of Credit Risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Concentration Risk
Derivatives, Maximum exposure to credit loss	$ 112	$ 22
Construction related industries
Concentration Risk
Concentration Risk, Percentage	33.00%	33.00%
North America
Concentration Risk
Concentration Risk, Percentage	60.00%	60.00%

Credit Commitments (Details)

Credit Commitments (Details) $ in Millions	6 Months Ended	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Line of Credit Facility
Number of global credit facilities	3	3
Caterpillar's consolidated net worth	$ 14,070	$ 14,070
Minimum net worth required under the Credit Facility	$ 9,000	$ 9,000
Covenant interest coverage ratio, Numerator		1.56
Covenant interest coverage ratio, Denominator		1
Minimum interest coverage ratio, required by the Credit Facility, Numerator		1.15
Minimum interest coverage ratio, required by the Credit Facility, Denominator		1
Leverage Ratio, Numerator	7.69	8.33
Leverage Ratio, Denominator	1	1
Maximum Leverage Ratio, Permissible Under Credit Facility, Numerator		10
Maximum Leverage Ratio, Permissible Under Credit Facility, Denominator		1
Amount available	$ 10,500	$ 10,500
Short-term borrowings, Balance	5,723	5,723	$ 4,836
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,750	2,750
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140	$ 2,140
Term lending agreements, maximum remaining maturity		10 years
Notes receivable from Caterpillar	662	$ 662	559	$ 530
Notes payable to Caterpillar	1,518	1,518	1,638	$ 1,637
Amount available, Committed credit facility extended to Caterpillar	2,000	2,000
Amount outstanding, Committed credit facility extended to Caterpillar	0	0
Revolving credit facilities
Line of Credit Facility
Amount outstanding	0	0
Revolving credit facilities | Cat Financial
Line of Credit Facility
Amount available	7,750	7,750
364-day facility
Line of Credit Facility
Amount available	3,150	3,150
364-day facility | Cat Financial
Line of Credit Facility
Amount available	2,330	2,330
Three-year facility
Line of Credit Facility
Amount available	2,730	2,730
Three-year facility | Cat Financial
Line of Credit Facility
Amount available	2,010	2,010
Five-year facility
Line of Credit Facility
Amount available	4,620	4,620
Five-year facility | Cat Financial
Line of Credit Facility
Amount available	3,410	3,410
Credit lines with banks
Line of Credit Facility
Amount available	4,580	4,580
Amount outstanding	1,170	1,170	1,480
Variable denomination floating rate demand notes
Line of Credit Facility
Short-term borrowings, Balance	438	438	$ 481
Maximum amount of variable denomination floating rate demand notes outstanding	$ 1,250	$ 1,250

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Short-term Debt
Short-term borrowings, Balance	$ 5,723	$ 4,836
Commercial paper, net
Short-term Debt
Short-term borrowings, Balance	$ 4,759	$ 3,680
Short-term borrowings, Avg. Rate	2.00%	1.10%
Bank borrowings
Short-term Debt
Short-term borrowings, Balance	$ 526	$ 675
Short-term borrowings, Avg. Rate	5.30%	5.20%
Variable denomination floating rate demand notes
Short-term Debt
Short-term borrowings, Balance	$ 438	$ 481
Short-term borrowings, Avg. Rate	2.20%	1.10%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument
Medium-term notes, maximum remaining maturity	9 years
Long-term debt	$ 22,815	$ 22,106
Long-term debt outstanding maturity:
2,019	5,820
2,020	6,407
2,021	4,884
2,022	2,053
2,023	2,158
Thereafter	1,493
Total	22,815	22,106
Medium-term notes, callable	238
Medium-term notes
Debt Instrument
Long-term debt issued	6,840
Long-term debt issued at fixed interest rates	3,790
Long-term debt issued at floating interest rates	3,050
Long term debt, gross	22,226	21,362
Unamortized discount and debt issuance costs	(57)	(59)
Long-term debt	$ 22,169	$ 21,303
Long-term debt, Avg. Rate	2.60%	2.50%
Long-term debt outstanding maturity:
Total	$ 22,169	$ 21,303
Bank borrowings
Debt Instrument
Long-term debt	$ 646	$ 803
Long-term debt, Avg. Rate	5.80%	5.00%
Long-term debt outstanding maturity:
Total	$ 646	$ 803

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) $ in Millions	Dec. 31, 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	Dec. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value
Asset Fair Value	$ 112	$ 22
Liability Fair Value	(63)	(68)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	43	(49)
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	4	3
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(40)	(2)
Designated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	88	7
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(9)	(57)
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	6	3
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	15	12
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(12)	(9)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	5	0
Undesignated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	$ (2)	$ 0

Derivative Financial Instrume_5

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Derivative
Derivative instruments, notional amount	$ 10,210	$ 3,690

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Designated derivatives | Fair value hedges | Interest rate contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives	$ 0	$ (2)	$ (12)
Gains (Losses) on Borrowings	0	2	11
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	127	(77)	23
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	167	(72)	25
Recognized in Earnings (Ineffective Portion)	0	0	0
Designated derivatives | Cash flow hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	(38)	0	8
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	0	3	(3)
Recognized in Earnings (Ineffective Portion)	0	0	0
Designated derivatives | Cash flow hedges | Cross currency contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	19	6
Recognized in Earnings (Ineffective Portion)	0	0
Designated derivatives | Cash flow hedges | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Amounts of Gains (Losses) Recognized in AOCI (Effective Portion)	165	(77)	15
Amount of Gains (Losses) Reclassified from AOCI to Earnings (Effective Portion)	148	(81)	28
Recognized in Earnings (Ineffective Portion)	0	0	0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	19	9	(24)
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	16	14	(10)
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 3	$ (5)	$ (14)

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Offsetting Assets and Liabilities
Gross Amount of Recognized Assets	$ 112	$ 22
Gross Amounts Offset	0	0
Net Amount of Assets	112	22
Gross Amounts Not Offset	(34)	(10)
Net Amount	78	12
Gross Amount of Recognized Liabilities	(63)	(68)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(63)	(68)
Gross Amounts Not Offset	34	10
Net Amount	$ (29)	$ (58)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	$ (592)	$ (995)	$ (897)
Other comprehensive income/(loss) before reclassifications	(204)	358	(82)
Amounts reclassified from accumulated other comprehensive (income)/loss	(129)	45	(16)
Other comprehensive income/(loss)	(333)	403	(98)
Balance at end of year	(925)	(592)	(995)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	(587)	(994)	(897)
Other comprehensive income/(loss) before reclassifications	(302)	407	(97)
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0
Other comprehensive income/(loss)	(302)	407	(97)
Balance at end of year	(889)	(587)	(994)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	(5)	(1)	0
Other comprehensive income/(loss) before reclassifications	98	(49)	15
Amounts reclassified from accumulated other comprehensive (income)/loss	(129)	45	(16)
Other comprehensive income/(loss)	(31)	(4)	(1)
Balance at end of year	$ (36)	$ (5)	$ (1)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018		Dec. 31, 2017		Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)									$ (23)		$ (15)		$ (15)
Interest Expense									(757)		(667)		(611)
Reclassifications before tax	$ 46	$ 163	$ 100	$ 124	$ 133	$ 126	$ 164	$ 167	433		590		561
Tax (provision) benefit									(108)		4		(171)
Total reclassifications from Accumulated other comprehensive income/(loss)	$ 18	$ 125	$ 71	$ 91	$ 271	$ 86	$ 114	$ 115	305	[1]	586	[1]	384	[1]
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax									167		(72)		25
Tax (provision) benefit									(38)		27		(9)
Total reclassifications from Accumulated other comprehensive income/(loss)									129		(45)		16
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)									148		(81)		28
Interest Expense									19		6		0
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest Expense									$ 0		$ 3		$ (3)
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Guarantees
Guarantees, maximum potential amount of future payments	$ 97	$ 91
SPC's assets in Consolidated Statements of Financial Position	1,150	1,110
SPC's liabilities in Consolidated Statements of Financial Position	1,150	1,110
Unused commitments and lines of credit for dealers	12,000	11,210
Unused commitments for customers	815	715
Maximum
Guarantees
Related recorded liability	$ 1	$ 1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Provisional net benefit related to U.S. 2017 Tax Reform, estimated impact	$ 151	$ 12
Estimated write-down of net deferred tax liabilities		$ 7	$ 334	$ 0
U.S. statutory tax rate (as a percent)		21.00%	35.00%	35.00%
Estimated cost of a mandatory deemed repatriation of non-U.S. earnings		$ (5)	$ 183	$ 0
Reconciliation of statutory rate to effective income tax rate
Taxes computed at U.S. statutory rates		$ 91	$ 206	$ 196
U.S. statutory tax rate (as a percent)		21.00%	35.00%	35.00%
(Decreases) increases in taxes resulting from:
State Income Tax, net of Federal Tax		$ 1	$ 2	$ 2
State Income Tax, net of Federal Tax (as a percent)		0.20%	0.30%	0.40%
Subsidiaries' results subject to tax rates other than U.S. statutory rates		$ 28	$ (31)	$ (36)
Subsidiaries' results subject to tax rates other than U.S. statutory rates (as a percent)		6.50%	(5.30%)	(6.50%)
Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits		$ 0	$ (16)	$ 2
Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (as a percent)		0.00%	(2.70%)	0.30%
Foreign currency translation taxed at non-U.S. subsidiaries		$ (1)	$ (12)	$ 13
Foreign currency translation taxed at non-U.S subsidiaries (as a percent)		(0.20%)	(2.00%)	2.30%
U.S. deferred tax rate change		$ (7)	$ (334)	$ 0
U.S. deferrd tax rate change (as a percent)		(1.60%)	(56.60%)	0.00%
Mandatory deemed repatriation of non-U.S. earnings		$ (5)	$ 183	$ 0
Mandatory deemed repatriation of non-U.S. earnings (as a percent)		(1.20%)	31.00%	0.00%
Prior year tax adjustments		$ 11	$ 0	$ 0
Prior year tax adjustments (as a percent)		2.50%	0.00%	0.00%
Valuation allowances		$ (7)	$ 0	$ 0
Valuation allowances (as a percent)		(1.60%)	0.00%	0.00%
Other, net		$ (3)	$ (2)	$ (6)
Other, net (as a percent)		(0.70%)	(0.40%)	(1.10%)
Provision (benefit) for income taxes		$ 108	$ (4)	$ 171
Provision (benefit) for income taxes, Effective Income Tax Rate (as a percent)		24.90%	(0.70%)	30.40%
Prior year tax adjustments		$ 11	$ 0	$ 0
Valuation allowances		$ 7	$ 0	$ 0

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Components of Profit before income taxes
U.S.									$ 213	$ 285	$ 249
Non-U.S.									220	305	312
Profit before income taxes	$ 46	$ 163	$ 100	$ 124	$ 133	$ 126	$ 164	$ 167	433	590	561
Current income tax provision (benefit)
U.S.									(46)	157	(18)
Non-U.S.									112	102	111
State (U.S.)									1	1	0
Current income tax provision (benefit)									67	260	93
Deferred income tax provision (benefit)
U.S.									67	(239)	90
Non-U.S.									(26)	(28)	(15)
State (U.S.)									0	3	3
Deferred income tax provision (benefit)									41	(264)	78
Total Provision (benefit) for income taxes									$ 108	$ (4)	$ 171

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Other assets	$ 108	$ 101
Deferred tax liabilities
Other liabilities	(653)	(579)
Deferred income taxes, net	$ (545)	$ (478)

Income Taxes (Details 4)

Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred income tax assets:
Allowance for credit losses	$ 111	$ 96
Tax carryforwards	44	43
Deferred tax assets, gross	155	139
Deferred income tax liabilities (primarily lease basis differences)	(508)	(441)
Valuation allowance for deferred income tax assets	(2)	(11)
Deferred income tax on translation adjustment	(190)	(165)
Deferred income taxes, net	$ (545)	$ (478)

Income Taxes (Details 5)

Income Taxes (Details 5) $ in Millions	Dec. 31, 2018USD ($)
Net operating loss (NOL) carryforwards
U.S. foreign tax credits available for carryforward	$ 12
U.S. state taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards	164
Gross deferred income tax asset associated with NOL carryforwards	13
NOL carryforwards, Valuation allowance	2
U.S. state taxing jurisdictions | Expiration Date 2019
Net operating loss (NOL) carryforwards
NOL carryforwards	4
U.S. state taxing jurisdictions | Expiration Date 2020
Net operating loss (NOL) carryforwards
NOL carryforwards	0
U.S. state taxing jurisdictions | Expiration Date 2021
Net operating loss (NOL) carryforwards
NOL carryforwards	5
U.S. state taxing jurisdictions | Expiration Date 2022
Net operating loss (NOL) carryforwards
NOL carryforwards	5
U.S. state taxing jurisdictions | Expiration Date 2023-2038
Net operating loss (NOL) carryforwards
NOL carryforwards	148
U.S. state taxing jurisdictions | Unlimited
Net operating loss (NOL) carryforwards
NOL carryforwards	2
Non-U.S. taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards	140
Non-U.S. taxing jurisdictions | Expiration Date 2019
Net operating loss (NOL) carryforwards
NOL carryforwards	0
Non-U.S. taxing jurisdictions | Expiration Date 2020
Net operating loss (NOL) carryforwards
NOL carryforwards	0
Non-U.S. taxing jurisdictions | Expiration Date 2021
Net operating loss (NOL) carryforwards
NOL carryforwards	17
Non-U.S. taxing jurisdictions | Expiration Date 2022
Net operating loss (NOL) carryforwards
NOL carryforwards	3
Non-U.S. taxing jurisdictions | Expiration Date 2023-2038
Net operating loss (NOL) carryforwards
NOL carryforwards	15
Non-U.S. taxing jurisdictions | Unlimited
Net operating loss (NOL) carryforwards
NOL carryforwards	105
Maximum | Non-U.S. taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards, Valuation allowance	$ 1

Income Taxes (Details 6)

Income Taxes (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of unrecognized income tax benefits
Unrecognized tax benefits, beginning of year	$ 0	$ 4	$ 0
Additions for income tax positions related to current year	119	0	1
Additions for income tax positions related to prior year	0	0	3
Reductions for income tax positions related to settlements	0	(4)	0
Unrecognized tax benefits, end of year	119	0	4
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	0	0	0
Recognized interest and penalties	(1)	2
Maximum
Reconciliation of unrecognized income tax benefits
Recognized interest and penalties			$ (1)
Accrued interest and penalties	$ 1	$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Recurring basis | Level 2
Assets
Derivative financial instruments, net asset (liability) position	$ 49	$ (46)

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Fair value of impaired loans	$ 469	$ 341

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial Instruments, Financial Assets, Balance Sheet Groupings
Restricted cash and cash equivalents	$ 7	$ 24	$ 29
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(5,723)	(4,836)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	766	708
Restricted cash and cash equivalents	7	24
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(5,723)	(4,836)
Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest rate contracts, in a receivable position	4	3
Foreign exchange contracts, in a receivable position	15	12
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(40)	(2)
Foreign exchange contracts, in a payable position	(12)	(9)
Long-term debt	(22,684)	(22,230)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,510	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	766	708
Restricted cash and cash equivalents	7	24
Finance receivables, net (excluding finance leases)	20,451	20,063
Interest rate contracts, in a receivable position	4	3
Foreign exchange contracts, in a receivable position	15	12
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(40)	(2)
Foreign exchange contracts, in a payable position	(12)	(9)
Short-term borrowings	(5,723)	(4,836)
Long-term debt	(22,815)	(22,106)
Guarantees	0	0
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases	7,470	7,060
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	93	7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	(11)	(57)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	93	7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	$ (11)	$ (57)

Transactions with Related Par_3

Transactions with Related Parties (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transaction
Dividend paid to Caterpillar									$ 400	$ 725	$ 275
Maximum borrowing capacity from Caterpillar, Variable lending agreements	$ 2,750								2,750
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140								2,140
Amount available, Committed credit facility extended to Caterpillar	2,000								2,000
Payable to Caterpillar - borrowings	1,518				$ 1,638				1,518	1,638	1,637
Payable to Caterpillar - other	83				85				83	85	49
Notes receivable from Caterpillar	662				559				662	559	530
Other receivables from Caterpillar	153				74				153	74
Discounts earned on purchased receivables									375	253	207
Total revenues	699	$ 735	$ 723	$ 690	678	$ 673	$ 676	$ 662	2,847	2,689	2,595
Depreciation on equipment leased to others									819	810	841
Caterpillar
Related Party Transaction
Dividend paid to Caterpillar									400	725	275
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,750								2,750
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140								2,140
Amount available, Committed credit facility extended to Caterpillar	2,000								2,000
Other receivables from Caterpillar	33				31				33	31	21
Interest expense, Caterpillar									35	21	15
Interest income on Notes Receivable with Caterpillar									30	74	30
Fees on committed credit facility extended to Caterpillar									40	40	40
Purchases of receivables from Caterpillar									42,961	34,667	28,631
Discounts earned on purchased receivables									375	253	207
Balance of purchased receivables	4,691				3,461				4,691	3,461	2,431
Marketing program payments received									335	277	273
Total portfolio, which includes finance receivables and equipment on operating lease, net of depreciation	56				17				56	17
Total revenues									9	4	8
Depreciation on equipment leased to others									5	3	7
Amount of our portfolio that is subject to guarantees by Caterpillar	$ 450				$ 481				450	481
Charges for employee medical plans and postretirement benefit plans administered by Caterpillar									34	31	29
Contributions to defined benefit plans									9	8	7
Stock based compensation expense									8	8	9
Operational and administrative support charges reimbursed to Caterpillar									35	30	28
Administrative support services to certain Caterpillar subsidiaries reimbursed by Caterpillar									$ 11	$ 9	$ 9

Leases (Details)

Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Leases [Abstract]
Rental expense for operating leases	$ 11	$ 16	$ 17
Minimum payments for operating leases having initial or remaining non-cancelable terms
2,019	8
2,020	6
2,021	4
2,022	2
2,023	2
Thereafter	2
Total	$ 24

Segment and Geographic Inform_3

Segment and Geographic Information (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information
External Revenues	$ 699	$ 735	$ 723	$ 690	$ 678	$ 673	$ 676	$ 662	$ 2,847	$ 2,689	$ 2,595
Profit before income taxes	46	$ 163	$ 100	$ 124	133	$ 126	$ 164	$ 167	433	590	561
Interest Expense									757	667	611
Depreciation on equipment leased to others									819	810	841
Provision for credit losses									354	132	135
Assets	34,181				33,160				34,181	33,160	33,615
Capital expenditures									1,559	1,373	1,636
Operating Segments
Segment Reporting Information
External Revenues									2,789	2,630	2,547
Profit before income taxes									504	664	620
Interest Expense									740	645	604
Depreciation on equipment leased to others									818	808	838
Provision for credit losses									347	137	138
Assets	32,598				31,888				32,598	31,888	32,383
Capital expenditures									1,454	1,365	1,627
Unallocated
Segment Reporting Information
External Revenues									92	90	80
Profit before income taxes									(267)	(220)	(138)
Interest Expense									248	193	116
Depreciation on equipment leased to others									1	0	0
Provision for credit losses									0	0	0
Assets	1,957				1,719				1,957	1,719	1,688
Capital expenditures									104	8	6
Timing
Segment Reporting Information
External Revenues									(34)	(31)	(32)
Profit before income taxes									(1)	(6)	(12)
Interest Expense									0	0	0
Depreciation on equipment leased to others									0	2	3
Provision for credit losses									7	(5)	(3)
Assets	55				53				55	53	27
Capital expenditures									1	0	3
Methodology
Segment Reporting Information
External Revenues									0	0	0
Profit before income taxes									197	152	91
Interest Expense									(231)	(171)	(109)
Depreciation on equipment leased to others									0	0	0
Provision for credit losses									0	0	0
Assets	(159)				(256)				(159)	(256)	(220)
Capital expenditures									0	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues									0	0	0
Profit before income taxes									0	0	0
Interest Expense									0	0	0
Depreciation on equipment leased to others									0	0	0
Provision for credit losses									0	0	0
Assets	(270)				(244)				(270)	(244)	(263)
Capital expenditures									0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues									1,533	1,337	1,230
Profit before income taxes									434	353	326
Interest Expense									363	306	287
Depreciation on equipment leased to others									572	520	477
Provision for credit losses									42	36	28
Assets	15,632				14,790				15,632	14,790	14,925
Capital expenditures									1,108	992	1,174
Europe | Operating Segments
Segment Reporting Information
External Revenues									279	307	268
Profit before income taxes									14	116	86
Interest Expense									50	37	33
Depreciation on equipment leased to others									71	80	83
Provision for credit losses									58	4	0
Assets	4,862				4,332				4,862	4,332	3,834
Capital expenditures									108	103	147
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues									357	267	254
Profit before income taxes									168	99	82
Interest Expense									111	87	81
Depreciation on equipment leased to others									18	25	29
Provision for credit losses									(5)	(5)	3
Assets	4,639				4,214				4,639	4,214	3,620
Capital expenditures									14	6	74
Latin America | Operating Segments
Segment Reporting Information
External Revenues									254	292	320
Profit before income taxes									(3)	5	11
Interest Expense									101	121	118
Depreciation on equipment leased to others									27	38	57
Provision for credit losses									73	55	69
Assets	2,972				3,407				2,972	3,407	3,861
Capital expenditures									32	54	26
Caterpillar Power Finance | Operating Segments
Segment Reporting Information
External Revenues									110	155	167
Profit before income taxes									(143)	42	66
Interest Expense									55	44	38
Depreciation on equipment leased to others									2	3	4
Provision for credit losses									171	39	31
Assets	2,259				2,746				2,259	2,746	3,409
Capital expenditures									0	0	0
Mining | Operating Segments
Segment Reporting Information
External Revenues									256	272	308
Profit before income taxes									34	49	49
Interest Expense									60	50	47
Depreciation on equipment leased to others									128	142	188
Provision for credit losses									8	8	7
Assets	$ 2,234				$ 2,399				2,234	2,399	2,734
Capital expenditures									$ 192	$ 210	$ 206

Segment and Geographic Inform_4

Segment and Geographic Information (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets
External Revenues	$ 699	$ 735	$ 723	$ 690	$ 678	$ 673	$ 676	$ 662	$ 2,847	$ 2,689	$ 2,595
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	3,690				3,630				3,690	3,630
Inside U.S.
Revenues from External Customers and Long-Lived Assets
External Revenues									1,684	1,551	1,397
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	2,775				2,554				2,775	2,554
Inside Canada
Revenues from External Customers and Long-Lived Assets
External Revenues									163	157	171
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	402				413				402	413
Inside Australia
Revenues from External Customers and Long-Lived Assets
External Revenues									134	139	176
All other
Revenues from External Customers and Long-Lived Assets
External Revenues									866	842	$ 851
Equipment on Operating Leases and Non-Leased Equipment (included in Other Assets), net	$ 513				$ 663				$ 513	$ 663

Selected Quarterly Financial _3

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018		Dec. 31, 2017		Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 699	$ 735	$ 723	$ 690	$ 678	$ 673	$ 676	$ 662	$ 2,847		$ 2,689		$ 2,595
Profit before income taxes	46	163	100	124	133	126	164	167	433		590		561
Profit	$ 18	$ 125	$ 71	$ 91	$ 271	$ 86	$ 114	$ 115	$ 305	[1]	$ 586	[1]	$ 384	[1]
[1]	Profit attributable to Caterpillar Financial Services Corporation.