Caterpillar Financial Services 10-Q 6 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Entity Information
Entity Registrant Name	CATERPILLAR FINANCIAL SERVICES CORPORATION
Entity Central Index Key	0000764764
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Revenues:
Retail finance		$ 335	$ 317
Operating lease		258	244
Wholesale finance		119	91
Other, net		24	38
Total revenues		736	690
Expenses:
Interest		201	174
Depreciation on equipment leased to others		202	199
General, operating and administrative		124	110
Provision for credit losses		53	67
Other		10	9
Total expenses		590	559
Other income (expense)		(4)	(7)
Profit before income taxes		142	124
Provision for income taxes		38	29
Profit of consolidated companies		104	95
Less: Profit attributable to noncontrolling interests		6	4
Profit	[1]	$ 98	$ 91
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 104	$ 95
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	15	71
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	(3)	(26)
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	(11)	20
Total Other comprehensive income (loss), net of tax	1	65
Comprehensive income (loss)	105	160
Less: Comprehensive income (loss) attributable to the noncontrolling interests	8	10
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 97	$ 150

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ (4)	$ 16
Derivative financial instruments:
Gains (losses) deferred, tax	1	7
(Gains) losses reclassified to earnings, tax	$ 3	$ (5)

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 658	$ 766
Finance receivables, net	27,785	27,923
Notes receivable from Caterpillar	645	662
Equipment on operating leases, net	3,471	3,562
Other assets	1,265	1,268
Total assets	33,824	34,181
Liabilities and shareholder's equity:
Payable to dealers and others	116	117
Payable to Caterpillar - borrowings and other	1,544	1,601
Accrued expenses	267	259
Short-term borrowings	5,586	5,723
Current maturities of long-term debt	5,939	5,820
Long-term debt	16,590	16,995
Other liabilities	828	817
Total liabilities	30,870	31,332
Commitments and contingent liabilities (Notes 8 and 10)
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	2,875	2,874
Accumulated other comprehensive income/(loss)	(829)	(925)
Noncontrolling interests	161	153
Total shareholder's equity	2,954	2,849
Total liabilities and shareholder's equity	$ 33,824	$ 34,181

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parentheticals) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Shareholder's Equity:
Common stock - par value	$ 1	$ 1
Common stock - authorized	2,000	2,000
Common stock - issued	1	1
Common stock - outstanding	1	1

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholder's Equity - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Noncontrolling interests
Balance at Dec. 31, 2017	$ 3,264	$ 745	$ 2	$ 2,969	$ (592)	$ 140
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	95			91		4
Foreign currency translation, net of tax	71				65	6
Derivative financial instruments, net of tax	(6)				(6)
Balance at Mar. 31, 2018	3,424	745	2	3,060	(533)	150
Balance at Dec. 31, 2018	2,849	745	2	2,874	(925)	153
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	104			98		6
Foreign currency translation, net of tax	15				13	2
Derivative financial instruments, net of tax	(14)				(14)
Adjustment to adopt new accounting guidance | Accounting Standards Update 2018-02	0			(97)	97
Balance at Mar. 31, 2019	$ 2,954	$ 745	$ 2	$ 2,875	$ (829)	$ 161

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Profit of consolidated companies	$ 104	$ 95
Adjustments for non-cash items:
Depreciation and amortization	206	202
Amortization of receivables purchase discount	(109)	(82)
Provision for credit losses	53	67
Other, net	33	22
Changes in assets and liabilities:
Other assets	2	(2)
Payable to dealers and others	13	16
Accrued expenses	(11)	(27)
Other payables with Caterpillar	4	0
Other liabilities	4	(37)
Net cash provided by operating activities	299	254
Cash flows from investing activities:
Expenditures for equipment on operating leases	(242)	(269)
Capital expenditures - excluding equipment on operating leases	(4)	(92)
Proceeds from disposals of equipment	182	205
Additions to finance receivables	(2,971)	(2,955)
Collections of finance receivables	3,096	3,171
Net changes in Caterpillar purchased receivables	(16)	(489)
Proceeds from sales of receivables	44	69
Net change in variable lending to Caterpillar	1	8
Additions to other notes receivable with Caterpillar	0	(90)
Collections on other notes receivable with Caterpillar	16	20
Settlements of undesignated derivatives	(25)	(1)
Net cash provided by (used for) investing activities	81	(423)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	(63)	(107)
Proceeds from debt issued (original maturities greater than three months)	2,664	1,541
Payments on debt issued (original maturities greater than three months)	(2,565)	(2,408)
Short-term borrowings, net (original maturities three months or less)	(525)	1,145
Net cash provided by (used for) financing activities	(489)	171
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2)	4
Increase/(decrease) in cash, cash equivalents and restricted cash	(111)	6
Cash, cash equivalents and restricted cash at beginning of year	773	732
Cash, cash equivalents and restricted cash at end of period	$ 662	$ 738

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Statement of Cash Flows [Abstract]
Restricted cash and cash equivalents	$ 4	$ 7

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated profit for the three months ended March 31, 2019 and 2018 , (b) the consolidated comprehensive income for the three months ended March 31, 2019 and 2018 , (c) the consolidated financial position as of March 31, 2019 and December 31, 2018 , (d) the consolidated changes in shareholder's equity for the three months ended March 31, 2019 and 2018 and (e) the consolidated cash flows for the three months ended March 31, 2019 and 2018 . The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), requires management to make estimates and assumptions that affect reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2018 ( 2018 Form 10-K) filed with the SEC on February 14, 2019. The December 31, 2018 financial position data included herein was derived from the audited consolidated financial statements included in the 2018 Form 10-K but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform with current period financial statement presentation. We consolidate all variable interest entities (VIEs) where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 8 for more information. We have customers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Lease accounting – In February 2016, the Financial Accounting Standards Board (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. The new guidance was effective January 1, 2019 and was applied using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of January 1, 2019. The prior period comparative information has not been recasted and continues to be reported under the accounting guidance in effect for those periods. 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 with a term of twelve months or less. 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. The adoption did not have a material impact on our results of operations. In March 2019, the FASB issued accounting guidance which amended the new leasing guidance. Under these amendments, lessors that are not manufacturers or dealers will use their cost, less any discounts that may apply, as the fair value of the underlying asset, and lessors within the scope of Financial Services-Depository and Lending guidance will present all principal payments received under leases within investment activities on the statement of cash flows. We adopted the new guidance effective January 1, 2019, and the adoption did not have a material impact to our financial statements. See Note 4 for additional information. 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. An implementation team is currently evaluating data requirements and methodologies to assess the effect of the new guidance on our financial statements. We plan to adopt the new guidance effective January 1, 2020. 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 guidance was effective January 1, 2019. This presentation change was applied prospectively and did not 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. We adopted the guidance effective January 1, 2019 and the resulting reclassification was included in the period of adoption. The reclassification resulted in decreased retained earnings and increased AOCI of $97 million .

Finance Receivables

Finance Receivables	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Finance Receivables	Finance Receivables A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) March 31, December 31, Retail loans, net (1) $ 15,207 $ 15,509 Retail leases, net (2) 7,483 7,499 Caterpillar purchased receivables, net 4,814 4,691 Wholesale loans, net (1) 714 626 Wholesale leases, net 101 109 Recorded investment in finance receivables 28,319 28,434 Less: Allowance for credit losses (534 ) (511 ) Total finance receivables, net $ 27,785 $ 27,923 (1) Includes failed sale leasebacks. (2) Includes $9 million of finance leases with Caterpillar as of March 31, 2019 and December 31, 2018. Allowance for Credit Losses The allowance for credit losses is an estimate of the losses inherent in our finance receivable portfolio and includes consideration of accounts that have been individually identified as impaired, as well as pools of finance receivables where it is probable that certain receivables in the pool are impaired but the individual accounts cannot yet be identified. In identifying and measuring impairment, management takes into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions. Accounts are identified for individual review based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated and determined to be impaired is based on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. The allowance for credit losses attributable to the remaining accounts not yet individually identified as impaired is estimated based on loss forecast models utilizing probabilities of default, our estimate of the loss emergence period and the estimated loss given default. In addition, qualitative factors not able to be fully captured in our loss forecast models including industry trends, macroeconomic factors and model imprecision are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Our allowance for credit losses is segregated into three portfolio segments: • Customer - Finance receivables with 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 March 31, 2019 was $534 million or 1.89 percent of our recorded investment in finance receivables compared with $511 million or 1.80 percent as of December 31, 2018 . An analysis of the allowance for credit losses was as follows: (Millions of dollars) March 31, 2019 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 486 $ 21 $ 4 $ 511 Receivables written off (38 ) — — (38 ) Recoveries on receivables previously written off 8 — — 8 Provision for credit losses 39 13 1 53 Adjustment due to sale of receivables — — — — Foreign currency translation adjustment — — — — Balance at end of period $ 495 $ 34 $ 5 $ 534 Individually evaluated for impairment $ 302 $ 27 $ — $ 329 Collectively evaluated for impairment 193 7 5 205 Ending Balance $ 495 $ 34 $ 5 $ 534 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 813 $ 78 $ — $ 891 Collectively evaluated for impairment 18,443 4,171 4,814 27,428 Ending Balance $ 19,256 $ 4,249 $ 4,814 $ 28,319 (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 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) March 31, 2019 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 $ 89 $ 18 $ 44 $ 151 $ 7,848 $ 7,999 $ 10 Europe 31 17 158 206 2,794 3,000 7 Asia/Pacific 28 13 12 53 2,950 3,003 8 Mining — — 20 20 1,663 1,683 10 Latin America 48 42 73 163 1,385 1,548 — Caterpillar Power Finance 14 8 365 387 1,636 2,023 2 Dealer North America — — — — 2,309 2,309 — Europe — — — — 574 574 — Asia/Pacific — — — — 566 566 — Mining — — — — 3 3 — Latin America 1 1 78 80 713 793 — Caterpillar Power Finance — — — — 4 4 — Caterpillar Purchased Receivables (1) North America 14 8 16 38 3,065 3,103 Europe 1 — 1 2 606 608 Asia/Pacific 6 2 1 9 761 770 Mining — — — — — — Latin America — — — — 328 328 Caterpillar Power Finance — — — — 5 5 Total $ 232 $ 109 $ 768 $ 1,109 $ 27,210 $ 28,319 $ 37 (1) Caterpillar Purchased Receivables are non-interest bearing trade receivables purchased at a discount. (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. 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 with a related allowance of $27 million and $14 million as of March 31, 2019 and December 31, 2018 , respectively, for the Dealer portfolio segment, all of which was in Latin America. There were no impaired finance receivables as of March 31, 2019 and December 31, 2018 , 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 March 31, 2019 As of December 31, 2018 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 9 $ 9 $ — $ 10 $ 10 $ — Europe 1 1 — 1 1 — Asia/Pacific — — — 1 1 — Mining 29 29 — 33 33 — Latin America 20 20 — 29 29 — Caterpillar Power Finance 48 48 — 69 83 — Total $ 107 $ 107 $ — $ 143 $ 157 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 41 $ 38 $ 16 $ 40 $ 41 $ 14 Europe 93 93 57 92 92 57 Asia/Pacific 9 9 3 4 4 2 Mining 32 31 14 56 55 26 Latin America 76 76 27 75 75 25 Caterpillar Power Finance 455 468 185 449 455 164 Total $ 706 $ 715 $ 302 $ 716 $ 722 $ 288 Total Impaired Finance Receivables North America $ 50 $ 47 $ 16 $ 50 $ 51 $ 14 Europe 94 94 57 93 93 57 Asia/Pacific 9 9 3 5 5 2 Mining 61 60 14 89 88 26 Latin America 96 96 27 104 104 25 Caterpillar Power Finance 503 516 185 518 538 164 Total $ 813 $ 822 $ 302 $ 859 $ 879 $ 288 (Millions of dollars) Three Months Ended Three Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 10 $ — $ 17 $ — Europe 1 — 36 — Asia/Pacific — — 32 1 Mining 31 — 103 1 Latin America 24 — 45 1 Caterpillar Power Finance 60 1 172 2 Total $ 126 $ 1 $ 405 $ 5 Impaired Finance Receivables With An Allowance Recorded North America $ 40 $ 1 $ 51 $ 1 Europe 94 1 19 — Asia/Pacific 7 — 7 — Mining 43 1 17 — Latin America 77 1 87 1 Caterpillar Power Finance 451 3 360 1 Total $ 712 $ 7 $ 541 $ 3 Total Impaired Finance Receivables North America $ 50 $ 1 $ 68 $ 1 Europe 95 1 55 — Asia/Pacific 7 — 39 1 Mining 74 1 120 1 Latin America 101 1 132 2 Caterpillar Power Finance 511 4 532 3 Total $ 838 $ 8 $ 946 $ 8 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 March 31, 2019 and December 31, 2018 , there were $78 million in finance receivables on non-accrual status for the Dealer portfolio segment. The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) March 31, December 31, North America $ 73 $ 77 Europe 171 154 Asia/Pacific 6 4 Mining 18 50 Latin America 118 106 Caterpillar Power Finance 442 416 Total $ 828 $ 807 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 March 31, 2019 and December 31, 2018 , there were no additional funds committed to lend to a borrower whose terms have been modified in a TDR. There were no finance receivables modified as TDRs during the three months ended March 31, 2019 and 2018 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America — $ — $ — 13 $ 6 $ 6 Europe 19 11 7 — — — Asia/Pacific — — — — — — Mining — — — 1 29 29 Latin America — — — 1 3 3 Caterpillar Power Finance 8 51 50 3 3 3 Total 27 $ 62 $ 57 18 $ 41 $ 41

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lessor Arrangements	Leases A. Lessor Arrangements We lease Caterpillar equipment, machinery, engines and other equipment to customers primarily through sales-type (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease. We also offer tax leases that are classified as either operating or direct finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, we are considered the owner of the equipment. Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. The residual values for leased assets, which are an estimate of the market value of leased equipment at the end of the lease term, 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. The residuals for leases classified as operating leases are included in Equipment on operating leases, net in the Consolidated Statements of Financial Position. The residuals for leases classified as finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position. 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. Contractual maturities for finance lease receivables (classified as sales-type and direct finance leases) were as follows: (Millions of dollars) March 31, 2019 Amounts due in Retail leases Wholesale leases Total Remaining nine months of 2019 $ 2,423 $ 22 $ 2,445 2020 2,303 21 2,324 2021 1,282 13 1,295 2022 564 6 570 2023 226 2 228 Thereafter 80 2 82 Total 6,878 66 6,944 Guaranteed residual value 396 39 435 Unguaranteed residual value 849 2 851 Unearned income (640 ) (6 ) (646 ) Total $ 7,483 $ 101 $ 7,584 (Millions of dollars) December 31, 2018 Amounts due in Retail leases Wholesale leases Total 2019 $ 3,024 $ 29 $ 3,053 2020 2,055 21 2,076 2021 1,092 12 1,104 2022 465 5 470 2023 171 2 173 Thereafter 62 2 64 Total 6,869 71 6,940 Guaranteed residual value 416 42 458 Unguaranteed residual value 854 3 857 Unearned income (640 ) (7 ) (647 ) Total $ 7,499 $ 109 $ 7,608 Our finance lease receivables generally may be repaid or refinanced without penalty prior to contractual maturity and we also sell finance lease 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. Components of equipment on operating leases, less accumulated depreciation, were as follows: (Millions of dollars) March 31, December 31, Equipment on operating leases, at cost $ 5,120 $ 5,201 Less: Accumulated depreciation (1,649 ) (1,639 ) Equipment on operating leases, net (1) $ 3,471 $ 3,562 (1) Includes $52 million and $45 million of operating leases with Caterpillar as of March 31, 2019 and December 31, 2018, respectively. The carrying amount of residual assets covered by residual value guarantees and subject to operating leases was $23 million and $25 million as of March 31, 2019 and December 31, 2018, respectively. At March 31, 2019 , payments due for operating leases were as follows: (Millions of dollars) Remaining Nine Months of 2019 2020 2021 2022 2023 Thereafter Total $ 629 $ 553 $ 294 $ 131 $ 52 $ 20 $ 1,679 At December 31, 2018, scheduled minimum rental payments for operating leases were as follows: (Millions of dollars) 2019 2020 2021 2022 2023 Thereafter Total $ 808 $ 503 $ 257 $ 115 $ 41 $ 15 $ 1,739 Revenue from finance and operating leases were as follows: (Millions of dollars) Three Months Ended Finance lease revenue (included in retail and wholesale finance revenue) $ 118 Operating lease revenue 258 Total $ 376 We typically pay property taxes on tax leases directly to the taxing authorities and invoice the lessee for reimbursement. These property tax reimbursements are accounted for as variable lease payments and are included in Operating lease revenues in the Consolidated Statements of Profit.
Lessee Arrangements	B. Lessee Arrangements We lease certain property, vehicles and other equipment primarily through operating leases. We recognize a lease liability and corresponding right-of-use asset based on the present value of lease payments. To determine the present value of lease payments for most of our leases, we use our incremental borrowing rate based on information available on the lease commencement date. We have elected to not separate payments for lease components from non-lease components for our lease asset classes. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we have included the option in the recognition of right-of-use assets and lease liabilities. Our variable lease costs primarily include maintenance, taxes and insurance. We have elected not to recognize right-of-use assets or lease liabilities for leases that qualify for the short-term lease recognition exemption (leases with a term of twelve months or less). The components of lease cost were as follows: (Millions of dollars) Three Months Ended Operating lease cost $ 2 Short-term lease cost $ — Variable lease cost $ — Supplemental information related to operating leases was as follows: (Millions of dollars) Consolidated Statements of Financial Position Location March 31, January 1, Right-of-use assets Other assets $ 21 $ 22 Lease liabilities Other liabilities $ 21 $ 23 Weighted average remaining lease term 4 years 4 years Weighted average discount rate 2.6 % 2.6 % At March 31, 2019 , maturities of operating lease liabilities were as follows: (Millions of dollars) Remaining nine months of 2019 $ 6 2020 6 2021 4 2022 2 2023 2 Thereafter 2 Total lease payments 22 Less: imputed interest (1 ) Total $ 21 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 Supplemental cash flow information related to operating leases was as follows: (Millions of dollars) Three Months Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 2 Right-of-use assets obtained in exchange for new operating lease obligations $ 23

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	3 Months Ended
	Mar. 31, 2019
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 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 March 31, 2019 , $1 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statements of Financial Position), related to our floating-to-fixed interest rate contracts, are expected to be reclassified to Interest expense over the next twelve months. The actual amount recorded in Interest expense will vary based on interest rates at the time the hedged transactions impact earnings. We have, at certain times, liquidated fixed-to-floating interest rate contracts that resulted in deferred gains at the time of liquidation. The deferred gains associated with these interest rate contracts are included in Long-term debt in the Consolidated Statements of Financial Position and are being amortized to Interest expense over the remaining term of the previously designated hedged item. The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of Financial Position Location March 31, December 31, Designated derivatives Interest rate contracts Other assets $ 3 $ 4 Interest rate contracts Accrued expenses (58 ) (40 ) Cross currency contracts Other assets 88 88 Cross currency contracts Accrued expenses (5 ) (9 ) $ 28 $ 43 Undesignated derivatives Foreign exchange contracts Other assets $ 9 $ 15 Foreign exchange contracts Accrued expenses (12 ) (12 ) Cross currency contracts Other assets 6 5 Cross currency contracts Accrued expenses (1 ) (2 ) $ 2 $ 6 The total notional amount of our derivative instruments was $9.00 billion and $10.21 billion as of March 31, 2019 and December 31, 2018 , 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: Cash Flow Hedges (Millions of dollars) Three Months Ended March 31, 2019 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI Classification Reclassified from AOCI to Earnings Amount of the line items in the Consolidated Statements of Profit Interest rate contracts $ (26 ) Interest expense $ 1 $ (201 ) Cross currency contracts 22 Other income (expense) 6 (4 ) Interest expense 7 (201 ) $ (4 ) $ 14 Three Months Ended March 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 $ — Interest expense $ 1 $ — Cross currency contracts (33 ) Other income (expense) (29 ) — Interest expense 3 — $ (33 ) $ (25 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended March 31, Classification 2019 2018 Foreign exchange contracts Other income (expense) $ (29 ) $ (7 ) Cross currency contracts Other income (expense) — — $ (29 ) $ (7 ) 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 March 31, 2019 and December 31, 2018 , no cash collateral was received or pledged under the master netting agreements. The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) March 31, December 31, Derivative Assets Gross Amount of Recognized Assets $ 106 $ 112 Gross Amounts Offset — — Net Amount of Assets (1) 106 112 Gross Amounts Not Offset (22 ) (34 ) Net Amount $ 84 $ 78 Derivative Liabilities Gross Amount of Recognized Liabilities $ (76 ) $ (63 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (76 ) (63 ) Gross Amounts Not Offset 22 34 Net Amount $ (54 ) $ (29 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	3 Months Ended
	Mar. 31, 2019
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 Three Months Ended March 31, 2018 Balance at December 31, 2017 $ (587 ) $ (5 ) $ (592 ) Other comprehensive income/(loss) before reclassifications 65 (26 ) 39 Amounts reclassified from accumulated other comprehensive (income)/loss — 20 20 Other comprehensive income/(loss) 65 (6 ) 59 Balance at March 31, 2018 $ (522 ) $ (11 ) $ (533 ) Three Months Ended March 31, 2019 Balance at December 31, 2018 $ (889 ) $ (36 ) $ (925 ) Other comprehensive income/(loss) before reclassifications 13 (3 ) 10 Amounts reclassified from accumulated other comprehensive (income)/loss — (11 ) (11 ) Adjustment to adopt new accounting guidance (1) 98 (1 ) 97 Other comprehensive income/(loss) 111 (15 ) 96 Balance at March 31, 2019 $ (778 ) $ (51 ) $ (829 ) (1) See Note 2 regarding new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income/(loss). The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Derivative financial instruments Classification of income (expense) 2019 2018 Cross currency contracts Other income (expense) $ 6 $ (29 ) Cross currency contracts Interest expense 7 3 Interest rate contracts Interest expense 1 1 Reclassifications before tax 14 (25 ) Tax (provision) benefit (3 ) 5 Total reclassifications from Accumulated other comprehensive income/(loss) $ 11 $ (20 )

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Segment Information	Segment Information A. Basis for Segment Information We report information internally for operating segments based on management responsibility. Our operating segments offer financing to customers and dealers for the purchase and lease of Caterpillar and other equipment, as well as financing for Caterpillar sales to dealers. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans within each of the respective segments. B. Description of Segments We have six operating segments that offer financing services. Following is a brief description of our segments: • North America - Includes our operations in the United States and Canada. • Europe - Includes our operations in Europe, Africa, the Middle East and the Commonwealth of Independent States. • Asia/Pacific - Includes our operations in Australia, New Zealand, China, Japan, 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. 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 8 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 three months ended March 31 was as follows: (Millions of dollars) 2019 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at March 31, 2019 Capital expenditures North America $ 401 $ 116 $ 97 $ 144 $ 7 $ 15,677 $ 179 Europe 72 24 14 17 (1 ) 4,800 23 Asia/Pacific 94 42 30 3 3 4,756 6 Latin America 60 3 23 6 16 2,923 2 Caterpillar Power Finance 29 (16 ) 13 — 26 1,964 — Mining 69 12 14 32 2 2,230 33 Total Segments 725 181 191 202 53 32,350 243 Unallocated 19 (83 ) 64 — — 1,952 3 Timing (8 ) (5 ) — — — 25 — Methodology — 49 (54 ) — — (176 ) — Inter-segment Eliminations (1) — — — — — (327 ) — Total $ 736 $ 142 $ 201 $ 202 $ 53 $ 33,824 $ 246 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 $ 361 $ 95 $ 82 $ 135 $ 17 $ 15,632 $ 210 Europe 68 7 10 20 11 4,862 14 Asia/Pacific 82 40 25 6 (4 ) 4,639 4 Latin America 69 4 29 7 12 2,972 8 Caterpillar Power Finance 34 (3 ) 12 1 18 2,259 — Mining 62 5 15 30 6 2,234 33 Total Segments 676 148 173 199 60 32,598 269 Unallocated 22 (67 ) 58 — — 1,957 92 Timing (8 ) (3 ) — — 7 55 — Methodology — 46 (57 ) — — (159 ) — Inter-segment Eliminations (1) — — — — — (270 ) — Total $ 690 $ 124 $ 174 $ 199 $ 67 $ 34,181 $ 361 (1) Elimination is primarily related to intercompany loans.

Guarantees

Guarantees	3 Months Ended
	Mar. 31, 2019
Guarantees [Abstract]
Guarantees	Guarantees We provide loan guarantees to third-party lenders for financing associated with machinery purchased by customers. These guarantees have varying terms and are secured by the machinery being financed. We also provide residual value guarantees to third-party lenders associated with machinery leased to customers. These guarantees have varying terms. In addition, we participate in standby letters of credit issued to third parties on behalf of our customers. These standby letters of credit have varying terms and beneficiaries and are secured by customer assets. No significant loss has been experienced or is anticipated under any of these guarantees. At March 31, 2019 and December 31, 2018 , the related recorded liability was $3 million and less than $1 million, respectively. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was $103 million and $97 million at March 31, 2019 and December 31, 2018 , 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 March 31, 2019 and December 31, 2018 , the SPC’s assets of $1.17 billion and $1.15 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 $1.17 billion and $1.15 billion , respectively, were primarily comprised of commercial paper, which is included in Short-term borrowings in the Consolidated Statements of Financial Position. The assets of the SPC are not available to pay our creditors. We may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
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 standard industry accepted valuation models that discount 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 $30 million and $49 million as of March 31, 2019 and December 31, 2018 , respectively. Impaired loans Our impaired loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is considered impaired when management determines that collection of contractual amounts due is not probable. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We had impaired loans carried at the fair value of $426 million and $469 million as of March 31, 2019 and December 31, 2018 , 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) March 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 658 $ 658 $ 766 $ 766 1 Restricted cash and cash equivalents (2) $ 4 $ 4 $ 7 $ 7 1 Finance receivables, net (excluding finance leases (1) ) $ 20,281 $ 20,392 $ 20,451 $ 20,510 3 Note 3 Interest rate contracts: In a receivable position $ 3 $ 3 $ 4 $ 4 2 Note 5 In a payable position $ (58 ) $ (58 ) $ (40 ) $ (40 ) 2 Note 5 Cross currency contracts: In a receivable position $ 94 $ 94 $ 93 $ 93 2 Note 5 In a payable position $ (6 ) $ (6 ) $ (11 ) $ (11 ) 2 Note 5 Foreign exchange contracts: In a receivable position $ 9 $ 9 $ 15 $ 15 2 Note 5 In a payable position $ (12 ) $ (12 ) $ (12 ) $ (12 ) 2 Note 5 Short-term borrowings $ (5,586 ) $ (5,586 ) $ (5,723 ) $ (5,723 ) 1 Long-term debt $ (22,529 ) $ (22,633 ) $ (22,815 ) $ (22,684 ) 2 Guarantees $ (3 ) $ (3 ) $ — $ — 3 Note 8 (1) Represents finance leases and failed sale leasebacks of $7.50 billion as of March 31, 2019 and finance leases of $7.47 billion as of December 31, 2018 . (2) Included in Other assets in the Consolidated Statements of Financial Position.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies We are involved in unresolved legal actions that arise in the normal course of business. Although it is not possible to predict with certainty the outcome of our unresolved legal actions, we believe that these unresolved legal actions will neither individually nor in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes reflects an estimated annual tax rate of 27 percent in the first quarter of 2019 , compared with 23 percent in the first quarter of 2018 . The increase in the estimated annual tax rate is primarily due to changes in the geographic mix of profits.

Finance Receivables (Tables)

Finance Receivables (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Summary of finance receivables included in the Consolidated Statements of Financial Position	A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) March 31, December 31, Retail loans, net (1) $ 15,207 $ 15,509 Retail leases, net (2) 7,483 7,499 Caterpillar purchased receivables, net 4,814 4,691 Wholesale loans, net (1) 714 626 Wholesale leases, net 101 109 Recorded investment in finance receivables 28,319 28,434 Less: Allowance for credit losses (534 ) (511 ) Total finance receivables, net $ 27,785 $ 27,923 (1) Includes failed sale leasebacks. (2) Includes $9 million of finance leases with Caterpillar as of March 31, 2019 and December 31, 2018.
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) March 31, 2019 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 486 $ 21 $ 4 $ 511 Receivables written off (38 ) — — (38 ) Recoveries on receivables previously written off 8 — — 8 Provision for credit losses 39 13 1 53 Adjustment due to sale of receivables — — — — Foreign currency translation adjustment — — — — Balance at end of period $ 495 $ 34 $ 5 $ 534 Individually evaluated for impairment $ 302 $ 27 $ — $ 329 Collectively evaluated for impairment 193 7 5 205 Ending Balance $ 495 $ 34 $ 5 $ 534 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 813 $ 78 $ — $ 891 Collectively evaluated for impairment 18,443 4,171 4,814 27,428 Ending Balance $ 19,256 $ 4,249 $ 4,814 $ 28,319 (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
Aging related to finance receivables	The tables below summarize our recorded investment in finance receivables by aging category. (Millions of dollars) March 31, 2019 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 $ 89 $ 18 $ 44 $ 151 $ 7,848 $ 7,999 $ 10 Europe 31 17 158 206 2,794 3,000 7 Asia/Pacific 28 13 12 53 2,950 3,003 8 Mining — — 20 20 1,663 1,683 10 Latin America 48 42 73 163 1,385 1,548 — Caterpillar Power Finance 14 8 365 387 1,636 2,023 2 Dealer North America — — — — 2,309 2,309 — Europe — — — — 574 574 — Asia/Pacific — — — — 566 566 — Mining — — — — 3 3 — Latin America 1 1 78 80 713 793 — Caterpillar Power Finance — — — — 4 4 — Caterpillar Purchased Receivables (1) North America 14 8 16 38 3,065 3,103 Europe 1 — 1 2 606 608 Asia/Pacific 6 2 1 9 761 770 Mining — — — — — — Latin America — — — — 328 328 Caterpillar Power Finance — — — — 5 5 Total $ 232 $ 109 $ 768 $ 1,109 $ 27,210 $ 28,319 $ 37 (1) Caterpillar Purchased Receivables are non-interest bearing trade receivables purchased at a discount. (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.
Impaired finance receivables	Our recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: (Millions of dollars) As of March 31, 2019 As of December 31, 2018 Impaired Finance Receivables With No Allowance Recorded Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance North America $ 9 $ 9 $ — $ 10 $ 10 $ — Europe 1 1 — 1 1 — Asia/Pacific — — — 1 1 — Mining 29 29 — 33 33 — Latin America 20 20 — 29 29 — Caterpillar Power Finance 48 48 — 69 83 — Total $ 107 $ 107 $ — $ 143 $ 157 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 41 $ 38 $ 16 $ 40 $ 41 $ 14 Europe 93 93 57 92 92 57 Asia/Pacific 9 9 3 4 4 2 Mining 32 31 14 56 55 26 Latin America 76 76 27 75 75 25 Caterpillar Power Finance 455 468 185 449 455 164 Total $ 706 $ 715 $ 302 $ 716 $ 722 $ 288 Total Impaired Finance Receivables North America $ 50 $ 47 $ 16 $ 50 $ 51 $ 14 Europe 94 94 57 93 93 57 Asia/Pacific 9 9 3 5 5 2 Mining 61 60 14 89 88 26 Latin America 96 96 27 104 104 25 Caterpillar Power Finance 503 516 185 518 538 164 Total $ 813 $ 822 $ 302 $ 859 $ 879 $ 288 (Millions of dollars) Three Months Ended Three Months Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 10 $ — $ 17 $ — Europe 1 — 36 — Asia/Pacific — — 32 1 Mining 31 — 103 1 Latin America 24 — 45 1 Caterpillar Power Finance 60 1 172 2 Total $ 126 $ 1 $ 405 $ 5 Impaired Finance Receivables With An Allowance Recorded North America $ 40 $ 1 $ 51 $ 1 Europe 94 1 19 — Asia/Pacific 7 — 7 — Mining 43 1 17 — Latin America 77 1 87 1 Caterpillar Power Finance 451 3 360 1 Total $ 712 $ 7 $ 541 $ 3 Total Impaired Finance Receivables North America $ 50 $ 1 $ 68 $ 1 Europe 95 1 55 — Asia/Pacific 7 — 39 1 Mining 74 1 120 1 Latin America 101 1 132 2 Caterpillar Power Finance 511 4 532 3 Total $ 838 $ 8 $ 946 $ 8
Recorded investment in customer finance receivables on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status was as follows: (Millions of dollars) March 31, December 31, North America $ 73 $ 77 Europe 171 154 Asia/Pacific 6 4 Mining 18 50 Latin America 118 106 Caterpillar Power Finance 442 416 Total $ 828 $ 807
Finance receivables modified as TDRs	Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Dollars in millions) Three Months Ended Three Months Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America — $ — $ — 13 $ 6 $ 6 Europe 19 11 7 — — — Asia/Pacific — — — — — — Mining — — — 1 29 29 Latin America — — — 1 3 3 Caterpillar Power Finance 8 51 50 3 3 3 Total 27 $ 62 $ 57 18 $ 41 $ 41

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Contractual maturities for finance lease receivables (classified as sales-type and direct finance leases)	Contractual maturities for finance lease receivables (classified as sales-type and direct finance leases) were as follows: (Millions of dollars) March 31, 2019 Amounts due in Retail leases Wholesale leases Total Remaining nine months of 2019 $ 2,423 $ 22 $ 2,445 2020 2,303 21 2,324 2021 1,282 13 1,295 2022 564 6 570 2023 226 2 228 Thereafter 80 2 82 Total 6,878 66 6,944 Guaranteed residual value 396 39 435 Unguaranteed residual value 849 2 851 Unearned income (640 ) (6 ) (646 ) Total $ 7,483 $ 101 $ 7,584 (Millions of dollars) December 31, 2018 Amounts due in Retail leases Wholesale leases Total 2019 $ 3,024 $ 29 $ 3,053 2020 2,055 21 2,076 2021 1,092 12 1,104 2022 465 5 470 2023 171 2 173 Thereafter 62 2 64 Total 6,869 71 6,940 Guaranteed residual value 416 42 458 Unguaranteed residual value 854 3 857 Unearned income (640 ) (7 ) (647 ) Total $ 7,499 $ 109 $ 7,608
Components of equipment on operating leases, less accumulated depreciation	Components of equipment on operating leases, less accumulated depreciation, were as follows: (Millions of dollars) March 31, December 31, Equipment on operating leases, at cost $ 5,120 $ 5,201 Less: Accumulated depreciation (1,649 ) (1,639 ) Equipment on operating leases, net (1) $ 3,471 $ 3,562 (1) Includes $52 million and $45 million of operating leases with Caterpillar as of March 31, 2019 and December 31, 2018, respectively.
Schedule of payments due for operating leases	At March 31, 2019 , payments due for operating leases were as follows: (Millions of dollars) Remaining Nine Months of 2019 2020 2021 2022 2023 Thereafter Total $ 629 $ 553 $ 294 $ 131 $ 52 $ 20 $ 1,679
Scheduled minimum rental payments for operating leases	At December 31, 2018, scheduled minimum rental payments for operating leases were as follows: (Millions of dollars) 2019 2020 2021 2022 2023 Thereafter Total $ 808 $ 503 $ 257 $ 115 $ 41 $ 15 $ 1,739
Revenue from finance and operating leases	Revenue from finance and operating leases were as follows: (Millions of dollars) Three Months Ended Finance lease revenue (included in retail and wholesale finance revenue) $ 118 Operating lease revenue 258 Total $ 376
Components of lease cost	The components of lease cost were as follows: (Millions of dollars) Three Months Ended Operating lease cost $ 2 Short-term lease cost $ — Variable lease cost $ —
Supplemental information related to operating leases	Supplemental information related to operating leases was as follows: (Millions of dollars) Consolidated Statements of Financial Position Location March 31, January 1, Right-of-use assets Other assets $ 21 $ 22 Lease liabilities Other liabilities $ 21 $ 23 Weighted average remaining lease term 4 years 4 years Weighted average discount rate 2.6 % 2.6 %
Maturities of operating lease liabilities	At March 31, 2019 , maturities of operating lease liabilities were as follows: (Millions of dollars) Remaining nine months of 2019 $ 6 2020 6 2021 4 2022 2 2023 2 Thereafter 2 Total lease payments 22 Less: imputed interest (1 ) Total $ 21
Schedule of 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
Supplemental cash flow information related to operating leases	Supplemental cash flow information related to operating leases was as follows: (Millions of dollars) Three Months Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 2 Right-of-use assets obtained in exchange for new operating lease obligations $ 23

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)	3 Months Ended
	Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position	The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of Financial Position Location March 31, December 31, Designated derivatives Interest rate contracts Other assets $ 3 $ 4 Interest rate contracts Accrued expenses (58 ) (40 ) Cross currency contracts Other assets 88 88 Cross currency contracts Accrued expenses (5 ) (9 ) $ 28 $ 43 Undesignated derivatives Foreign exchange contracts Other assets $ 9 $ 15 Foreign exchange contracts Accrued expenses (12 ) (12 ) Cross currency contracts Other assets 6 5 Cross currency contracts Accrued expenses (1 ) (2 ) $ 2 $ 6
Schedule of effect of derivatives designated as cash flow hedging instruments in the Consolidated Statements of Profit	The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Cash Flow Hedges (Millions of dollars) Three Months Ended March 31, 2019 Recognized in Earnings Amounts of Gains (Losses) Recognized in AOCI Classification Reclassified from AOCI to Earnings Amount of the line items in the Consolidated Statements of Profit Interest rate contracts $ (26 ) Interest expense $ 1 $ (201 ) Cross currency contracts 22 Other income (expense) 6 (4 ) Interest expense 7 (201 ) $ (4 ) $ 14 Three Months Ended March 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 $ — Interest expense $ 1 $ — Cross currency contracts (33 ) Other income (expense) (29 ) — Interest expense 3 — $ (33 ) $ (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: (Millions of dollars) Three Months Ended March 31, Classification 2019 2018 Foreign exchange contracts Other income (expense) $ (29 ) $ (7 ) Cross currency contracts Other income (expense) — — $ (29 ) $ (7 )
Schedule of offsetting of derivative assets and liabilities	The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: Offsetting of Derivative Assets and Liabilities (Millions of dollars) March 31, December 31, Derivative Assets Gross Amount of Recognized Assets $ 106 $ 112 Gross Amounts Offset — — Net Amount of Assets (1) 106 112 Gross Amounts Not Offset (22 ) (34 ) Net Amount $ 84 $ 78 Derivative Liabilities Gross Amount of Recognized Liabilities $ (76 ) $ (63 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (76 ) (63 ) Gross Amounts Not Offset 22 34 Net Amount $ (54 ) $ (29 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income/(Loss) (Tables)	3 Months Ended
	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated other comprehensive income/(loss)	Changes in Accumulated other comprehensive income/(loss), net of tax, included in the Consolidated Statements of Changes in Shareholder's Equity, consisted of the following: (Millions of dollars) Foreign currency translation Derivative financial instruments Total Three Months Ended March 31, 2018 Balance at December 31, 2017 $ (587 ) $ (5 ) $ (592 ) Other comprehensive income/(loss) before reclassifications 65 (26 ) 39 Amounts reclassified from accumulated other comprehensive (income)/loss — 20 20 Other comprehensive income/(loss) 65 (6 ) 59 Balance at March 31, 2018 $ (522 ) $ (11 ) $ (533 ) Three Months Ended March 31, 2019 Balance at December 31, 2018 $ (889 ) $ (36 ) $ (925 ) Other comprehensive income/(loss) before reclassifications 13 (3 ) 10 Amounts reclassified from accumulated other comprehensive (income)/loss — (11 ) (11 ) Adjustment to adopt new accounting guidance (1) 98 (1 ) 97 Other comprehensive income/(loss) 111 (15 ) 96 Balance at March 31, 2019 $ (778 ) $ (51 ) $ (829 ) (1) See Note 2 regarding new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income/(loss).
Reclassifications out of Accumulated other comprehensive income/(loss)	The effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Derivative financial instruments Classification of income (expense) 2019 2018 Cross currency contracts Other income (expense) $ 6 $ (29 ) Cross currency contracts Interest expense 7 3 Interest rate contracts Interest expense 1 1 Reclassifications before tax 14 (25 ) Tax (provision) benefit (3 ) 5 Total reclassifications from Accumulated other comprehensive income/(loss) $ 11 $ (20 )

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the three months ended March 31 was as follows: (Millions of dollars) 2019 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at March 31, 2019 Capital expenditures North America $ 401 $ 116 $ 97 $ 144 $ 7 $ 15,677 $ 179 Europe 72 24 14 17 (1 ) 4,800 23 Asia/Pacific 94 42 30 3 3 4,756 6 Latin America 60 3 23 6 16 2,923 2 Caterpillar Power Finance 29 (16 ) 13 — 26 1,964 — Mining 69 12 14 32 2 2,230 33 Total Segments 725 181 191 202 53 32,350 243 Unallocated 19 (83 ) 64 — — 1,952 3 Timing (8 ) (5 ) — — — 25 — Methodology — 49 (54 ) — — (176 ) — Inter-segment Eliminations (1) — — — — — (327 ) — Total $ 736 $ 142 $ 201 $ 202 $ 53 $ 33,824 $ 246 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 $ 361 $ 95 $ 82 $ 135 $ 17 $ 15,632 $ 210 Europe 68 7 10 20 11 4,862 14 Asia/Pacific 82 40 25 6 (4 ) 4,639 4 Latin America 69 4 29 7 12 2,972 8 Caterpillar Power Finance 34 (3 ) 12 1 18 2,259 — Mining 62 5 15 30 6 2,234 33 Total Segments 676 148 173 199 60 32,598 269 Unallocated 22 (67 ) 58 — — 1,957 92 Timing (8 ) (3 ) — — 7 55 — Methodology — 46 (57 ) — — (159 ) — Inter-segment Eliminations (1) — — — — — (270 ) — Total $ 690 $ 124 $ 174 $ 199 $ 67 $ 34,181 $ 361 (1) Elimination is primarily related to intercompany loans.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
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) March 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 658 $ 658 $ 766 $ 766 1 Restricted cash and cash equivalents (2) $ 4 $ 4 $ 7 $ 7 1 Finance receivables, net (excluding finance leases (1) ) $ 20,281 $ 20,392 $ 20,451 $ 20,510 3 Note 3 Interest rate contracts: In a receivable position $ 3 $ 3 $ 4 $ 4 2 Note 5 In a payable position $ (58 ) $ (58 ) $ (40 ) $ (40 ) 2 Note 5 Cross currency contracts: In a receivable position $ 94 $ 94 $ 93 $ 93 2 Note 5 In a payable position $ (6 ) $ (6 ) $ (11 ) $ (11 ) 2 Note 5 Foreign exchange contracts: In a receivable position $ 9 $ 9 $ 15 $ 15 2 Note 5 In a payable position $ (12 ) $ (12 ) $ (12 ) $ (12 ) 2 Note 5 Short-term borrowings $ (5,586 ) $ (5,586 ) $ (5,723 ) $ (5,723 ) 1 Long-term debt $ (22,529 ) $ (22,633 ) $ (22,815 ) $ (22,684 ) 2 Guarantees $ (3 ) $ (3 ) $ — $ — 3 Note 8 (1) Represents finance leases and failed sale leasebacks of $7.50 billion as of March 31, 2019 and finance leases of $7.47 billion as of December 31, 2018 . (2) Included in Other assets in the Consolidated Statements of Financial Position.

New Accounting Pronouncements (

New Accounting Pronouncements (Details) $ in Millions	Jan. 01, 2019USD ($)
Accounting Standards Update 2018-02
New Accounting Pronouncements or Change in Accounting Principle
Amount, Reclassification of certain tax effects from AOCI	$ 97

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	$ 28,319	$ 28,434
Less: Allowance for credit losses	(534)	(511)	$ (365)
Total finance receivables, net	27,785	27,923
Retail loans
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	15,207	15,509
Retail leases
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	7,483	7,499
Caterpillar Purchased Receivables
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	4,814	4,691
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	714	626
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	101	109
Caterpillar | Retail leases
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	$ 9	$ 9

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	$ 511	$ 365	$ 534	$ 511
Allowance for credit losses as a percent of our recorded investment in finance receivables			1.89%	1.80%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	511	365
Receivables written off	(38)	(235)
Recoveries on receivables previously written off	8	46
Provision for credit losses	53	350
Adjustment due to sale of receivables	0	(7)
Foreign currency translation adjustment	0	(8)
Balance at end of period	534	511
Allowance for Credit Losses
Individually evaluated for impairment			$ 329	$ 302
Collectively evaluated for impairment			205	209
Allowance, Ending Balance	511	365	534	511
Recorded Investment in Finance Receivables
Individually evaluated for impairment			891	937
Collectively evaluated for impairment			27,428	27,497
Recorded Investment in Finance Receivables, Ending Balance			28,319	28,434
Customer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	486	353	495	486
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	486	353
Receivables written off	(38)	(235)
Recoveries on receivables previously written off	8	46
Provision for credit losses	39	337
Adjustment due to sale of receivables	0	(7)
Foreign currency translation adjustment	0	(8)
Balance at end of period	495	486
Allowance for Credit Losses
Individually evaluated for impairment			302	288
Collectively evaluated for impairment			193	198
Allowance, Ending Balance	486	353	495	486
Recorded Investment in Finance Receivables
Individually evaluated for impairment			813	859
Collectively evaluated for impairment			18,443	18,724
Recorded Investment in Finance Receivables, Ending Balance			19,256	19,583
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	21	9	34	21
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	21	9
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	13	12
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	34	21
Allowance for Credit Losses
Individually evaluated for impairment			27	14
Collectively evaluated for impairment			7	7
Allowance, Ending Balance	21	9	34	21
Recorded Investment in Finance Receivables
Individually evaluated for impairment			78	78
Collectively evaluated for impairment			4,171	4,082
Recorded Investment in Finance Receivables, Ending Balance			4,249	4,160
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	4	3	5	4
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	4	3
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	1	1
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of period	5	4
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			5	4
Allowance, Ending Balance	$ 4	$ 3	5	4
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,814	4,691
Recorded Investment in Finance Receivables, Ending Balance			$ 4,814	$ 4,691

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 1,109	$ 1,100
Current	27,210	27,334
Recorded Investment in Finance Receivables	28,319	28,434
91 Plus, Still Accruing	37	24
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	232	213
61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	109	80
91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	768	807
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,256	19,583
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	151	167
Current	7,848	7,883
Recorded Investment in Finance Receivables	7,999	8,050
91 Plus, Still Accruing	10	14
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	89	65
Customer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	18	18
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	44	84
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	206	181
Current	2,794	2,850
Recorded Investment in Finance Receivables	3,000	3,031
91 Plus, Still Accruing	7	5
Customer | Europe | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	31	19
Customer | Europe | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	17	9
Customer | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	158	153
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	53	42
Current	2,950	2,923
Recorded Investment in Finance Receivables	3,003	2,965
91 Plus, Still Accruing	8	5
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	28	25
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	13	9
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	12	8
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	20	38
Current	1,663	1,642
Recorded Investment in Finance Receivables	1,683	1,680
91 Plus, Still Accruing	10	0
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	28
Customer | Mining | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	1
Customer | Mining | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	20	9
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	163	138
Current	1,385	1,421
Recorded Investment in Finance Receivables	1,548	1,559
91 Plus, Still Accruing	0	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	48	38
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	42	29
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	73	71
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	387	395
Current	1,636	1,903
Recorded Investment in Finance Receivables	2,023	2,298
91 Plus, Still Accruing	2	0
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	14	10
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	8	1
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	365	384
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,249	4,160
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,309	2,210
Recorded Investment in Finance Receivables	2,309	2,210
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	574	619
Recorded Investment in Finance Receivables	574	619
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	566	514
Recorded Investment in Finance Receivables	566	514
91 Plus, Still Accruing	0	0
Dealer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	3	4
Recorded Investment in Finance Receivables	3	4
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	80	78
Current	713	731
Recorded Investment in Finance Receivables	793	809
91 Plus, Still Accruing	0	0
Dealer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	0
Dealer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	0
Dealer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	78	78
Dealer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	4	4
Recorded Investment in Finance Receivables	4	4
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	4,814	4,691
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	38	52
Current	3,065	2,982
Recorded Investment in Finance Receivables	3,103	3,034
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	14	22
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	8	12
Caterpillar Purchased Receivables | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	16	18
Caterpillar Purchased Receivables | Europe
Financing Receivable, Recorded Investment, Past Due
Past Due	2	2
Current	606	546
Recorded Investment in Finance Receivables	608	548
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	0
Caterpillar Purchased Receivables | Europe | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	1
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	9	7
Current	761	756
Recorded Investment in Finance Receivables	770	763
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	6	5
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	2	1
Caterpillar Purchased Receivables | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	1
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	328	338
Recorded Investment in Finance Receivables	328	338
Caterpillar Purchased Receivables | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	5	8
Recorded Investment in Finance Receivables	5	8
Caterpillar Purchased Receivables | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 0	$ 0

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Receivables [Abstract]
Period after which collection of future income is considered as not probable	120 days
Customer
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	$ 107		$ 143
Unpaid Principal Balance With No Allowance Recorded	107		157
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	706		716
Unpaid Principal Balance With An Allowance Recorded	715		722
Related Allowance With An Allowance Recorded	302		288
Recorded Investment, Total	813		859
Unpaid Principal Balance, Total	822		879
Related Allowance, Total	302		288
Average Recorded Investment With No Allowance Recorded	126	$ 405
Interest Income Recognized With No Allowance Recorded	1	5
Average Recorded Investment With An Allowance Recorded	712	541
Interest Income Recognized With An Allowance Recorded	7	3
Average Recorded Investment, Total	838	946
Interest Income Recognized, Total	8	8
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	9		10
Unpaid Principal Balance With No Allowance Recorded	9		10
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	41		40
Unpaid Principal Balance With An Allowance Recorded	38		41
Related Allowance With An Allowance Recorded	16		14
Recorded Investment, Total	50		50
Unpaid Principal Balance, Total	47		51
Related Allowance, Total	16		14
Average Recorded Investment With No Allowance Recorded	10	17
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	40	51
Interest Income Recognized With An Allowance Recorded	1	1
Average Recorded Investment, Total	50	68
Interest Income Recognized, Total	1	1
Customer | Europe
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	1		1
Unpaid Principal Balance With No Allowance Recorded	1		1
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	93		92
Unpaid Principal Balance With An Allowance Recorded	93		92
Related Allowance With An Allowance Recorded	57		57
Recorded Investment, Total	94		93
Unpaid Principal Balance, Total	94		93
Related Allowance, Total	57		57
Average Recorded Investment With No Allowance Recorded	1	36
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	94	19
Interest Income Recognized With An Allowance Recorded	1	0
Average Recorded Investment, Total	95	55
Interest Income Recognized, Total	1	0
Customer | Asia/Pacific
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	0		1
Unpaid Principal Balance With No Allowance Recorded	0		1
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	9		4
Unpaid Principal Balance With An Allowance Recorded	9		4
Related Allowance With An Allowance Recorded	3		2
Recorded Investment, Total	9		5
Unpaid Principal Balance, Total	9		5
Related Allowance, Total	3		2
Average Recorded Investment With No Allowance Recorded	0	32
Interest Income Recognized With No Allowance Recorded	0	1
Average Recorded Investment With An Allowance Recorded	7	7
Interest Income Recognized With An Allowance Recorded	0	0
Average Recorded Investment, Total	7	39
Interest Income Recognized, Total	0	1
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	29		33
Unpaid Principal Balance With No Allowance Recorded	29		33
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	32		56
Unpaid Principal Balance With An Allowance Recorded	31		55
Related Allowance With An Allowance Recorded	14		26
Recorded Investment, Total	61		89
Unpaid Principal Balance, Total	60		88
Related Allowance, Total	14		26
Average Recorded Investment With No Allowance Recorded	31	103
Interest Income Recognized With No Allowance Recorded	0	1
Average Recorded Investment With An Allowance Recorded	43	17
Interest Income Recognized With An Allowance Recorded	1	0
Average Recorded Investment, Total	74	120
Interest Income Recognized, Total	1	1
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	20		29
Unpaid Principal Balance With No Allowance Recorded	20		29
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	76		75
Unpaid Principal Balance With An Allowance Recorded	76		75
Related Allowance With An Allowance Recorded	27		25
Recorded Investment, Total	96		104
Unpaid Principal Balance, Total	96		104
Related Allowance, Total	27		25
Average Recorded Investment With No Allowance Recorded	24	45
Interest Income Recognized With No Allowance Recorded	0	1
Average Recorded Investment With An Allowance Recorded	77	87
Interest Income Recognized With An Allowance Recorded	1	1
Average Recorded Investment, Total	101	132
Interest Income Recognized, Total	1	2
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	48		69
Unpaid Principal Balance With No Allowance Recorded	48		83
Related Allowance With No Allowance Recorded	0		0
Recorded Investment With An Allowance Recorded	455		449
Unpaid Principal Balance With An Allowance Recorded	468		455
Related Allowance With An Allowance Recorded	185		164
Recorded Investment, Total	503		518
Unpaid Principal Balance, Total	516		538
Related Allowance, Total	185		164
Average Recorded Investment With No Allowance Recorded	60	172
Interest Income Recognized With No Allowance Recorded	1	2
Average Recorded Investment With An Allowance Recorded	451	360
Interest Income Recognized With An Allowance Recorded	3	1
Average Recorded Investment, Total	511	532
Interest Income Recognized, Total	4	$ 3
Dealer | Latin America
Financing Receivable, Impaired
Related Allowance With An Allowance Recorded	27		14
Recorded Investment, Total	78		78
Related Allowance, Total	27		14
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	$ 0		$ 0

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 828	$ 807
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	73	77
Customer | Europe
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	171	154
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	6	4
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	18	50
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	118	106
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	442	416
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 78	$ 78

Finance Receivables (Details 6)

Finance Receivables (Details 6) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)contracts	Mar. 31, 2018USD ($)contracts	Dec. 31, 2018USD ($)
Financing Receivable, Modifications
Remaining commitments	$ 0		$ 0
Finance receivables modified as TDRs
Number of Contracts | contracts	27	18
Pre-TDR Recorded Investment	$ 62	$ 41
Post-TDR Recorded Investment	$ 57	$ 41
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	0	13
Pre-TDR Recorded Investment	$ 0	$ 6
Post-TDR Recorded Investment	$ 0	$ 6
Customer | Europe
Finance receivables modified as TDRs
Number of Contracts | contracts	19	0
Pre-TDR Recorded Investment	$ 11	$ 0
Post-TDR Recorded Investment	$ 7	$ 0
Customer | Asia/Pacific
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0
Pre-TDR Recorded Investment	$ 0	$ 0
Post-TDR Recorded Investment	$ 0	$ 0
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts	0	1
Pre-TDR Recorded Investment	$ 0	$ 29
Post-TDR Recorded Investment	$ 0	$ 29
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	0	1
Pre-TDR Recorded Investment	$ 0	$ 3
Post-TDR Recorded Investment	$ 0	$ 3
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	8	3
Pre-TDR Recorded Investment	$ 51	$ 3
Post-TDR Recorded Investment	$ 50	$ 3
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0

Leases (Details)

Leases (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure
Remaining nine months of 2019	$ 2,445
2019		$ 3,053
2020	2,324	2,076
2021	1,295	1,104
2022	570	470
2023	228	173
Thereafter	82	64
Total	6,944	6,940
Guaranteed residual value	435	458
Unguaranteed residual value	851	857
Unearned income	(646)	(647)
Total	7,584	7,608
Retail leases
Loans and Leases Receivable Disclosure
Remaining nine months of 2019	2,423
2019		3,024
2020	2,303	2,055
2021	1,282	1,092
2022	564	465
2023	226	171
Thereafter	80	62
Total	6,878	6,869
Guaranteed residual value	396	416
Unguaranteed residual value	849	854
Unearned income	(640)	(640)
Total	7,483	7,499
Wholesale leases
Loans and Leases Receivable Disclosure
Remaining nine months of 2019	22
2019		29
2020	21	21
2021	13	12
2022	6	5
2023	2	2
Thereafter	2	2
Total	66	71
Guaranteed residual value	39	42
Unguaranteed residual value	2	3
Unearned income	(6)	(7)
Total	$ 101	$ 109

Leases (Details 2)

Leases (Details 2) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment
Carrying amount of residual assets covered by residual value guarantees and subject to operating leases	$ 23	$ 25
Payments due for operating leases
Remaining Nine Months of 2019	629
2020	553
2021	294
2022	131
2023	52
Thereafter	20
Total	1,679
Scheduled minimum rental payments for operating leases
2019		808
2020		503
2021		257
2022		115
2023		41
Thereafter		15
Total		1,739
Equipment on operating leases
Property, Plant and Equipment
Equipment on operating leases, at cost	5,120	5,201
Less: Accumulated depreciation	(1,649)	(1,639)
Equipment on operating leases, net	3,471	3,562
Caterpillar | Equipment on operating leases
Property, Plant and Equipment
Equipment on operating leases, net	$ 52	$ 45

Leases (Details 3)

Leases (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Leases [Abstract]
Finance lease revenue (included in retail and wholesale finance revenue)	$ 118
Operating lease revenue	258	$ 244
Total	$ 376

Leases (Details 4)

Leases (Details 4) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 2
Short-term lease cost	0
Variable lease cost	$ 0

Leases (Details 5)

Leases (Details 5) - USD ($) $ in Millions	Mar. 31, 2019	Jan. 01, 2019
Operating leases
Lease liabilities	$ 21
Weighted average remaining lease term	4 years	4 years
Weighted average discount rate	2.60%	2.60%
Other assets
Operating leases
Right-of-use assets	$ 21	$ 22
Other liabilities
Operating leases
Lease liabilities	$ 21	$ 23

Leases (Details 6)

Leases (Details 6) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Maturities of operating lease liabilities
Remaining nine months of 2019	$ 6
2020	6
2021	4
2022	2
2023	2
Thereafter	2
Total lease payments	22
Less: imputed interest	(1)
Total	$ 21
Minimum payments for operating leases having initial non-cancelable terms in excess of one year
2019		$ 8
2020		6
2021		4
2022		2
2023		2
Thereafter		2
Total		$ 24

Leases (Details 7)

Leases (Details 7) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 2
Right-of-use assets obtained in exchange for new operating lease obligations	$ 23

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) $ in Millions	Mar. 31, 2019USD ($)
Derivative
Deferred net gains, interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 1

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value
Asset Fair Value	$ 106	$ 112
Liability Fair Value	(76)	(63)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	28	43
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	3	4
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(58)	(40)
Designated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	88	88
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(5)	(9)
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	2	6
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	9	15
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(12)	(12)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	6	5
Undesignated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	$ (1)	$ (2)

Derivative Financial Instrume_5

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Derivative
Derivative instruments, notional amount	$ 9,000	$ 10,210

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivative Instruments, Gain (Loss)
Interest expense	$ (201)	$ (174)
Other income (expense)	(4)	(7)
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI	(4)	(33)
Reclassified from AOCI to Earnings	14	(25)
Recognized in Earnings (Ineffective Portion)		0
Designated derivatives | Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI	(26)	0
Designated derivatives | Cash flow hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
Reclassified from AOCI to Earnings	1	1
Interest expense	(201)
Recognized in Earnings (Ineffective Portion)		0
Designated derivatives | Cash flow hedges | Cross currency contracts
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI	22	(33)
Designated derivatives | Cash flow hedges | Cross currency contracts | Interest expense
Derivative Instruments, Gain (Loss)
Reclassified from AOCI to Earnings	7	3
Interest expense	(201)
Recognized in Earnings (Ineffective Portion)		0
Designated derivatives | Cash flow hedges | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Reclassified from AOCI to Earnings	6	(29)
Other income (expense)	(4)
Recognized in Earnings (Ineffective Portion)		0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(29)	(7)
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(29)	(7)
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 0	$ 0

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Offsetting Assets and Liabilities [Abstract]
Gross Amount of Recognized Assets	$ 106	$ 112
Gross Amounts Offset	0	0
Net Amount of Assets	106	112
Gross Amounts Not Offset	(22)	(34)
Net Amount	84	78
Gross Amount of Recognized Liabilities	(76)	(63)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(76)	(63)
Gross Amounts Not Offset	22	34
Net Amount	$ (54)	$ (29)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (925)	$ (592)
Other comprehensive income/(loss) before reclassifications	10	39
Amounts reclassified from accumulated other comprehensive (income)/loss	(11)	20
Adjustment to adopt reclassification of certain tax effects from AOCI	97
Other comprehensive income/(loss)	96	59
Balance at end of period	(829)	(533)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(889)	(587)
Other comprehensive income/(loss) before reclassifications	13	65
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0
Adjustment to adopt reclassification of certain tax effects from AOCI	98
Other comprehensive income/(loss)	111	65
Balance at end of period	(778)	(522)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(36)	(5)
Other comprehensive income/(loss) before reclassifications	(3)	(26)
Amounts reclassified from accumulated other comprehensive (income)/loss	(11)	20
Adjustment to adopt reclassification of certain tax effects from AOCI	(1)
Other comprehensive income/(loss)	(15)	(6)
Balance at end of period	$ (51)	$ (11)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)		$ (4)	$ (7)
Interest		(201)	(174)
Reclassifications before tax		142	124
Tax (provision) benefit		(38)	(29)
Total reclassifications from Accumulated other comprehensive income/(loss)	[1]	98	91
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax		14	(25)
Tax (provision) benefit		(3)	5
Total reclassifications from Accumulated other comprehensive income/(loss)		11	(20)
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)		6	(29)
Interest		7	3
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest		$ 1	$ 1
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Segment Reporting Information
External Revenues	$ 736	$ 690
Profit before income taxes	142	124
Interest Expense	201	174
Depreciation on equipment leased to others	202	199
Provision for credit losses	53	67
Assets	33,824		$ 34,181
Capital expenditures	246	361
Operating Segments
Segment Reporting Information
External Revenues	725	676
Profit before income taxes	181	148
Interest Expense	191	173
Depreciation on equipment leased to others	202	199
Provision for credit losses	53	60
Assets	32,350		32,598
Capital expenditures	243	269
Unallocated
Segment Reporting Information
External Revenues	19	22
Profit before income taxes	(83)	(67)
Interest Expense	64	58
Depreciation on equipment leased to others	0	0
Provision for credit losses	0	0
Assets	1,952		1,957
Capital expenditures	3	92
Timing
Segment Reporting Information
External Revenues	(8)	(8)
Profit before income taxes	(5)	(3)
Interest Expense	0	0
Depreciation on equipment leased to others	0	0
Provision for credit losses	0	7
Assets	25		55
Capital expenditures	0	0
Methodology
Segment Reporting Information
External Revenues	0	0
Profit before income taxes	49	46
Interest Expense	(54)	(57)
Depreciation on equipment leased to others	0	0
Provision for credit losses	0	0
Assets	(176)		(159)
Capital expenditures	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues	0	0
Profit before income taxes	0	0
Interest Expense	0	0
Depreciation on equipment leased to others	0	0
Provision for credit losses	0	0
Assets	(327)		(270)
Capital expenditures	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	401	361
Profit before income taxes	116	95
Interest Expense	97	82
Depreciation on equipment leased to others	144	135
Provision for credit losses	7	17
Assets	15,677		15,632
Capital expenditures	179	210
Europe | Operating Segments
Segment Reporting Information
External Revenues	72	68
Profit before income taxes	24	7
Interest Expense	14	10
Depreciation on equipment leased to others	17	20
Provision for credit losses	(1)	11
Assets	4,800		4,862
Capital expenditures	23	14
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	94	82
Profit before income taxes	42	40
Interest Expense	30	25
Depreciation on equipment leased to others	3	6
Provision for credit losses	3	(4)
Assets	4,756		4,639
Capital expenditures	6	4
Latin America | Operating Segments
Segment Reporting Information
External Revenues	60	69
Profit before income taxes	3	4
Interest Expense	23	29
Depreciation on equipment leased to others	6	7
Provision for credit losses	16	12
Assets	2,923		2,972
Capital expenditures	2	8
Caterpillar Power Finance | Operating Segments
Segment Reporting Information
External Revenues	29	34
Profit before income taxes	(16)	(3)
Interest Expense	13	12
Depreciation on equipment leased to others	0	1
Provision for credit losses	26	18
Assets	1,964		2,259
Capital expenditures	0	0
Mining | Operating Segments
Segment Reporting Information
External Revenues	69	62
Profit before income taxes	12	5
Interest Expense	14	15
Depreciation on equipment leased to others	32	30
Provision for credit losses	2	6
Assets	2,230		$ 2,234
Capital expenditures	$ 33	$ 33

Guarantees (Details)

Guarantees (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Guarantor Obligations
Related recorded liability	$ 3
Guarantees, maximum potential amount of future payments	103	$ 97
SPC's assets in Consolidated Statements of Financial Position	1,170	1,150
SPC's liabilities in Consolidated Statements of Financial Position	$ 1,170	1,150
Maximum
Guarantor Obligations
Related recorded liability		$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Recurring basis | Level 2
Assets
Derivative financial instruments, net asset (liability) position	$ 30	$ 49

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Fair value of impaired loans	$ 426	$ 469

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Financial Instruments, Financial Assets, Balance Sheet Groupings
Restricted cash and cash equivalents	$ 4	$ 7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(5,586)	(5,723)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	658	766
Restricted cash and cash equivalents	4	7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(5,586)	(5,723)
Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest rate contracts, in a receivable position	3	4
Foreign exchange contracts, in a receivable position	9	15
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(58)	(40)
Foreign exchange contracts, in a payable position	(12)	(12)
Long-term debt	(22,633)	(22,684)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,392	20,510
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Guarantees	(3)	0
Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	658	766
Restricted cash and cash equivalents	4	7
Finance receivables, net (excluding finance leases)	20,281	20,451
Interest rate contracts, in a receivable position	3	4
Foreign exchange contracts, in a receivable position	9	15
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(58)	(40)
Foreign exchange contracts, in a payable position	(12)	(12)
Short-term borrowings	(5,586)	(5,723)
Long-term debt	(22,529)	(22,815)
Guarantees	(3)	0
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases and failed sale leasebacks	7,500	7,470
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	94	93
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	(6)	(11)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	94	93
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	$ (6)	$ (11)

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Estimated annual tax rate	27.00%	23.00%