Caterpillar Financial Services 10-K 19 Feb 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information Document - USD ($)	12 Months Ended
	Dec. 31, 2019	Feb. 19, 2020
Document Information [Line Items]
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-K
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float	$ 0

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Retail finance		$ 1,369	$ 1,308	$ 1,235
Operating lease		1,037	1,011	985
Wholesale finance		491	415	307
Other, net		69	113	162
Total revenues		2,966	2,847	2,689
Expenses:
Interest		787	757	667
Depreciation on equipment leased to others		813	819	810
General, operating and administrative		516	423	429
Provision for credit losses		162	354	132
Other		36	38	46
Total expenses		2,314	2,391	2,084
Other income (expense)		(24)	(23)	(15)
Profit before income taxes		628	433	590
Provision (benefit) for income taxes		196	108	(4)
Profit of consolidated companies		432	325	594
Less: Profit attributable to noncontrolling interests		22	20	8
Profit	[1]	$ 410	$ 305	$ 586
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 432	$ 325	$ 594
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (expense)/benefit	11	(309)	414
Derivative financial instruments:
Gains (losses) deferred, net of tax (expense)/benefit	17	98	(49)
(Gains) losses reclassified to earnings, net of tax expense/(benefit)	(48)	(129)	45
Total Other comprehensive income (loss), net of tax	(20)	(340)	410
Comprehensive income (loss)	412	(15)	1,004
Less: Comprehensive income (loss) attributable to the noncontrolling interests	19	13	15
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 393	$ (28)	$ 989

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income Parenthetical (Parentheticals) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ 4	$ 25	$ 106
Derivative financial instruments:
Gains (losses) deferred, tax	(6)	(29)	28
(Gains) losses reclassified to earnings, tax	$ 14	$ 38	$ (27)

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 690	$ 766
Finance receivables, net	27,832	27,923
Notes receivable from Caterpillar	296	662
Equipment on operating leases, net	3,583	3,562
Other assets	1,292	1,268
Total assets	33,693	34,181
Liabilities and shareholder's equity:
Payable to dealers and others	135	117
Payable to Caterpillar - borrowings and other	693	1,601
Accrued expenses	241	259
Short-term borrowings	5,161	5,723
Current maturities of long-term debt	6,194	5,820
Long-term debt	17,140	16,995
Other liabilities	893	817
Total liabilities	30,457	31,332
Commitments and contingent liabilities (Note 11)
Common stock - $1 par value Authorized: 2,000 shares; Issued and outstanding: one share (at paid-in amount)	745	745
Additional paid-in capital	2	2
Retained earnings	3,162	2,874
Accumulated other comprehensive income/(loss)	(845)	(925)
Noncontrolling interests	172	153
Total shareholder's equity	3,236	2,849
Total liabilities and shareholder's equity	$ 33,693	$ 34,181

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position Parenthetical (Parentheticals) - $ / shares	Dec. 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, 2016	$ 2,985	$ 745	$ 2	$ 3,108	$ (995)	$ 125
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	594			586		8
Dividend paid to Caterpillar	(725)			(725)
Foreign currency translation, net of tax	414				407	7
Derivative financial instruments, net of tax	(4)				(4)
Balance at Dec. 31, 2017	3,264	745	2	2,969	(592)	140
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	325			305		20
Dividend paid to Caterpillar	(400)			(400)
Foreign currency translation, net of tax	(309)				(302)	(7)
Derivative financial instruments, net of tax	(31)				(31)
Balance at Dec. 31, 2018	2,849	745	2	2,874	(925)	153
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	432			410		22
Dividend paid to Caterpillar	(25)			(25)
Foreign currency translation, net of tax	11				14	(3)
Derivative financial instruments, net of tax	(31)				(31)
Adjustment to adopt new accounting guidance | Accounting Standards Update 2018-02	0			(97)	97
Balance at Dec. 31, 2019	$ 3,236	$ 745	$ 2	$ 3,162	$ (845)	$ 172

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Profit of consolidated companies	$ 432	$ 325	$ 594
Adjustments for non-cash items:
Depreciation and amortization	827	832	820
Amortization of receivables purchase discount	(455)	(375)	(253)
Provision for credit losses	162	354	132
Other, net	131	164	61
Changes in assets and liabilities:
Other assets	99	44	60
Payable to dealers and others	18	(57)	(66)
Accrued expenses	(93)	(6)	31
Other payables with Caterpillar	(9)	(10)	36
Other liabilities	93	16	(188)
Net cash provided by operating activities	1,205	1,287	1,227
Cash flows from investing activities:
Expenditures for equipment on operating leases	(1,514)	(1,451)	(1,362)
Capital expenditures - excluding equipment on operating leases	(20)	(108)	(11)
Proceeds from disposals of equipment	769	793	1,003
Additions to finance receivables	(14,270)	(13,595)	(13,920)
Collections of finance receivables	13,531	12,511	14,353
Net changes in Caterpillar purchased receivables	640	(1,046)	(732)
Proceeds from sales of receivables	235	477	127
Net change in variable lending to Caterpillar	69	(58)	(51)
Additions to other notes receivable with Caterpillar	(80)	(390)	(53)
Collections on other notes receivable with Caterpillar	377	345	75
Settlements of undesignated derivatives	(25)	10	45
Other, net	0	0	(6)
Net cash provided by (used for) investing activities	(288)	(2,512)	(532)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	(807)	(109)	40
Payments on borrowings with Caterpillar	(93)	0	(49)
Proceeds from debt issued (original maturities greater than three months)	8,362	8,850	8,702
Payments on debt issued (original maturities greater than three months)	(8,285)	(7,822)	(6,923)
Short-term borrowings, net (original maturities three months or less)	(143)	762	(2,854)
Dividend paid to Caterpillar	(25)	(400)	(725)
Net cash provided by (used for) financing activities	(991)	1,281	(1,809)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4)	(15)	22
Increase/(decrease) in cash, cash equivalents and restricted cash	(78)	41	(1,092)
Cash, cash equivalents and restricted cash at beginning of period	773	732	1,824
Cash, cash equivalents and restricted cash at end of period	695	773	732
Cash paid for interest	810	743	647
Cash paid for taxes	$ 79	79	159
Cash and cash equivalents policy	All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.
Restricted cash and cash equivalents	$ 5	$ 7	$ 24

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Nature of Operations Caterpillar Financial Services Corporation was organized in 1981 in the State of Delaware (together with its subsidiaries, "Cat Financial," "the Company," "we" or "our"). We are a wholly-owned finance subsidiary of Caterpillar Inc. (together with its other subsidiaries, "Caterpillar" or "Cat"). Our primary business is to provide retail and wholesale financing alternatives for Caterpillar products to customers and dealers around the world. Retail financing is primarily comprised of financing of Caterpillar equipment, machinery and engines. We also provide financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. In addition to retail financing, we provide wholesale financing to Caterpillar dealers and purchase short-term trade receivables from Caterpillar. The various financing plans offered by Cat Financial are primarily designed to increase the opportunity for sales of Caterpillar products and generate financing income for Cat Financial. A significant portion of our activities is conducted in North America with additional offices and subsidiaries in Latin America, Asia/Pacific, Europe, Africa and the Middle East. B. Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs) in which Cat Financial is the primary beneficiary. We consolidate all VIEs where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 11 for more information. We have customers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. Certain amounts for prior periods have been reclassified to conform with current period financial statement presentation. C. Revenue Recognition Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of purchased receivables discount and certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and operating lease revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed and previously suspended income is recognized when the account becomes current and collection of remaining amounts is considered probable. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible. We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate. Other revenue includes: (1) late charges, (2) fee revenue, primarily commitment fees and fees on committed lines of credit or letters of credit, (3) gains and losses on sales of returned or repossessed equipment, (4) impairments on returned or repossessed equipment held for sale, (5) gains and losses on loan and lease sales and (6) other miscellaneous revenues. Other revenue items are recognized in accordance with relevant authoritative pronouncements. D. Depreciation Depreciation for equipment on operating leases is recognized using the straight-line method over the lease term, typically one to seven years. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. E. Residual Values The residuals for leases classified as operating leases are included in Equipment on operating leases, 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 our leases, we monitor residual values. For operating leases, adjustments to depreciation expense reflecting changes in residual value estimates are recorded prospectively on a straight-line basis. For finance leases, residual value adjustments are recognized through a reduction of finance revenue over the remaining lease term. We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, the fair value of the equipment on operating leases is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value. F. Derivative Financial Instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. All derivatives are recorded at fair value. See Note 9 for additional information. G. Allowance for Credit Losses The allowance for credit losses is an estimate of the losses inherent in our finance receivable portfolio and includes consideration of accounts that have been individually identified as impaired, as well as pools of finance receivables where it is probable that certain receivables in the pool are impaired but the individual accounts cannot yet be identified. In identifying and measuring impairment, management takes into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions. Accounts are identified for individual review based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated and determined to be impaired is based on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. The allowance for credit losses attributable to the remaining accounts not yet individually identified as impaired is estimated based on loss forecast models utilizing probabilities of default, our estimate of the loss emergence period and the estimated loss given default. In addition, qualitative factors not able to be fully captured in our loss forecast models including industry trends, macroeconomic factors and model imprecision are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). The amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. H. Income Taxes The provision for income taxes is determined using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. A current liability is recognized for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are adjusted for enacted changes in tax rates and tax laws. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 12 for further discussion. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year. I. Foreign Currency Translation The functional currency for most of our subsidiaries is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in the Consolidated Statements of Profit. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income/(loss) in the Consolidated Statements of Financial Position. J. Estimates in Financial Statements The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates. K. New Accounting Pronouncements Adoption of new accounting standards Lease accounting (Accounting Standards Update (ASU) 2016-02) – 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 continues 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 is 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 recast 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 not to 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 have not recognized 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 financial statements. In March 2019, the FASB issued Leases - Codification improvements (ASU 2019-01) 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 Notes 3 and 11 for additional information. Reclassification of certain tax effects from accumulated other comprehensive income (ASU 2018-02) – 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 . We adopted the following ASU effective January 1, 2019, which did not have a material impact on our financial statements: ASU Description 2017-12 Derivatives and hedging - Targeted improvements Accounting standards issued but not yet adopted Credit losses (ASU 2016-13) – 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 was effective January 1, 2020. We do not expect the adoption to have a material impact on our financial statements. We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and either determined to be not applicable or not expected to have a material impact on our financial statements.

Finance Receivables

Finance Receivables	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Finance Receivables	FINANCE RECEIVABLES A summary of finance receivables included in the Consolidated Statements of Financial Position as of December 31, was as follows: (Millions of dollars) 2019 2018 Retail loans, net (1) $ 15,424 $ 15,509 Retail leases, net 7,660 7,499 Caterpillar purchased receivables, net 4,448 4,691 Wholesale loans, net (1) 664 626 Wholesale leases, net 60 109 Recorded investment in finance receivables 28,256 28,434 Less: Allowance for credit losses (424 ) (511 ) Total finance receivables, net $ 27,832 $ 27,923 (1) Includes failed sale leasebacks. Maturities of our finance receivables, as of December 31, 2019 , reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail loans Retail leases Caterpillar purchased receivables Wholesale loans Wholesale leases Total 2020 $ 6,486 $ 3,184 $ 4,505 $ 424 $ 17 $ 14,616 2021 3,696 2,043 — 121 12 5,872 2022 2,693 1,105 — 83 5 3,886 2023 1,688 494 — 7 2 2,191 2024 648 196 — 1 1 846 Thereafter 435 80 — 3 1 519 Total 15,646 7,102 4,505 639 38 27,930 Guaranteed residual value (1) 53 416 — 25 24 518 Unguaranteed residual value — 829 — — 2 831 Unearned income (275 ) (687 ) (57 ) — (4 ) (1,023 ) Total $ 15,424 $ 7,660 $ 4,448 $ 664 $ 60 $ 28,256 (1) For Retail loans and Wholesale loans, represents residual value on failed sale leasebacks. Our finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity and we also sell finance receivables to third parties to mitigate the concentration of credit risk with certain customers. Accordingly, this presentation should not be regarded as a forecast of future cash collections. Revenues from finance leases were $518 million for the year ended December 31, 2019 and are included in retail and wholesale finance revenue in the Consolidated Statements of Profit. The residuals for leases classified as finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position. For finance leases, residual value adjustments are recognized through a reduction of finance revenue over the remaining lease term. 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. • EAME - 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. • Latin America - Finance receivables originated in Mexico and Central and South American countries. • Caterpillar Power Finance - Finance receivables originated worldwide related to marine vessels with Caterpillar engines and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. Our allowance for credit losses as of December 31, 2019 was $424 million or 1.50 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) December 31, 2019 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 486 $ 21 $ 4 $ 511 Receivables written off (281 ) — — (281 ) Recoveries on receivables previously written off 44 — — 44 Provision for credit losses 138 24 — 162 Adjustment due to sale of receivables (11 ) — — (11 ) Foreign currency translation adjustment (1 ) — — (1 ) Balance at end of year $ 375 $ 45 $ 4 $ 424 Individually evaluated for impairment $ 178 $ 39 $ — $ 217 Collectively evaluated for impairment 197 6 4 207 Ending Balance $ 375 $ 45 $ 4 $ 424 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 594 $ 78 $ — $ 672 Collectively evaluated for impairment 18,770 4,366 4,448 27,584 Ending Balance $ 19,364 $ 4,444 $ 4,448 $ 28,256 (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) December 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 $ 72 $ 23 $ 55 $ 150 $ 8,121 $ 8,271 $ 15 EAME 30 31 141 202 2,955 3,157 4 Asia/Pacific 40 14 29 83 2,992 3,075 8 Mining 5 — 19 24 1,851 1,875 — Latin America 41 23 80 144 1,178 1,322 2 Caterpillar Power Finance 10 10 225 245 1,419 1,664 — Dealer North America — — — — 2,514 2,514 — EAME — — — — 600 600 — Asia/Pacific — — — — 487 487 — Mining — — — — 4 4 — Latin America — — 78 78 758 836 — Caterpillar Power Finance — — — — 3 3 — Caterpillar Purchased Receivables (1) North America 15 6 18 39 2,450 2,489 EAME 1 — 2 3 574 577 Asia/Pacific 1 — — 1 891 892 Mining — — — — — — Latin America — — — — 475 475 Caterpillar Power Finance — — — — 15 15 Total $ 215 $ 107 $ 647 $ 969 $ 27,287 $ 28,256 $ 29 (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 EAME 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 — EAME — — — — 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 EAME 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 $39 million and $14 million as of December 31, 2019 and 2018 , respectively, for the Dealer portfolio segment, all of which was in Latin America. There were no impaired finance receivables, as of December 31, 2017 , for the Dealer portfolio segment. There were no impaired finance receivables as of December 31, 2019 , 2018 and 2017 , for the Caterpillar Purchased Receivables portfolio segment. Our recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: (Millions of dollars) As of December 31, 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 $ 6 $ 6 $ — $ 10 $ 10 $ — EAME — — — 1 1 — Asia/Pacific — — — 1 1 — Mining 22 22 — 33 33 — Latin America 8 8 — 29 29 — Caterpillar Power Finance 58 58 — 69 83 — Total $ 94 $ 94 $ — $ 143 $ 157 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 30 $ 30 $ 11 $ 40 $ 41 $ 14 EAME 61 61 29 92 92 57 Asia/Pacific 8 8 2 4 4 2 Mining 37 36 9 56 55 26 Latin America 58 58 20 75 75 25 Caterpillar Power Finance 306 319 107 449 455 164 Total $ 500 $ 512 $ 178 $ 716 $ 722 $ 288 Total Impaired Finance Receivables North America $ 36 $ 36 $ 11 $ 50 $ 51 $ 14 EAME 61 61 29 93 93 57 Asia/Pacific 8 8 2 5 5 2 Mining 59 58 9 89 88 26 Latin America 66 66 20 104 104 25 Caterpillar Power Finance 364 377 107 518 538 164 Total $ 594 $ 606 $ 178 $ 859 $ 879 $ 288 (Millions of dollars) Year Ended Year Ended Year Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 9 $ — $ 16 $ 1 $ 13 $ 1 EAME 6 — 14 — 48 1 Asia/Pacific — — 28 3 24 2 Mining 27 1 57 2 126 7 Latin America 21 1 38 2 64 3 Caterpillar Power Finance 54 3 130 7 221 9 Total $ 117 $ 5 $ 283 $ 15 $ 496 $ 23 Impaired Finance Receivables With An Allowance Recorded North America $ 34 $ 2 $ 49 $ 2 $ 49 $ 1 EAME 81 2 53 2 6 — Asia/Pacific 9 1 5 — 31 2 Mining 48 2 46 3 — — Latin America 72 5 67 3 99 4 Caterpillar Power Finance 396 11 378 12 180 6 Total $ 640 $ 23 $ 598 $ 22 $ 365 $ 13 Total Impaired Finance Receivables North America $ 43 $ 2 $ 65 $ 3 $ 62 $ 2 EAME 87 2 67 2 54 1 Asia/Pacific 9 1 33 3 55 4 Mining 75 3 103 5 126 7 Latin America 93 6 105 5 163 7 Caterpillar Power Finance 450 14 508 19 401 15 Total $ 757 $ 28 $ 881 $ 37 $ 861 $ 36 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. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible. As of December 31, 2019 and 2018 , there were $78 million in finance receivables on non-accrual status for the Dealer portfolio segment, all of which was in Latin America. The recorded investment in Customer finance receivables on non-accrual status as of December 31, was as follows: (Millions of dollars) 2019 2018 North America $ 44 $ 77 EAME 165 154 Asia/Pacific 21 4 Mining 47 50 Latin America 89 106 Caterpillar Power Finance 361 416 Total $ 727 $ 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. There were no finance receivables modified as TDRs during the years ended December 31, 2019 , 2018 and 2017 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2019 , 2018 and 2017 , was as follows: (Dollars in millions) Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 15 $ 11 $ 11 EAME 19 17 17 Asia/Pacific — — — Mining 2 8 8 Latin America 5 5 3 Caterpillar Power Finance 21 168 165 Total 62 $ 209 $ 204 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 38 $ 21 $ 21 EAME — — — Asia/Pacific — — — Mining 1 29 29 Latin America 1 3 3 Caterpillar Power Finance 12 133 99 Total 52 $ 186 $ 152 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 43 $ 34 $ 35 EAME 4 1 1 Asia/Pacific 10 39 31 Mining 2 57 56 Latin America 17 26 27 Caterpillar Power Finance (1) 68 422 407 Total 144 $ 579 $ 557 (1) In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2019 , 2018 and 2017 , which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Year Ended Year Ended Year Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 11 $ 5 10 $ 10 4 $ 3 EAME — — — — 1 — Asia/Pacific — — — — 4 1 Latin America (1) — — 3 1 243 17 Caterpillar Power Finance 1 10 3 33 — — Total 12 $ 15 16 $ 44 252 $ 21 (1) In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.

Equipment on Operating Leases

Equipment on Operating Leases	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Equipment on Operating Leases	EQUIPMENT ON OPERATING LEASES The carrying amount of Equipment on operating leases, net in the Consolidated Statements of Financial Position as of December 31, was as follows: (Millions of dollars) 2019 2018 Equipment on operating leases, at cost $ 5,171 $ 5,201 Less: Accumulated depreciation (1,588 ) (1,639 ) Equipment on operating leases, net $ 3,583 $ 3,562 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 value of leased equipment is determined based on its estimated end-of-term market value. We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends. The following critical factors are also considered in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options. The residuals for leases classified as operating leases are included in Equipment on operating leases, net in the Consolidated Statements of Financial Position. During the term of our leases, we monitor residual values. For operating leases, adjustments to depreciation expense reflecting changes in residual value estimates are recorded prospectively on a straight-line basis. The carrying amount of residual assets covered by residual value guarantees and subject to operating leases was $11 million and $25 million as of December 31, 2019 and 2018 , respectively. At December 31, 2019 , payments due for operating leases were as follows: (Millions of dollars) 2020 2021 2022 2023 2024 Thereafter Total $ 812 $ 511 $ 268 $ 129 $ 59 $ 35 $ 1,814 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 We sell operating 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. Revenues from operating leases were $1.04 billion for the year ended December 31, 2019 . 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. We individually assess our operating lease receivables for impairment. If collectability of a recorded operating lease receivable is not considered probable, we recognize a current-period adjustment against operating lease revenue.

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2019
Other Assets [Abstract]
Other Assets	OTHER ASSETS The components of Other assets as of December 31, were as follows: (Millions of dollars) 2019 2018 Customer and other miscellaneous receivables $ 494 $ 480 Collateral held for resale, at net realizable value 383 316 Deferred and refundable income taxes 142 191 Property and equipment, net 135 128 Other 138 153 Total Other assets $ 1,292 $ 1,268

Concentration of Credit Risk

Concentration of Credit Risk	12 Months Ended
	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	CONCENTRATION OF CREDIT RISK Financial instruments with potential credit risk consist primarily of finance receivables. Additionally, to a lesser extent, we have potential credit risk associated with counterparties to derivative contracts. As of December 31, 2019 and 2018 , receivables from customers in construction-related industries made up approximately one-third of our total portfolio of which customers in North America were approximately 60 percent. No single customer or dealer represented a significant concentration of credit risk. We typically maintain a security interest in retail financed equipment and, in some instances, wholesale financed equipment. We also require physical damage insurance coverage on all financed equipment. See Note 15 for further information concerning business segments. For derivative contracts, collateral is generally not required of the counterparties or of us. We enter into International Swaps and Derivatives Association (ISDA) master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. The master netting agreements reduce the amount of loss the company would incur should the counterparties fail to meet their obligations. At December 31, 2019 and 2018 , the maximum exposure to credit loss, was $84 million and $112 million , respectively, before the application of any master netting agreements. See Note 9 for further information concerning derivatives.

Credit Commitments

Credit Commitments	12 Months Ended
	Dec. 31, 2019
Credit Commitments [Abstract]
Credit Commitments	CREDIT COMMITMENTS Revolving credit facilities We have three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and us for general liquidity purposes. Based on management's allocation decision, which can be revised from time to time, the portion of the Credit Facility available to us as of December 31, 2019 was $7.75 billion . Information on our Credit Facility is as follows: • The 364-day facility of $3.15 billion (of which $2.33 billion is available to us) expires in September 2020. • The three-year facility, as amended and restated in September 2019, of $2.73 billion (of which $2.01 billion is available to us) expires in September 2022. • The five-year facility, as amended and restated in September 2019, of $4.62 billion (of which $3.41 billion is available to us) expires in September 2024. At December 31, 2019 , Caterpillar’s consolidated net worth was $14.63 billion , which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined in the Credit Facility as the consolidated shareholders' equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income/(loss). At December 31, 2019 , our covenant interest coverage ratio was 1.77 to 1 . This is above the 1.15 to 1 minimum ratio, calculated as (1) profit excluding income taxes, interest expense and net gain/(loss) from interest rate derivatives to (2) interest expense, calculated at the end of each calendar quarter for the rolling four quarter period then most recently ended, required by the Credit Facility. In addition, at December 31, 2019 , our six-month covenant leverage ratio was 7.65 to 1 and our year-end covenant leverage ratio was 7.46 to 1 . This is below the maximum ratio of debt to net worth of 10 to 1 , calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility. In the event that either Caterpillar or we do not meet one or more of our respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants. Additionally, in such event, certain of our other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable, may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings. At December 31, 2019 , there were no borrowings under the Credit Facility. Bank borrowings Available credit lines with banks as of December 31, 2019 totaled $4.81 billion . These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our non-U.S. subsidiaries for local funding requirements. As of December 31, 2019 and 2018 , we had $1.25 billion and $1.17 billion , respectively, outstanding against these credit lines and were in compliance with all debt covenants under these credit lines. The remaining available credit commitments may be withdrawn any time at the lenders' discretion. Variable denomination floating rate demand notes We obtain funding from the sale of variable denomination floating rate demand notes, which may be redeemed at any time at the option of the holder without any material restriction. We do not hold reserves to fund the payment of the demand notes. The notes are offered on a continuous basis. As of December 31, 2019 and 2018 , there was $388 million and $438 million of variable denomination floating rate demand notes outstanding. The maximum amount of variable denomination floating rate demand notes that we may have outstanding at any time may not exceed $1.25 billion . Notes receivable from/payable to Caterpillar Under our variable amount and term lending agreements and other notes receivable with Caterpillar, we may borrow up to $2.61 billion from Caterpillar and Caterpillar may borrow up to $2.05 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to nine years . We had notes payable of $618 million and notes receivable of $296 million outstanding under these agreements as of December 31, 2019 , compared with notes payable of $1.52 billion and notes receivable of $662 million as of December 31, 2018 .

Short-Term Borrowings

Short-Term Borrowings	12 Months Ended
	Dec. 31, 2019
Short-term Debt [Abstract]
Short-Term Borrowings	SHORT-TERM BORROWINGS Short-term borrowings outstanding as of December 31, were comprised of the following: (Millions of dollars) 2019 2018 Balance Avg. Rate Balance Avg. Rate Commercial paper, net $ 4,168 1.3% $ 4,759 2.0% Bank borrowings 605 5.0% 526 5.3% Variable denomination floating rate demand notes 388 1.7% 438 2.2% Total $ 5,161 $ 5,723

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2019
Long-term Debt, Unclassified [Abstract]
Long-Term Debt	LONG-TERM DEBT During 2019 , we issued $6.09 billion of medium-term notes, of which $3.59 billion were at fixed interest rates and $2.50 billion were at floating interest rates, primarily indexed to LIBOR. At December 31, 2019 , the outstanding medium-term notes had remaining maturities ranging up to 8 years . Debt issuance costs are capitalized and amortized to Interest expense using the effective yield method over the term of the debt issuance. The balance of our medium-term notes contains unamortized fair value adjustments for debt in a fair value hedge relationship. Long-term debt outstanding as of December 31, was comprised of the following: (Millions of dollars) 2019 2018 Balance Avg. Rate Balance Avg. Rate Medium-term notes $ 22,739 2.6% $ 22,226 2.6% Unamortized discount and debt issuance costs (47 ) (57 ) Medium-term notes, net 22,692 22,169 Bank borrowings 642 6.6% 646 5.8% Total $ 23,334 $ 22,815 Long-term debt outstanding as of December 31, 2019 , matures as follows: ( Millions of dollars) 2020 $ 6,194 2021 7,732 2022 4,744 2023 2,167 2024 2,157 Thereafter 340 Total $ 23,334 The above table includes $29 million of medium-term notes that could be called by us at some point in the future at par. Medium-term notes of $1.50 billion matured January 10, 2020 and were excluded from Current maturities of long-term debt as of December 31, 2019 due to an issuance on January 9, 2020 of two $750 million medium-term notes, maturing in 2021 and 2022. The table above reflects the maturity dates of the new medium-term notes.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	12 Months Ended
	Dec. 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 December 31, 2019 , $16 million of deferred net losses, 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 as of December 31, were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of Financial Position Location 2019 2018 Designated derivatives Interest rate contracts Other assets $ 5 $ 4 Interest rate contracts Accrued expenses (25 ) (40 ) Cross currency contracts Other assets 67 88 Cross currency contracts Accrued expenses (3 ) (9 ) $ 44 $ 43 Undesignated derivatives Foreign exchange contracts Other assets $ 7 $ 15 Foreign exchange contracts Accrued expenses (21 ) (12 ) Cross currency contracts Other assets 5 5 Cross currency contracts Accrued expenses (1 ) (2 ) $ (10 ) $ 6 The total notional amount of our derivative instruments was $8.93 billion and $10.21 billion as of December 31, 2019 and 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) Year Ended December 31, 2019 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI Classification Amount of Gains (Losses) Reclassified from AOCI Amount of the line items in the Consolidated Statements of Profit Interest rate contracts $ (70 ) Interest expense $ (8 ) $ (787 ) Cross currency contracts 93 Other income (expense) 37 (24 ) Interest expense 33 (787 ) $ 23 $ 62 Year Ended December 31, 2018 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (38 ) Interest expense $ — $ — Cross currency contracts 165 Other income (expense) 148 — Interest expense 19 — $ 127 $ 167 $ — Year Ended December 31, 2017 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 3 $ — Cross currency contracts (77 ) Other income (expense) (81 ) — Interest expense 6 — $ (77 ) $ (72 ) $ — The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows for the years ended December 31: (Millions of dollars) Classification 2019 2018 2017 Foreign exchange contracts Other income (expense) $ (38 ) $ 16 $ 14 Cross currency contracts Other income (expense) 1 3 (5 ) $ (37 ) $ 19 $ 9 We enter into International Swaps and Derivatives Association (ISDA) master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or us under the master netting agreements. As of December 31, 2019 and 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 as of December 31, was as follows: (Millions of dollars) 2019 2018 Derivative Assets Gross Amount of Recognized Assets $ 84 $ 112 Gross Amounts Offset — — Net Amount of Assets (1) 84 112 Gross Amounts Not Offset (21 ) (34 ) Net Amount $ 63 $ 78 Derivative Liabilities Gross Amount of Recognized Liabilities $ (50 ) $ (63 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (50 ) (63 ) Gross Amounts Not Offset 21 34 Net Amount $ (29 ) $ (29 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	12 Months Ended
	Dec. 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 Balance at December 31, 2016 $ (994 ) $ (1 ) $ (995 ) Other comprehensive income/(loss) before reclassifications 407 (49 ) 358 Amounts reclassified from accumulated other comprehensive (income)/loss — 45 45 Other comprehensive income/(loss) 407 (4 ) 403 Balance at December 31, 2017 $ (587 ) $ (5 ) $ (592 ) Other comprehensive income/(loss) before reclassifications (302 ) 98 (204 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (129 ) (129 ) Other comprehensive income/(loss) (302 ) (31 ) (333 ) Balance at December 31, 2018 $ (889 ) $ (36 ) $ (925 ) Other comprehensive income/(loss) before reclassifications 14 17 31 Amounts reclassified from accumulated other comprehensive (income)/loss — (48 ) (48 ) Adjustment to adopt new accounting guidance (1) 98 (1 ) 97 Other comprehensive income/(loss) 112 (32 ) 80 Balance at December 31, 2019 $ (777 ) $ (68 ) $ (845 ) (1) See Note 1 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 during the years ended December 31, 2019 , 2018 and 2017 was as follows: (Millions of dollars) Derivative financial instruments Classification of income (expense) 2019 2018 2017 Cross currency contracts Other income (expense) $ 37 $ 148 $ (81 ) Cross currency contracts Interest expense 33 19 6 Interest rate contracts Interest expense (8 ) — 3 Reclassifications before tax 62 167 (72 ) Tax (provision) benefit (14 ) (38 ) 27 Total reclassifications from Accumulated other comprehensive income/(loss) $ 48 $ 129 $ (45 )

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	COMMITMENTS AND CONTINGENT LIABILITIES 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 December 31, 2019 and 2018 , the related recorded liability was less than $1 million . The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was $65 million and $97 million at December 31, 2019 and 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 December 31, 2019 and 2018 , the SPC’s assets of $1.45 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 $1.45 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. Lending commitments We have commitments to extend credit to customers and Caterpillar dealers through lines of credit and other pre-approved credit arrangements. We apply the same credit policies and approval process for these commitments to extend credit as we do for other financing. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. The amount of unused commitments to extend credit to Caterpillar dealers was $11.22 billion at December 31, 2019 . The amount of unused commitments to extend credit to customers was $693 million at December 31, 2019 . A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts do not represent a future cash requirement. We generally have the right to unconditionally cancel, alter, or amend the terms of these commitments at any time. Lease commitments We lease certain property, vehicles and other equipment 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 not to separate payments for lease components from non-lease components. 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 with a term of twelve months or less. The components of lease cost were as follows: (Millions of dollars) Year Ended Operating lease cost $ 9 Short-term lease cost $ 1 Variable lease cost $ 1 Operating lease right-of-use assets are recognized in Other assets in the Consolidated Statements of Financial Position. The operating lease liabilities are recognized in Other liabilities in the Consolidated Statements of Financial Position. Supplemental information related to operating leases was as follows: (Millions of dollars) December 31, January 1, Other assets $ 21 $ 22 Other liabilities $ 21 $ 23 Weighted average remaining lease term 5 years 4 years Weighted average discount rates 2.4 % 2.6 % At December 31, 2019 , maturities of operating lease liabilities were as follows: (Millions of dollars) 2020 $ 7 2021 5 2022 3 2023 3 2024 1 Thereafter 3 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) Year Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 8 Right-of-use assets obtained in exchange for operating lease obligations $ 2 Litigation and claims We are involved in unresolved legal actions that arise in the normal course of business. Although it is not possible to predict with certainty the outcome of our unresolved legal actions, we believe that these unresolved legal actions will neither individually nor in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES On December 22, 2017, U.S. tax legislation was enacted containing a broad range of tax reform provisions including a corporate tax rate reduction and changes in the U.S. taxation of non-U.S. earnings. In 2018, measurement period adjustments of $12 million increased the provisionally estimated net benefit of $151 million recognized during the fourth quarter of 2017. A $7 million benefit, resulting from the 2017 tax year return to provision adjustments, revised the estimated impact of the write-down of U.S. net deferred tax liabilities to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent . A $5 million benefit revised the estimated cost of a mandatory deemed repatriation of non-U.S. earnings. As a result of U.S. tax reform legislation, distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. We have not recorded a deferred tax liability for withholding taxes in non-U.S. jurisdictions where earnings are considered indefinitely reinvested. If management intentions or U.S. tax law changes in the future, there could be an impact on the provision for income taxes to record an incremental tax liability in the period the change occurs. A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: (Millions of dollars) 2019 2018 2017 Taxes computed at U.S. statutory rates $ 132 21.0 % $ 91 21.0 % $ 206 35.0 % (Decreases) increases in taxes resulting from: State Income Tax, net of Federal Tax 1 0.2 % 1 0.2 % 2 0.3 % Subsidiaries' results subject to tax rates other than U.S. statutory rates 32 5.1 % 28 6.5 % (31 ) (5.3 )% Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (1) 2 0.3 % — — % (16 ) (2.7 )% Foreign currency translation taxed at non-U.S. subsidiaries (1 ) (0.2 )% (1 ) (0.2 )% (12 ) (2.0 )% U.S. deferred tax rate change — — % (7 ) (1.6 )% (334 ) (56.6 )% Mandatory deemed repatriation of non-U.S. earnings — — % (5 ) (1.2 )% 183 31.0 % Prior year tax adjustments 9 1.4 % 11 2.5 % — — % Valuation allowances 21 3.4 % (7 ) (1.6 )% — — % Other, net — — % (3 ) (0.7 )% (2 ) (0.4 )% Provision (benefit) for income taxes $ 196 31.2 % $ 108 24.9 % $ (4 ) (0.7 )% (1) Excludes provisionally estimated net benefit from 2017 U.S. tax reform. The provision for income taxes includes a prior year net tax charge of $9 million for 2019, compared with $11 million for 2018, to reduce non-U.S. deferred tax assets in certain jurisdictions to balances supporting the expected reversal of temporary differences between tax and U.S. GAAP balances. The provision for income taxes for 2019 also includes an increase in valuation allowance for non-U.S. deferred tax assets due to a decrease in consistent and/or sustainable profitability to support their recognition in certain jurisdictions, resulting in a $21 million non-cash expense. The provision for income taxes for 2018 includes a decrease in the valuation allowance for non-U.S. deferred tax assets due to improved U.S. GAAP profits expected to recur in certain jurisdictions, resulting in a $7 million non-cash benefit. The components of Profit before income taxes for the years ended December 31, were as follows: (Millions of dollars) 2019 2018 2017 U.S. $ 257 $ 213 $ 285 Non-U.S. 371 220 305 Total $ 628 $ 433 $ 590 Profit before income taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above. The components of the Provision (benefit) for income taxes were as follows for the years ended December 31: (Millions of dollars) 2019 2018 2017 Current income tax provision (benefit): U.S. $ 13 $ (46 ) $ 157 Non-U.S. 161 112 102 State (U.S.) 2 1 1 176 67 260 Deferred income tax provision (benefit): U.S. 32 67 (239 ) Non-U.S. (11 ) (26 ) (28 ) State (U.S.) (1 ) — 3 20 41 (264 ) Total Provision (benefit) for income taxes $ 196 $ 108 $ (4 ) Current income tax provision is the amount of income taxes reported or expected to be reported on our income tax returns. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year. Income taxes payable were $160 million and $135 million as of December 31, 2019 and 2018 , respectively, and are included in Other liabilities in the Consolidated Statements of Financial Position. Accounting for income taxes under generally accepted accounting principles requires individual tax-paying entities of the Company to offset deferred income tax assets and liabilities within each particular tax jurisdiction and present them as a single amount in the Consolidated Statements of Financial Position. Amounts in different tax jurisdictions cannot be offset against each other. The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: (Millions of dollars) 2019 2018 Assets: Other assets $ 118 $ 108 Liabilities: Other liabilities (680 ) (653 ) Deferred income taxes, net $ (562 ) $ (545 ) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) 2019 2018 Deferred income tax assets: Allowance for credit losses $ 124 $ 111 Tax carryforwards 39 44 163 155 Deferred income tax liabilities (primarily lease basis differences) (508 ) (508 ) Valuation allowance for deferred income tax assets (23 ) (2 ) Deferred income tax on translation adjustment (194 ) (190 ) Deferred income taxes, net $ (562 ) $ (545 ) As of December 31, 2019 , amounts and expiration dates of net operating loss (NOL) carryforwards in various U.S. state taxing jurisdictions were: (Millions of dollars) 2020 2021 2022 2023 2024-2039 Unlimited Total $ — $ 5 $ 5 $ 6 $ 93 $ 5 $ 114 The gross deferred income tax asset associated with these NOL carryforwards is $9 million as of December 31, 2019 , partially offset by a valuation allowance of $2 million . In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis. At December 31, 2019 , approximately $6 million of U.S. foreign tax credits were available for carryforward. These credits expire in 2028. As of December 31, 2019 , amounts and expiration dates of NOL carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2020 2021 2022 2023 2024-2034 Unlimited Total $ — $ 9 $ 2 $ 6 $ 6 $ 121 $ 144 Valuation allowances of $21 million have been recorded at certain non-U.S. subsidiaries that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets. A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: (Millions of dollars) 2019 2018 2017 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ 119 $ — $ 4 Additions for income tax positions related to current year — 119 — Reductions for income tax positions related to settlements (2) — — (4 ) Balance at end of year $ 119 $ 119 $ — Amount that, if recognized, would impact the effective tax rate $ 119 $ 119 $ — (1) Foreign currency translation amounts are included within each line as applicable. (2) Includes cash payment or other reduction of assets to settle liability. We classify interest and penalties on income taxes as a component of the provision for income taxes. During the years ended December 31, 2019 , 2018 and 2017 , we recognized an expense of less than $1 million , a benefit of $1 million and an expense of $2 million in interest and penalties, respectively. As of December 31, 2019 and 2018 , the total amount of accrued interest and penalties was less than $1 million . On January 31, 2018, Caterpillar received a Revenue Agent's Report (RAR) from the IRS indicating the end of field examination of our U.S. tax returns for 2010 to 2012. Tax years prior to 2007 are generally no longer subject to U.S. tax assessment. In our major non-U.S. jurisdictions, tax years are typically subject to examination for three to ten years. Due to the uncertainty related to the timing and potential outcome of audits, we cannot estimate the range of reasonably possible change in unrecognized tax benefits in the next 12 months.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 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 $34 million and $49 million as of December 31, 2019 and 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 $343 million and $469 million as of December 31, 2019 and 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. Fair values of our financial instruments were as follows: (Millions of dollars) 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 690 $ 690 $ 766 $ 766 1 Restricted cash and cash equivalents (2) $ 5 $ 5 $ 7 $ 7 1 Finance receivables, net (excluding finance leases (1) ) $ 20,022 $ 20,133 $ 20,451 $ 20,510 3 Note 2 Interest rate contracts: In a receivable position $ 5 $ 5 $ 4 $ 4 2 Note 9 In a payable position $ (25 ) $ (25 ) $ (40 ) $ (40 ) 2 Note 9 Cross currency contracts In a receivable position $ 72 $ 72 $ 93 $ 93 2 Note 9 In a payable position $ (4 ) $ (4 ) $ (11 ) $ (11 ) 2 Note 9 Foreign exchange contracts: In a receivable position $ 7 $ 7 $ 15 $ 15 2 Note 9 In a payable position $ (21 ) $ (21 ) $ (12 ) $ (12 ) 2 Note 9 Short-term borrowings $ (5,161 ) $ (5,161 ) $ (5,723 ) $ (5,723 ) 1 Note 7 Long-term debt $ (23,334 ) $ (23,655 ) $ (22,815 ) $ (22,684 ) 2 Note 8 Guarantees $ — $ — $ — $ — 3 Note 11 (1) Represents finance leases and failed sale leasebacks of $7.81 billion as of December 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.

Transactions with Related Parti

Transactions with Related Parties	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Transactions with Related Parties	TRANSACTIONS WITH RELATED PARTIES We have a Support Agreement with Caterpillar, which provides that Caterpillar will (1) remain, directly or indirectly, our sole owner; (2) cause us to maintain a tangible net worth of at least $20 million and (3) ensure that we maintain a ratio of profit before income taxes and interest expense to interest expense (as defined by the Support Agreement) of not less than 1.15 to 1, calculated on an annual basis. Although this agreement can be modified or terminated by either party, any termination or any modification which would adversely affect holders of our debt requires the consent of holders of 66-2/3 percent in principal amount of outstanding debt of each series so affected. Any modification or termination which would adversely affect the lenders under the Credit Facility requires their consent. Caterpillar's obligation under this agreement is not directly enforceable by any of our creditors and does not constitute a guarantee of any of our obligations. Cash dividends of $25 million , $400 million and $725 million were paid to Caterpillar in 2019 , 2018 and 2017 , respectively. We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.61 billion from Caterpillar, and Caterpillar may borrow up to $2.05 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to nine years. We extended a $2 billion committed credit facility to Caterpillar, which expired in February 2019. Under this agreement, we received a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. Information concerning these agreements was as follows: (Millions of dollars) 2019 2018 2017 Payable to Caterpillar - borrowings as of December 31, $ 618 $ 1,518 $ 1,638 Payable to Caterpillar - other as of December 31, $ 75 $ 83 $ 85 Notes receivable from Caterpillar as of December 31, $ 296 $ 662 $ 559 Other receivables from Caterpillar as of December 31, (2) $ 64 $ 33 $ 31 Interest expense $ 32 $ 35 $ 21 Interest income on Notes Receivable with Caterpillar (1) $ 26 $ 30 $ 74 Fees on committed credit facility extended to Caterpillar (1) $ 5 $ 40 $ 40 (1) Included in Other revenues, net in the Consolidated Statements of Profit. (2) Included in Other assets in the Consolidated Statements of Financial Position. We have agreements with Caterpillar to purchase certain trade receivables at a discount. Information pertaining to these purchases was as follows: (Millions of dollars) 2019 2018 2017 Purchases made $ 42,817 $ 42,961 $ 34,667 Discounts earned $ 455 $ 375 $ 253 Purchased Receivables as of December 31, $ 4,448 $ 4,691 $ 3,461 We participate in certain marketing programs offered in conjunction with Caterpillar that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. During 2019 , 2018 and 2017 , relative to such programs, we received $351 million , $335 million and $277 million , respectively. We have Finance receivables, net and Equipment on operating leases, net with Caterpillar of $139 million and $56 million as of December 31, 2019 and 2018 , respectively. For the years ended December 31, 2019 , 2018 and 2017 , we recognized revenues of $16 million , $9 million and $4 million , respectively, related to these finance receivables and operating leases. For the years ended December 31, 2019 , 2018 and 2017 , we recognized depreciation related to these operating leases of $11 million , $5 million and $3 million , respectively. At December 31, 2019 and 2018 , $562 million and $450 million , respectively, of our portfolio was subject to guarantees by Caterpillar and affiliates. We participate in various benefit plans, which are administered by Caterpillar. These plans include employee medical plans and postretirement benefit plans. We reimburse Caterpillar for these charges. During 2019 , 2018 and 2017 , these charges amounted to $35 million , $34 million and $31 million , respectively. Included in these charges are contributions to defined benefit plans in the amount of $9 million , $9 million and $8 million in 2019 , 2018 and 2017 , respectively. These contributions are related to our participation in the following defined benefit plans that are administered by Caterpillar: the Caterpillar Inc. Retirement Income Plan, the Caterpillar Inc. Supplemental Retirement Plan and the Caterpillar Inc. Retiree Benefit Program. The total cost of the defined benefit plans is determined by actuarial valuation and we receive an allocation of the service and prior service cost based on headcount. We participate in the Caterpillar stock incentive plans. In 2019 , 2018 and 2017 , Caterpillar allocated to us $8 million annually in expenses related to stock based compensation. Further information about these plans is available in Caterpillar’s 2019 Annual Report on Form 10-K filed separately with the Securities and Exchange Commission. Caterpillar provides operational and administrative support, which is integral to the conduct of our business. In 2019 , 2018 and 2017 , these operational and support charges for which we reimburse Caterpillar amounted to $46 million , $35 million and $30 million , respectively. In addition, we provide administrative support services to certain Caterpillar subsidiaries. Caterpillar reimburses us for these charges. During 2019 , 2018 and 2017 , these charges amounted to $13 million , $11 million and $9 million, respectively. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year.

Segment and Geographic Informat

Segment and Geographic Information	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Segment and Geographic Information	SEGMENT AND GEOGRAPHIC INFORMATION A. Basis for Segment Information We report information internally for operating segments based on management responsibility. Our operating segments provide financing alternatives to customers and dealers around the world for Caterpillar products, as well as financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans within each of the operating 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. • EAME - 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 - Provides financing for large mining customers worldwide. C. Segment Measurement and Reconciliations Cash, debt and other expenses are allocated to our segments based on their respective portfolios. The related Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt. The performance of each segment is assessed based on a consistent leverage ratio. The Provision for credit losses is based on each segment's respective finance receivable portfolio. Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures. Reconciling items are created based on accounting differences between segment reporting and consolidated external reporting. For the reconciliation of Profit before income taxes, we have grouped the reconciling items as follows: • Unallocated - This item is related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the special purpose corporation (see Note 11 for additional information) and other miscellaneous items. • Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting. • Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows: ◦ Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities. ◦ The impact of differences between the actual leverage and the segment leverage ratios. ◦ Interest expense includes realized forward points on foreign currency forward contracts. ◦ The net gain or loss from interest rate derivatives is excluded from segment reporting. Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31: (Millions of dollars) 2019 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2019 Capital expenditures North America $ 1,633 $ 493 $ 390 $ 583 $ 19 $ 15,540 $ 1,106 EAME 289 75 56 65 4 4,991 92 Asia/Pacific 386 181 112 11 15 4,801 11 Latin America 251 43 98 24 29 2,909 55 Caterpillar Power Finance 101 (41 ) 42 3 71 1,673 — Mining 277 40 57 127 24 2,488 254 Total Segments 2,937 791 755 813 162 32,402 1,518 Unallocated 59 (342 ) 256 — — 1,896 16 Timing (30 ) (17 ) — — — 16 — Methodology — 196 (224 ) — — (216 ) — Inter-segment Eliminations (1) — — — — — (405 ) — Total $ 2,966 $ 628 $ 787 $ 813 $ 162 $ 33,693 $ 1,534 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2018 Capital expenditures North America $ 1,533 $ 434 $ 363 $ 572 $ 42 $ 15,632 $ 1,108 EAME 279 14 50 71 58 4,862 108 Asia/Pacific 357 168 111 18 (5 ) 4,639 14 Latin America 254 (3 ) 101 27 73 2,972 32 Caterpillar Power Finance 110 (143 ) 55 2 171 2,259 — Mining 256 34 60 128 8 2,234 192 Total Segments 2,789 504 740 818 347 32,598 1,454 Unallocated 92 (267 ) 248 1 — 1,957 104 Timing (34 ) (1 ) — — 7 55 1 Methodology — 197 (231 ) — — (159 ) — Inter-segment Eliminations (1) — — — — — (270 ) — Total $ 2,847 $ 433 $ 757 $ 819 $ 354 $ 34,181 $ 1,559 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2017 Capital expenditures North America $ 1,337 $ 353 $ 306 $ 520 $ 36 $ 14,790 $ 992 EAME 307 116 37 80 4 4,332 103 Asia/Pacific 267 99 87 25 (5 ) 4,214 6 Latin America 292 5 121 38 55 3,407 54 Caterpillar Power Finance 155 42 44 3 39 2,746 — Mining 272 49 50 142 8 2,399 210 Total Segments 2,630 664 645 808 137 31,888 1,365 Unallocated 90 (220 ) 193 — — 1,719 8 Timing (31 ) (6 ) — 2 (5 ) 53 — Methodology — 152 (171 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 2,689 $ 590 $ 667 $ 810 $ 132 $ 33,160 $ 1,373 (1) Elimination is primarily related to intercompany loans. Geographic information: (Millions of dollars) 2019 2018 2017 Revenues Inside U.S. $ 1,756 $ 1,684 $ 1,551 All other 1,210 1,163 1,138 Total $ 2,966 $ 2,847 $ 2,689 Equipment on operating leases, net and property and equipment, net (included in Other assets) 2019 2018 Inside U.S. $ 2,686 $ 2,775 Inside Canada 479 402 All other 553 513 Total $ 3,718 $ 3,690

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Financial Data (Unaudited)	SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Millions of dollars) 2019 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 736 $ 757 $ 748 $ 725 Profit before income taxes $ 142 $ 141 $ 184 $ 161 Profit $ 98 $ 79 $ 129 $ 104 2018 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 690 $ 723 $ 735 $ 699 Profit before income taxes $ 124 $ 100 $ 163 $ 46 Profit $ 91 $ 71 $ 125 $ 18

Critical Accounting Policies (P

Critical Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Residual values for leased assets	Residual values for leased assets The residual value of leased equipment is determined based on its estimated end-of-term market value. We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends. The following critical factors are also considered in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options. Upon termination of the lease, the equipment is either purchased by the lessee or sold to a third party, in which case we may record a gain or a loss for the difference between the estimated residual value and the sale price. During the term of our leases, we monitor residual values. For operating leases, adjustments to depreciation expense reflecting changes in residual value estimates are recorded prospectively on a straight-line basis. For finance leases, residual value adjustments are recognized through a reduction of finance revenue over the remaining lease term. We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, a test for recoverability is performed by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, the fair value of the equipment on operating leases is measured in accordance with the fair value measurement framework. An impairment charge is recognized for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value. At December 31, 2019 , the aggregate residual value of equipment on operating leases was $2.15 billion. Without consideration of other factors such as third-party residual guarantees or contractual customer purchase options, a 10 percent non-temporary decrease in the market value of our equipment subject to operating leases would reduce residual value estimates and result in the recognition of approximately $80 million of additional annual depreciation expense.
Allowance for credit losses	Allowance for credit losses The allowance for credit losses is an estimate of the losses inherent in our finance receivable portfolio and includes consideration of accounts that have been individually identified as impaired, as well as pools of finance receivables where it is probable that certain receivables in the pool are impaired but the individual accounts cannot yet be identified. In identifying and measuring impairment, management takes into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of underlying collateral and current economic conditions. Accounts are identified for individual review based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated and determined to be impaired is based on the present value of expected future cash flows discounted at the receivables' effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. The allowance for credit losses attributable to the remaining accounts not yet individually identified as impaired is estimated based on loss forecast models utilizing probabilities of default, our estimate of the loss emergence period and the estimated loss given default. In addition, qualitative factors not able to be fully captured in our loss forecast models including industry trends, macroeconomic factors and model imprecision are considered in the evaluation of the adequacy of the allowance for credit losses. These qualitative factors are subjective and require a degree of management judgment. While management believes it has exercised prudent judgment and applied reasonable assumptions, there can be no assurance that in the future, changes in economic conditions or other factors would not cause changes in the financial health of our customers. If the financial health of our customers deteriorates, the timing and level of payments received could be impacted and therefore, could result in a change to our estimated losses.
Income taxes	Income taxes We are subject to the income tax laws of the many jurisdictions in which we operate. These tax laws are complex, and the manner in which they apply to our facts is sometimes open to interpretation. In establishing the provision for income taxes, we must make judgments about the application of these inherently complex tax laws. Our income tax positions and analysis are based on currently enacted tax law. Future changes in tax law or related interpretations could significantly impact the provision for income taxes, the amount of taxes payable, and the deferred tax asset and liability balances. Changes in tax law are reflected in the period of enactment with related interpretations considered in the period received. Despite our belief that our tax return positions are consistent with applicable tax laws, we believe that taxing authorities could challenge certain positions. Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment reached through negotiations or litigation. We record tax benefits for uncertain tax positions based upon management's evaluation of the information available at the reporting date. To be recognized in the financial statements, a tax benefit must be at least more likely than not of being sustained based on technical merits. The benefit for positions meeting the recognition threshold is measured as the largest benefit more likely than not of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Significant judgment is required in making these determinations and adjustments to unrecognized tax benefits may be necessary to reflect actual taxes payable upon settlement. Adjustments related to positions impacting the effective tax rate affect the provision for income taxes. Adjustments related to positions impacting the timing of deductions impact deferred tax assets and liabilities. Deferred tax assets generally represent tax benefits for tax deductions or credits available in future tax returns. Certain estimates and assumptions are required to determine whether it is more likely than not that all or some portion of the benefit of a deferred tax asset will not be realized. In making this assessment, management analyzes the trend of U.S. GAAP earnings and estimates the impact of future taxable income, reversing temporary differences and available prudent and feasible tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate realizability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in the provision for income taxes. Income taxes are based on the statutory tax rate of the jurisdiction in which earnings are subject to taxation. That statutory rate may differ from the statutory rate of the jurisdiction in which that entity is incorporated. Taxes are paid in the jurisdictions where earnings are subject to taxation. Additional information related to income taxes is included in Note 12 in the Notes to Consolidated Financial Statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs) in which Cat Financial is the primary beneficiary. We consolidate all VIEs where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 11 for more information. We have customers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. Certain amounts for prior periods have been reclassified to conform with current period financial statement presentation.
Revenue Recognition	Revenue Recognition Finance revenue is recorded over the life of the related finance receivable using the interest method, including the accretion of purchased receivables discount and certain direct origination costs that are deferred. Revenue from rental payments received on operating leases is recognized on a straight-line basis over the term of the lease. Recognition of finance revenue and operating lease revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed and previously suspended income is recognized when the account becomes current and collection of remaining amounts is considered probable. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible. We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate. Other revenue includes: (1) late charges, (2) fee revenue, primarily commitment fees and fees on committed lines of credit or letters of credit, (3) gains and losses on sales of returned or repossessed equipment, (4) impairments on returned or repossessed equipment held for sale, (5) gains and losses on loan and lease sales and (6) other miscellaneous revenues. Other revenue items are recognized in accordance with relevant authoritative pronouncements.
Depreciation	Depreciation Depreciation for equipment on operating leases is recognized using the straight-line method over the lease term, typically one to seven years. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term.
Derivative Financial Instruments	Derivative Financial Instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. All derivatives are recorded at fair value. See Note 9 for additional information.
Foreign Currency Translation	Foreign Currency Translation The functional currency for most of our subsidiaries is the respective local currency. Gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency are included in Other income (expense) in the Consolidated Statements of Profit. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income/(loss) in the Consolidated Statements of Financial Position.
Estimates in Financial Statements	Estimates in Financial Statements The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates.

Finance Receivables (Tables)

Finance Receivables (Tables)	12 Months Ended
	Dec. 31, 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 as of December 31, was as follows: (Millions of dollars) 2019 2018 Retail loans, net (1) $ 15,424 $ 15,509 Retail leases, net 7,660 7,499 Caterpillar purchased receivables, net 4,448 4,691 Wholesale loans, net (1) 664 626 Wholesale leases, net 60 109 Recorded investment in finance receivables 28,256 28,434 Less: Allowance for credit losses (424 ) (511 ) Total finance receivables, net $ 27,832 $ 27,923 (1) Includes failed sale leasebacks.
Maturities of finance receivables	Maturities of our finance receivables, as of December 31, 2019 , reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail loans Retail leases Caterpillar purchased receivables Wholesale loans Wholesale leases Total 2020 $ 6,486 $ 3,184 $ 4,505 $ 424 $ 17 $ 14,616 2021 3,696 2,043 — 121 12 5,872 2022 2,693 1,105 — 83 5 3,886 2023 1,688 494 — 7 2 2,191 2024 648 196 — 1 1 846 Thereafter 435 80 — 3 1 519 Total 15,646 7,102 4,505 639 38 27,930 Guaranteed residual value (1) 53 416 — 25 24 518 Unguaranteed residual value — 829 — — 2 831 Unearned income (275 ) (687 ) (57 ) — (4 ) (1,023 ) Total $ 15,424 $ 7,660 $ 4,448 $ 664 $ 60 $ 28,256 (1) For Retail loans and Wholesale loans, represents residual value on failed sale leasebacks.
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2019 Allowance for Credit Losses: Customer Dealer Caterpillar Purchased Receivables Total Balance at beginning of year $ 486 $ 21 $ 4 $ 511 Receivables written off (281 ) — — (281 ) Recoveries on receivables previously written off 44 — — 44 Provision for credit losses 138 24 — 162 Adjustment due to sale of receivables (11 ) — — (11 ) Foreign currency translation adjustment (1 ) — — (1 ) Balance at end of year $ 375 $ 45 $ 4 $ 424 Individually evaluated for impairment $ 178 $ 39 $ — $ 217 Collectively evaluated for impairment 197 6 4 207 Ending Balance $ 375 $ 45 $ 4 $ 424 Recorded Investment in Finance Receivables: Individually evaluated for impairment $ 594 $ 78 $ — $ 672 Collectively evaluated for impairment 18,770 4,366 4,448 27,584 Ending Balance $ 19,364 $ 4,444 $ 4,448 $ 28,256 (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) December 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 $ 72 $ 23 $ 55 $ 150 $ 8,121 $ 8,271 $ 15 EAME 30 31 141 202 2,955 3,157 4 Asia/Pacific 40 14 29 83 2,992 3,075 8 Mining 5 — 19 24 1,851 1,875 — Latin America 41 23 80 144 1,178 1,322 2 Caterpillar Power Finance 10 10 225 245 1,419 1,664 — Dealer North America — — — — 2,514 2,514 — EAME — — — — 600 600 — Asia/Pacific — — — — 487 487 — Mining — — — — 4 4 — Latin America — — 78 78 758 836 — Caterpillar Power Finance — — — — 3 3 — Caterpillar Purchased Receivables (1) North America 15 6 18 39 2,450 2,489 EAME 1 — 2 3 574 577 Asia/Pacific 1 — — 1 891 892 Mining — — — — — — Latin America — — — — 475 475 Caterpillar Power Finance — — — — 15 15 Total $ 215 $ 107 $ 647 $ 969 $ 27,287 $ 28,256 $ 29 (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 EAME 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 — EAME — — — — 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 EAME 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 December 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 $ 6 $ 6 $ — $ 10 $ 10 $ — EAME — — — 1 1 — Asia/Pacific — — — 1 1 — Mining 22 22 — 33 33 — Latin America 8 8 — 29 29 — Caterpillar Power Finance 58 58 — 69 83 — Total $ 94 $ 94 $ — $ 143 $ 157 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 30 $ 30 $ 11 $ 40 $ 41 $ 14 EAME 61 61 29 92 92 57 Asia/Pacific 8 8 2 4 4 2 Mining 37 36 9 56 55 26 Latin America 58 58 20 75 75 25 Caterpillar Power Finance 306 319 107 449 455 164 Total $ 500 $ 512 $ 178 $ 716 $ 722 $ 288 Total Impaired Finance Receivables North America $ 36 $ 36 $ 11 $ 50 $ 51 $ 14 EAME 61 61 29 93 93 57 Asia/Pacific 8 8 2 5 5 2 Mining 59 58 9 89 88 26 Latin America 66 66 20 104 104 25 Caterpillar Power Finance 364 377 107 518 538 164 Total $ 594 $ 606 $ 178 $ 859 $ 879 $ 288 (Millions of dollars) Year Ended Year Ended Year Ended Impaired Finance Receivables With No Allowance Recorded Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized North America $ 9 $ — $ 16 $ 1 $ 13 $ 1 EAME 6 — 14 — 48 1 Asia/Pacific — — 28 3 24 2 Mining 27 1 57 2 126 7 Latin America 21 1 38 2 64 3 Caterpillar Power Finance 54 3 130 7 221 9 Total $ 117 $ 5 $ 283 $ 15 $ 496 $ 23 Impaired Finance Receivables With An Allowance Recorded North America $ 34 $ 2 $ 49 $ 2 $ 49 $ 1 EAME 81 2 53 2 6 — Asia/Pacific 9 1 5 — 31 2 Mining 48 2 46 3 — — Latin America 72 5 67 3 99 4 Caterpillar Power Finance 396 11 378 12 180 6 Total $ 640 $ 23 $ 598 $ 22 $ 365 $ 13 Total Impaired Finance Receivables North America $ 43 $ 2 $ 65 $ 3 $ 62 $ 2 EAME 87 2 67 2 54 1 Asia/Pacific 9 1 33 3 55 4 Mining 75 3 103 5 126 7 Latin America 93 6 105 5 163 7 Caterpillar Power Finance 450 14 508 19 401 15 Total $ 757 $ 28 $ 881 $ 37 $ 861 $ 36
Recorded investment in Customer finance receivables on non-accrual status	The recorded investment in Customer finance receivables on non-accrual status as of December 31, was as follows: (Millions of dollars) 2019 2018 North America $ 44 $ 77 EAME 165 154 Asia/Pacific 21 4 Mining 47 50 Latin America 89 106 Caterpillar Power Finance 361 416 Total $ 727 $ 807
Finance receivables modified as TDRs	Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2019 , 2018 and 2017 , was as follows: (Dollars in millions) Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 15 $ 11 $ 11 EAME 19 17 17 Asia/Pacific — — — Mining 2 8 8 Latin America 5 5 3 Caterpillar Power Finance 21 168 165 Total 62 $ 209 $ 204 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 38 $ 21 $ 21 EAME — — — Asia/Pacific — — — Mining 1 29 29 Latin America 1 3 3 Caterpillar Power Finance 12 133 99 Total 52 $ 186 $ 152 Year Ended Number of Contracts Pre-TDR Recorded Investment Post-TDR Recorded Investment North America 43 $ 34 $ 35 EAME 4 1 1 Asia/Pacific 10 39 31 Mining 2 57 56 Latin America 17 26 27 Caterpillar Power Finance (1) 68 422 407 Total 144 $ 579 $ 557 (1) In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2019 , 2018 and 2017 , which had been modified within twelve months prior to the default date, were as follows: (Dollars in millions) Year Ended Year Ended Year Ended Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment Number of Contracts Post-TDR Recorded Investment North America 11 $ 5 10 $ 10 4 $ 3 EAME — — — — 1 — Asia/Pacific — — — — 4 1 Latin America (1) — — 3 1 243 17 Caterpillar Power Finance 1 10 3 33 — — Total 12 $ 15 16 $ 44 252 $ 21 (1) In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.

Equipment on Operating Leases (

Equipment on Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Carrying amount of Equipment on operating leases, net	The carrying amount of Equipment on operating leases, net in the Consolidated Statements of Financial Position as of December 31, was as follows: (Millions of dollars) 2019 2018 Equipment on operating leases, at cost $ 5,171 $ 5,201 Less: Accumulated depreciation (1,588 ) (1,639 ) Equipment on operating leases, net $ 3,583 $ 3,562
Schedule of payments due for operating leases	At December 31, 2019 , payments due for operating leases were as follows: (Millions of dollars) 2020 2021 2022 2023 2024 Thereafter Total $ 812 $ 511 $ 268 $ 129 $ 59 $ 35 $ 1,814
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

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Other Assets [Abstract]
Schedule of Other assets	The components of Other assets as of December 31, were as follows: (Millions of dollars) 2019 2018 Customer and other miscellaneous receivables $ 494 $ 480 Collateral held for resale, at net realizable value 383 316 Deferred and refundable income taxes 142 191 Property and equipment, net 135 128 Other 138 153 Total Other assets $ 1,292 $ 1,268

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2019
Short-term Debt [Abstract]
Short-term borrowings	Short-term borrowings outstanding as of December 31, were comprised of the following: (Millions of dollars) 2019 2018 Balance Avg. Rate Balance Avg. Rate Commercial paper, net $ 4,168 1.3% $ 4,759 2.0% Bank borrowings 605 5.0% 526 5.3% Variable denomination floating rate demand notes 388 1.7% 438 2.2% Total $ 5,161 $ 5,723

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Long-term Debt, Unclassified [Abstract]
Long-term debt	Long-term debt outstanding as of December 31, was comprised of the following: (Millions of dollars) 2019 2018 Balance Avg. Rate Balance Avg. Rate Medium-term notes $ 22,739 2.6% $ 22,226 2.6% Unamortized discount and debt issuance costs (47 ) (57 ) Medium-term notes, net 22,692 22,169 Bank borrowings 642 6.6% 646 5.8% Total $ 23,334 $ 22,815
Aggregate amounts of maturities of long-term debt	Long-term debt outstanding as of December 31, 2019 , matures as follows: ( Millions of dollars) 2020 $ 6,194 2021 7,732 2022 4,744 2023 2,167 2024 2,157 Thereafter 340 Total $ 23,334

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)	12 Months Ended
	Dec. 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 as of December 31, were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of Financial Position Location 2019 2018 Designated derivatives Interest rate contracts Other assets $ 5 $ 4 Interest rate contracts Accrued expenses (25 ) (40 ) Cross currency contracts Other assets 67 88 Cross currency contracts Accrued expenses (3 ) (9 ) $ 44 $ 43 Undesignated derivatives Foreign exchange contracts Other assets $ 7 $ 15 Foreign exchange contracts Accrued expenses (21 ) (12 ) Cross currency contracts Other assets 5 5 Cross currency contracts Accrued expenses (1 ) (2 ) $ (10 ) $ 6
Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit	The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Cash Flow Hedges (Millions of dollars) Year Ended December 31, 2019 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI Classification Amount of Gains (Losses) Reclassified from AOCI Amount of the line items in the Consolidated Statements of Profit Interest rate contracts $ (70 ) Interest expense $ (8 ) $ (787 ) Cross currency contracts 93 Other income (expense) 37 (24 ) Interest expense 33 (787 ) $ 23 $ 62 Year Ended December 31, 2018 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (38 ) Interest expense $ — $ — Cross currency contracts 165 Other income (expense) 148 — Interest expense 19 — $ 127 $ 167 $ — Year Ended December 31, 2017 Recognized in Earnings Amount of Gains (Losses) Recognized in AOCI (Effective Portion) Classification Reclassified from AOCI to Earnings (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ — Interest expense $ 3 $ — Cross currency contracts (77 ) Other income (expense) (81 ) — Interest expense 6 — $ (77 ) $ (72 ) $ —
Schedule of effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit	The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows for the years ended December 31: (Millions of dollars) Classification 2019 2018 2017 Foreign exchange contracts Other income (expense) $ (38 ) $ 16 $ 14 Cross currency contracts Other income (expense) 1 3 (5 ) $ (37 ) $ 19 $ 9
Schedule of effect of net settlement provisions of the master netting agreements on our derivative balances	The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event as of December 31, was as follows: (Millions of dollars) 2019 2018 Derivative Assets Gross Amount of Recognized Assets $ 84 $ 112 Gross Amounts Offset — — Net Amount of Assets (1) 84 112 Gross Amounts Not Offset (21 ) (34 ) Net Amount $ 63 $ 78 Derivative Liabilities Gross Amount of Recognized Liabilities $ (50 ) $ (63 ) Gross Amounts Offset — — Net Amount of Liabilities (1) (50 ) (63 ) Gross Amounts Not Offset 21 34 Net Amount $ (29 ) $ (29 ) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income/(Loss) (Tables)	12 Months Ended
	Dec. 31, 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 Balance at December 31, 2016 $ (994 ) $ (1 ) $ (995 ) Other comprehensive income/(loss) before reclassifications 407 (49 ) 358 Amounts reclassified from accumulated other comprehensive (income)/loss — 45 45 Other comprehensive income/(loss) 407 (4 ) 403 Balance at December 31, 2017 $ (587 ) $ (5 ) $ (592 ) Other comprehensive income/(loss) before reclassifications (302 ) 98 (204 ) Amounts reclassified from accumulated other comprehensive (income)/loss — (129 ) (129 ) Other comprehensive income/(loss) (302 ) (31 ) (333 ) Balance at December 31, 2018 $ (889 ) $ (36 ) $ (925 ) Other comprehensive income/(loss) before reclassifications 14 17 31 Amounts reclassified from accumulated other comprehensive (income)/loss — (48 ) (48 ) Adjustment to adopt new accounting guidance (1) 98 (1 ) 97 Other comprehensive income/(loss) 112 (32 ) 80 Balance at December 31, 2019 $ (777 ) $ (68 ) $ (845 ) (1) See Note 1 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 during the years ended December 31, 2019 , 2018 and 2017 was as follows: (Millions of dollars) Derivative financial instruments Classification of income (expense) 2019 2018 2017 Cross currency contracts Other income (expense) $ 37 $ 148 $ (81 ) Cross currency contracts Interest expense 33 19 6 Interest rate contracts Interest expense (8 ) — 3 Reclassifications before tax 62 167 (72 ) Tax (provision) benefit (14 ) (38 ) 27 Total reclassifications from Accumulated other comprehensive income/(loss) $ 48 $ 129 $ (45 )

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Components of lease cost	The components of lease cost were as follows: (Millions of dollars) Year Ended Operating lease cost $ 9 Short-term lease cost $ 1 Variable lease cost $ 1
Supplemental information related to operating leases	Supplemental information related to operating leases was as follows: (Millions of dollars) December 31, January 1, Other assets $ 21 $ 22 Other liabilities $ 21 $ 23 Weighted average remaining lease term 5 years 4 years Weighted average discount rates 2.4 % 2.6 %
Maturities of operating lease liabilities	At December 31, 2019 , maturities of operating lease liabilities were as follows: (Millions of dollars) 2020 $ 7 2021 5 2022 3 2023 3 2024 1 Thereafter 3 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) Year Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 8 Right-of-use assets obtained in exchange for operating lease obligations $ 2

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Reconciliation of the U.S. federal statutory rate to effective rate	A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: (Millions of dollars) 2019 2018 2017 Taxes computed at U.S. statutory rates $ 132 21.0 % $ 91 21.0 % $ 206 35.0 % (Decreases) increases in taxes resulting from: State Income Tax, net of Federal Tax 1 0.2 % 1 0.2 % 2 0.3 % Subsidiaries' results subject to tax rates other than U.S. statutory rates 32 5.1 % 28 6.5 % (31 ) (5.3 )% Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (1) 2 0.3 % — — % (16 ) (2.7 )% Foreign currency translation taxed at non-U.S. subsidiaries (1 ) (0.2 )% (1 ) (0.2 )% (12 ) (2.0 )% U.S. deferred tax rate change — — % (7 ) (1.6 )% (334 ) (56.6 )% Mandatory deemed repatriation of non-U.S. earnings — — % (5 ) (1.2 )% 183 31.0 % Prior year tax adjustments 9 1.4 % 11 2.5 % — — % Valuation allowances 21 3.4 % (7 ) (1.6 )% — — % Other, net — — % (3 ) (0.7 )% (2 ) (0.4 )% Provision (benefit) for income taxes $ 196 31.2 % $ 108 24.9 % $ (4 ) (0.7 )% (1) Excludes provisionally estimated net benefit from 2017 U.S. tax reform.
Components of Profit before income taxes	The components of Profit before income taxes for the years ended December 31, were as follows: (Millions of dollars) 2019 2018 2017 U.S. $ 257 $ 213 $ 285 Non-U.S. 371 220 305 Total $ 628 $ 433 $ 590
Components of the Provision (benefit) for income taxes	The components of the Provision (benefit) for income taxes were as follows for the years ended December 31: (Millions of dollars) 2019 2018 2017 Current income tax provision (benefit): U.S. $ 13 $ (46 ) $ 157 Non-U.S. 161 112 102 State (U.S.) 2 1 1 176 67 260 Deferred income tax provision (benefit): U.S. 32 67 (239 ) Non-U.S. (11 ) (26 ) (28 ) State (U.S.) (1 ) — 3 20 41 (264 ) Total Provision (benefit) for income taxes $ 196 $ 108 $ (4 )
Deferred income tax assets and liabilities	The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: (Millions of dollars) 2019 2018 Assets: Other assets $ 118 $ 108 Liabilities: Other liabilities (680 ) (653 ) Deferred income taxes, net $ (562 ) $ (545 ) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) 2019 2018 Deferred income tax assets: Allowance for credit losses $ 124 $ 111 Tax carryforwards 39 44 163 155 Deferred income tax liabilities (primarily lease basis differences) (508 ) (508 ) Valuation allowance for deferred income tax assets (23 ) (2 ) Deferred income tax on translation adjustment (194 ) (190 ) Deferred income taxes, net $ (562 ) $ (545 )
Summary of net operating loss carryforwards	As of December 31, 2019 , amounts and expiration dates of net operating loss (NOL) carryforwards in various U.S. state taxing jurisdictions were: (Millions of dollars) 2020 2021 2022 2023 2024-2039 Unlimited Total $ — $ 5 $ 5 $ 6 $ 93 $ 5 $ 114 The gross deferred income tax asset associated with these NOL carryforwards is $9 million as of December 31, 2019 , partially offset by a valuation allowance of $2 million . In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis. At December 31, 2019 , approximately $6 million of U.S. foreign tax credits were available for carryforward. These credits expire in 2028. As of December 31, 2019 , amounts and expiration dates of NOL carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2020 2021 2022 2023 2024-2034 Unlimited Total $ — $ 9 $ 2 $ 6 $ 6 $ 121 $ 144 Valuation allowances of $21 million have been recorded at certain non-U.S. subsidiaries that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets.
Schedule of unrecognized tax benefits	A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: (Millions of dollars) 2019 2018 2017 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ 119 $ — $ 4 Additions for income tax positions related to current year — 119 — Reductions for income tax positions related to settlements (2) — — (4 ) Balance at end of year $ 119 $ 119 $ — Amount that, if recognized, would impact the effective tax rate $ 119 $ 119 $ — (1) Foreign currency translation amounts are included within each line as applicable. (2) Includes cash payment or other reduction of assets to settle liability.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair values of financial instruments	Fair values of our financial instruments were as follows: (Millions of dollars) 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Levels Reference Cash and cash equivalents $ 690 $ 690 $ 766 $ 766 1 Restricted cash and cash equivalents (2) $ 5 $ 5 $ 7 $ 7 1 Finance receivables, net (excluding finance leases (1) ) $ 20,022 $ 20,133 $ 20,451 $ 20,510 3 Note 2 Interest rate contracts: In a receivable position $ 5 $ 5 $ 4 $ 4 2 Note 9 In a payable position $ (25 ) $ (25 ) $ (40 ) $ (40 ) 2 Note 9 Cross currency contracts In a receivable position $ 72 $ 72 $ 93 $ 93 2 Note 9 In a payable position $ (4 ) $ (4 ) $ (11 ) $ (11 ) 2 Note 9 Foreign exchange contracts: In a receivable position $ 7 $ 7 $ 15 $ 15 2 Note 9 In a payable position $ (21 ) $ (21 ) $ (12 ) $ (12 ) 2 Note 9 Short-term borrowings $ (5,161 ) $ (5,161 ) $ (5,723 ) $ (5,723 ) 1 Note 7 Long-term debt $ (23,334 ) $ (23,655 ) $ (22,815 ) $ (22,684 ) 2 Note 8 Guarantees $ — $ — $ — $ — 3 Note 11 (1) Represents finance leases and failed sale leasebacks of $7.81 billion as of December 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.

Transactions with Related Par_2

Transactions with Related Parties (Tables)	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Transactions with Related Parties	We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.61 billion from Caterpillar, and Caterpillar may borrow up to $2.05 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to nine years. We extended a $2 billion committed credit facility to Caterpillar, which expired in February 2019. Under this agreement, we received a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. Information concerning these agreements was as follows: (Millions of dollars) 2019 2018 2017 Payable to Caterpillar - borrowings as of December 31, $ 618 $ 1,518 $ 1,638 Payable to Caterpillar - other as of December 31, $ 75 $ 83 $ 85 Notes receivable from Caterpillar as of December 31, $ 296 $ 662 $ 559 Other receivables from Caterpillar as of December 31, (2) $ 64 $ 33 $ 31 Interest expense $ 32 $ 35 $ 21 Interest income on Notes Receivable with Caterpillar (1) $ 26 $ 30 $ 74 Fees on committed credit facility extended to Caterpillar (1) $ 5 $ 40 $ 40 (1) Included in Other revenues, net in the Consolidated Statements of Profit. (2) Included in Other assets in the Consolidated Statements of Financial Position. We have agreements with Caterpillar to purchase certain trade receivables at a discount. Information pertaining to these purchases was as follows: (Millions of dollars) 2019 2018 2017 Purchases made $ 42,817 $ 42,961 $ 34,667 Discounts earned $ 455 $ 375 $ 253 Purchased Receivables as of December 31, $ 4,448 $ 4,691 $ 3,461

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31: (Millions of dollars) 2019 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2019 Capital expenditures North America $ 1,633 $ 493 $ 390 $ 583 $ 19 $ 15,540 $ 1,106 EAME 289 75 56 65 4 4,991 92 Asia/Pacific 386 181 112 11 15 4,801 11 Latin America 251 43 98 24 29 2,909 55 Caterpillar Power Finance 101 (41 ) 42 3 71 1,673 — Mining 277 40 57 127 24 2,488 254 Total Segments 2,937 791 755 813 162 32,402 1,518 Unallocated 59 (342 ) 256 — — 1,896 16 Timing (30 ) (17 ) — — — 16 — Methodology — 196 (224 ) — — (216 ) — Inter-segment Eliminations (1) — — — — — (405 ) — Total $ 2,966 $ 628 $ 787 $ 813 $ 162 $ 33,693 $ 1,534 2018 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2018 Capital expenditures North America $ 1,533 $ 434 $ 363 $ 572 $ 42 $ 15,632 $ 1,108 EAME 279 14 50 71 58 4,862 108 Asia/Pacific 357 168 111 18 (5 ) 4,639 14 Latin America 254 (3 ) 101 27 73 2,972 32 Caterpillar Power Finance 110 (143 ) 55 2 171 2,259 — Mining 256 34 60 128 8 2,234 192 Total Segments 2,789 504 740 818 347 32,598 1,454 Unallocated 92 (267 ) 248 1 — 1,957 104 Timing (34 ) (1 ) — — 7 55 1 Methodology — 197 (231 ) — — (159 ) — Inter-segment Eliminations (1) — — — — — (270 ) — Total $ 2,847 $ 433 $ 757 $ 819 $ 354 $ 34,181 $ 1,559 2017 External Revenues Profit before income taxes Interest Expense Depreciation on equipment leased to others Provision for credit losses Assets at December 31, 2017 Capital expenditures North America $ 1,337 $ 353 $ 306 $ 520 $ 36 $ 14,790 $ 992 EAME 307 116 37 80 4 4,332 103 Asia/Pacific 267 99 87 25 (5 ) 4,214 6 Latin America 292 5 121 38 55 3,407 54 Caterpillar Power Finance 155 42 44 3 39 2,746 — Mining 272 49 50 142 8 2,399 210 Total Segments 2,630 664 645 808 137 31,888 1,365 Unallocated 90 (220 ) 193 — — 1,719 8 Timing (31 ) (6 ) — 2 (5 ) 53 — Methodology — 152 (171 ) — — (256 ) — Inter-segment Eliminations (1) — — — — — (244 ) — Total $ 2,689 $ 590 $ 667 $ 810 $ 132 $ 33,160 $ 1,373 (1) Elimination is primarily related to intercompany loans.
Geographic information	Geographic information: (Millions of dollars) 2019 2018 2017 Revenues Inside U.S. $ 1,756 $ 1,684 $ 1,551 All other 1,210 1,163 1,138 Total $ 2,966 $ 2,847 $ 2,689 Equipment on operating leases, net and property and equipment, net (included in Other assets) 2019 2018 Inside U.S. $ 2,686 $ 2,775 Inside Canada 479 402 All other 553 513 Total $ 3,718 $ 3,690

Selected Quarterly Financial _2

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial data (unaudited)	(Millions of dollars) 2019 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 736 $ 757 $ 748 $ 725 Profit before income taxes $ 142 $ 141 $ 184 $ 161 Profit $ 98 $ 79 $ 129 $ 104 2018 First quarter Second quarter Third quarter Fourth quarter Total revenues $ 690 $ 723 $ 735 $ 699 Profit before income taxes $ 124 $ 100 $ 163 $ 46 Profit $ 91 $ 71 $ 125 $ 18

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Period after which collection of future income is considered as not probable	120 days

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details 2) - Equipment on operating leases	12 Months Ended
	Dec. 31, 2019
Minimum
Depreciation
Lease term used to calculate depreciation	1 year
Maximum
Depreciation
Lease term used to calculate depreciation	7 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 3) $ in Millions	Jan. 01, 2019USD ($)
Accounting Standards Update 2018-02
New Accounting Pronouncements or Change in Accounting Principle
Amount, Reclassification of certain tax effects from AOCI to Retained Earnings	$ 97

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	$ 28,256	$ 28,434
Less: Allowance for credit losses	(424)	(511)	$ (365)
Total finance receivables, net	27,832	27,923
Retail loans
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	15,424	15,509
Retail leases
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	7,660	7,499
Caterpillar purchased receivables
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	4,448	4,691	$ 3,461
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	664	626
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Recorded Investment in Finance Receivables	$ 60	$ 109

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2020	$ 14,616
Amounts due in 2021	5,872
Amounts due in 2022	3,886
Amounts due in 2023	2,191
Amounts due in 2024	846
Amounts due thereafter	519
Total	27,930
Guaranteed residual value	518
Unguaranteed residual value	831
Unearned income	(1,023)
Recorded Investment in Finance Receivables	28,256	$ 28,434
Finance lease revenue (included in retail and wholesale finance revenue)	518
Retail loans
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2020	6,486
Amounts due in 2021	3,696
Amounts due in 2022	2,693
Amounts due in 2023	1,688
Amounts due in 2024	648
Amounts due thereafter	435
Total	15,646
Guaranteed residual value	53
Unguaranteed residual value	0
Unearned income	(275)
Recorded Investment in Finance Receivables	15,424	15,509
Retail leases
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2020	3,184
Amounts due in 2021	2,043
Amounts due in 2022	1,105
Amounts due in 2023	494
Amounts due in 2024	196
Amounts due thereafter	80
Total	7,102
Guaranteed residual value	416
Unguaranteed residual value	829
Unearned income	(687)
Recorded Investment in Finance Receivables	7,660	7,499
Caterpillar Purchased Receivables
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2020	4,505
Amounts due in 2021	0
Amounts due in 2022	0
Amounts due in 2023	0
Amounts due in 2024	0
Amounts due thereafter	0
Total	4,505
Guaranteed residual value	0
Unguaranteed residual value	0
Unearned income	(57)
Recorded Investment in Finance Receivables	4,448	4,691	$ 3,461
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2020	424
Amounts due in 2021	121
Amounts due in 2022	83
Amounts due in 2023	7
Amounts due in 2024	1
Amounts due thereafter	3
Total	639
Guaranteed residual value	25
Unguaranteed residual value	0
Unearned income	0
Recorded Investment in Finance Receivables	664	626
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Amounts due in 2020	17
Amounts due in 2021	12
Amounts due in 2022	5
Amounts due in 2023	2
Amounts due in 2024	1
Amounts due thereafter	1
Total	38
Guaranteed residual value	24
Unguaranteed residual value	2
Unearned income	(4)
Recorded Investment in Finance Receivables	$ 60	$ 109

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	$ 424	$ 511	$ 424	$ 511
Allowance for credit losses as a percent of our recorded investment in finance receivables			1.50%	1.80%
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	511	365
Receivables written off	(281)	(235)
Recoveries on receivables previously written off	44	46
Provision for credit losses	162	350
Adjustment due to sale of receivables	(11)	(7)
Foreign currency translation adjustment	(1)	(8)
Balance at end of year	424	511
Allowance for Credit Losses
Individually evaluated for impairment			$ 217	$ 302
Collectively evaluated for impairment			207	209
Allowance, Ending balance	424	511	424	511
Recorded Investment in Finance Receivables
Individually evaluated for impairment			672	937
Collectively evaluated for impairment			27,584	27,497
Recorded Investment in Finance Receivables, Ending Balance			28,256	28,434
Customer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	375	486	375	486
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year	486	353
Receivables written off	(281)	(235)
Recoveries on receivables previously written off	44	46
Provision for credit losses	138	337
Adjustment due to sale of receivables	(11)	(7)
Foreign currency translation adjustment	(1)	(8)
Balance at end of year	375	486
Allowance for Credit Losses
Individually evaluated for impairment			178	288
Collectively evaluated for impairment			197	198
Allowance, Ending balance	375	486	375	486
Recorded Investment in Finance Receivables
Individually evaluated for impairment			594	859
Collectively evaluated for impairment			18,770	18,724
Recorded Investment in Finance Receivables, Ending Balance			19,364	19,583
Dealer
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	45	21	45	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	24	12
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of year	45	21
Allowance for Credit Losses
Individually evaluated for impairment			39	14
Collectively evaluated for impairment			6	7
Allowance, Ending balance	45	21	45	21
Recorded Investment in Finance Receivables
Individually evaluated for impairment			78	78
Collectively evaluated for impairment			4,366	4,082
Recorded Investment in Finance Receivables, Ending Balance			4,444	4,160
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Allowance for credit losses	4	4	4	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	0	1
Adjustment due to sale of receivables	0	0
Foreign currency translation adjustment	0	0
Balance at end of year	4	4
Allowance for Credit Losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4	4
Allowance, Ending balance	$ 4	$ 4	4	4
Recorded Investment in Finance Receivables
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			4,448	4,691
Recorded Investment in Finance Receivables, Ending Balance			$ 4,448	$ 4,691

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Period after which collection of future income is considered as not probable	120 days
Financing Receivable, Recorded Investment, Past Due
Past Due	$ 969	$ 1,100
Current	27,287	27,334
Recorded Investment in Finance Receivables	28,256	28,434
91 Plus, Still Accruing	29	24
31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	215	213
61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	107	80
91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	647	807
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	19,364	19,583
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	150	167
Current	8,121	7,883
Recorded Investment in Finance Receivables	8,271	8,050
91 Plus, Still Accruing	15	14
Customer | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	72	65
Customer | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	23	18
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	55	84
Customer | EAME
Financing Receivable, Recorded Investment, Past Due
Past Due	202	181
Current	2,955	2,850
Recorded Investment in Finance Receivables	3,157	3,031
91 Plus, Still Accruing	4	5
Customer | EAME | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	30	19
Customer | EAME | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	31	9
Customer | EAME | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	141	153
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	83	42
Current	2,992	2,923
Recorded Investment in Finance Receivables	3,075	2,965
91 Plus, Still Accruing	8	5
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	40	25
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	14	9
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	29	8
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Past Due	24	38
Current	1,851	1,642
Recorded Investment in Finance Receivables	1,875	1,680
91 Plus, Still Accruing	0	0
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	5	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	19	9
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Past Due	144	138
Current	1,178	1,421
Recorded Investment in Finance Receivables	1,322	1,559
91 Plus, Still Accruing	2	0
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	41	38
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	23	29
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	80	71
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Past Due	245	395
Current	1,419	1,903
Recorded Investment in Finance Receivables	1,664	2,298
91 Plus, Still Accruing	0	0
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	10	10
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	10	1
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	225	384
Dealer
Financing Receivable, Recorded Investment, Past Due
Recorded Investment in Finance Receivables	4,444	4,160
Dealer | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	2,514	2,210
Recorded Investment in Finance Receivables	2,514	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 | EAME
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Current	600	619
Recorded Investment in Finance Receivables	600	619
91 Plus, Still Accruing	0	0
Dealer | EAME | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | EAME | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | EAME | 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	487	514
Recorded Investment in Finance Receivables	487	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	4	4
Recorded Investment in Finance Receivables	4	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	78	78
Current	758	731
Recorded Investment in Finance Receivables	836	809
91 Plus, Still Accruing	0	0
Dealer | Latin America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Dealer | Latin America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	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	3	4
Recorded Investment in Finance Receivables	3	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	4,448	4,691
Caterpillar Purchased Receivables | North America
Financing Receivable, Recorded Investment, Past Due
Past Due	39	52
Current	2,450	2,982
Recorded Investment in Finance Receivables	2,489	3,034
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	15	22
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	6	12
Caterpillar Purchased Receivables | North America | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	18	18
Caterpillar Purchased Receivables | EAME
Financing Receivable, Recorded Investment, Past Due
Past Due	3	2
Current	574	546
Recorded Investment in Finance Receivables	577	548
Caterpillar Purchased Receivables | EAME | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	1
Caterpillar Purchased Receivables | EAME | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	0
Caterpillar Purchased Receivables | EAME | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	2	1
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Past Due	1	7
Current	891	756
Recorded Investment in Finance Receivables	892	763
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	1	5
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	1
Caterpillar Purchased Receivables | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Recorded Investment, Past Due
Past Due	0	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	475	338
Recorded Investment in Finance Receivables	475	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	15	8
Recorded Investment in Finance Receivables	15	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 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Customer
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	$ 94	$ 143
Unpaid Principal Balance With No Allowance Recorded	94	157
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	500	716
Unpaid Principal Balance With An Allowance Recorded	512	722
Related Allowance	178	288
Recorded Investment, Total	594	859
Unpaid Principal Balance, Total	606	879
Related Allowance, Total	178	288
Average Recorded Investment With No Allowance Recorded	117	283	$ 496
Interest Income Recognized With No Allowance Recorded	5	15	23
Average Recorded Investment With An Allowance Recorded	640	598	365
Interest Income Recognized With An Allowance Recorded	23	22	13
Average Recorded Investment, Total	757	881	861
Interest Income Recognized, Total	28	37	36
Customer | North America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	6	10
Unpaid Principal Balance With No Allowance Recorded	6	10
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	30	40
Unpaid Principal Balance With An Allowance Recorded	30	41
Related Allowance	11	14
Recorded Investment, Total	36	50
Unpaid Principal Balance, Total	36	51
Related Allowance, Total	11	14
Average Recorded Investment With No Allowance Recorded	9	16	13
Interest Income Recognized With No Allowance Recorded	0	1	1
Average Recorded Investment With An Allowance Recorded	34	49	49
Interest Income Recognized With An Allowance Recorded	2	2	1
Average Recorded Investment, Total	43	65	62
Interest Income Recognized, Total	2	3	2
Customer | EAME
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	61	92
Unpaid Principal Balance With An Allowance Recorded	61	92
Related Allowance	29	57
Recorded Investment, Total	61	93
Unpaid Principal Balance, Total	61	93
Related Allowance, Total	29	57
Average Recorded Investment With No Allowance Recorded	6	14	48
Interest Income Recognized With No Allowance Recorded	0	0	1
Average Recorded Investment With An Allowance Recorded	81	53	6
Interest Income Recognized With An Allowance Recorded	2	2	0
Average Recorded Investment, Total	87	67	54
Interest Income Recognized, Total	2	2	1
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	8	4
Unpaid Principal Balance With An Allowance Recorded	8	4
Related Allowance	2	2
Recorded Investment, Total	8	5
Unpaid Principal Balance, Total	8	5
Related Allowance, Total	2	2
Average Recorded Investment With No Allowance Recorded	0	28	24
Interest Income Recognized With No Allowance Recorded	0	3	2
Average Recorded Investment With An Allowance Recorded	9	5	31
Interest Income Recognized With An Allowance Recorded	1	0	2
Average Recorded Investment, Total	9	33	55
Interest Income Recognized, Total	1	3	4
Customer | Mining
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	22	33
Unpaid Principal Balance With No Allowance Recorded	22	33
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	37	56
Unpaid Principal Balance With An Allowance Recorded	36	55
Related Allowance	9	26
Recorded Investment, Total	59	89
Unpaid Principal Balance, Total	58	88
Related Allowance, Total	9	26
Average Recorded Investment With No Allowance Recorded	27	57	126
Interest Income Recognized With No Allowance Recorded	1	2	7
Average Recorded Investment With An Allowance Recorded	48	46	0
Interest Income Recognized With An Allowance Recorded	2	3	0
Average Recorded Investment, Total	75	103	126
Interest Income Recognized, Total	3	5	7
Customer | Latin America
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	8	29
Unpaid Principal Balance With No Allowance Recorded	8	29
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	58	75
Unpaid Principal Balance With An Allowance Recorded	58	75
Related Allowance	20	25
Recorded Investment, Total	66	104
Unpaid Principal Balance, Total	66	104
Related Allowance, Total	20	25
Average Recorded Investment With No Allowance Recorded	21	38	64
Interest Income Recognized With No Allowance Recorded	1	2	3
Average Recorded Investment With An Allowance Recorded	72	67	99
Interest Income Recognized With An Allowance Recorded	5	3	4
Average Recorded Investment, Total	93	105	163
Interest Income Recognized, Total	6	5	7
Customer | Caterpillar Power Finance
Financing Receivable, Impaired
Recorded Investment With No Allowance Recorded	58	69
Unpaid Principal Balance With No Allowance Recorded	58	83
Related Allowance With No Allowance Recorded	0	0
Recorded Investment With An Allowance Recorded	306	449
Unpaid Principal Balance With An Allowance Recorded	319	455
Related Allowance	107	164
Recorded Investment, Total	364	518
Unpaid Principal Balance, Total	377	538
Related Allowance, Total	107	164
Average Recorded Investment With No Allowance Recorded	54	130	221
Interest Income Recognized With No Allowance Recorded	3	7	9
Average Recorded Investment With An Allowance Recorded	396	378	180
Interest Income Recognized With An Allowance Recorded	11	12	6
Average Recorded Investment, Total	450	508	401
Interest Income Recognized, Total	14	19	15
Dealer
Financing Receivable, Impaired
Recorded Investment, Total			0
Average Recorded Investment, Total
Dealer | Latin America
Financing Receivable, Impaired
Related Allowance	39	14
Recorded Investment, Total	78	78
Related Allowance, Total	39	14
Caterpillar Purchased Receivables
Financing Receivable, Impaired
Recorded Investment, Total	0	0	0
Average Recorded Investment, Total

Finance Receivables (Details 6)

Finance Receivables (Details 6) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Customer
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 727	$ 807
Customer | North America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	44	77
Customer | EAME
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	165	154
Customer | Asia/Pacific
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	21	4
Customer | Mining
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	47	50
Customer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	89	106
Customer | Caterpillar Power Finance
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	361	416
Dealer | Latin America
Financing Receivable, Recorded Investment, Past Due
Recorded investment in finance receivables on non-accrual status	$ 78	$ 78

Finance Receivables (Details 7)

Finance Receivables (Details 7) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)contracts	Dec. 31, 2018USD ($)contracts	Dec. 31, 2017USD ($)contracts
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0
Customer
Finance receivables modified as TDRs
Number of Contracts | contracts	62	52	144
Pre-TDR Recorded Investment	$ 209	$ 186	$ 579
Post-TDR Recorded Investment	$ 204	$ 152	$ 557
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	12	16	252
Post-TDR Recorded Investment	$ 15	$ 44	$ 21
Customer | North America
Finance receivables modified as TDRs
Number of Contracts | contracts	15	38	43
Pre-TDR Recorded Investment	$ 11	$ 21	$ 34
Post-TDR Recorded Investment	$ 11	$ 21	$ 35
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	11	10	4
Post-TDR Recorded Investment	$ 5	$ 10	$ 3
Customer | EAME
Finance receivables modified as TDRs
Number of Contracts | contracts	19	0	4
Pre-TDR Recorded Investment	$ 17	$ 0	$ 1
Post-TDR Recorded Investment	$ 17	$ 0	$ 1
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	0	0	1
Post-TDR Recorded Investment	$ 0	$ 0	$ 0
Customer | Asia/Pacific
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	10
Pre-TDR Recorded Investment	$ 0	$ 0	$ 39
Post-TDR Recorded Investment	$ 0	$ 0	$ 31
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	0	0	4
Post-TDR Recorded Investment	$ 0	$ 0	$ 1
Customer | Mining
Finance receivables modified as TDRs
Number of Contracts | contracts	2	1	2
Pre-TDR Recorded Investment	$ 8	$ 29	$ 57
Post-TDR Recorded Investment	$ 8	$ 29	$ 56
Customer | Latin America
Finance receivables modified as TDRs
Number of Contracts | contracts	5	1	17
Pre-TDR Recorded Investment	$ 5	$ 3	$ 26
Post-TDR Recorded Investment	$ 3	$ 3	$ 27
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	0	3	243
Post-TDR Recorded Investment	$ 0	$ 1	$ 17
Customer | Latin America | Amounts related to two customers
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts			238
Post-TDR Recorded Investment			$ 16
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Number of Contracts | contracts	21	12	68
Pre-TDR Recorded Investment	$ 168	$ 133	$ 422
Post-TDR Recorded Investment	$ 165	$ 99	$ 407
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts | contracts	1	3	0
Post-TDR Recorded Investment	$ 10	$ 33	$ 0
Customer | Caterpillar Power Finance | Amounts related to six customers
Finance receivables modified as TDRs
Number of Contracts | contracts			48
Pre-TDR Recorded Investment			$ 265
Post-TDR Recorded Investment			$ 258

Equipment on Operating Leases_2

Equipment on Operating Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment
Equipment on operating leases, net	$ 135	$ 128
Carrying amount of residual assets covered by residual value guarantees and subject to operating leases	11	25
Payments due for operating leases
2020	812
2021	511
2022	268
2023	129
2024	59
Thereafter	35
Total	1,814
Scheduled minimum rental payments for operating leases
2019		808
2020		503
2021		257
2022		115
2023		41
Thereafter		15
Total		1,739
Operating lease revenue	1,037	1,011	$ 985
Equipment on operating leases
Property, Plant and Equipment
Equipment on operating leases, at cost	5,171	5,201
Less: Accumulated depreciation	(1,588)	(1,639)
Equipment on operating leases, net	$ 3,583	$ 3,562

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Other Assets [Abstract]
Customer and other miscellaneous receivables	$ 494	$ 480
Collateral held for resale, at net realizable value	383	316
Deferred and refundable income taxes	142	191
Property and equipment, net	135	128
Other	138	153
Total Other assets	$ 1,292	$ 1,268

Concentration of Credit Risk (D

Concentration of Credit Risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Concentration Risk
Derivatives, Maximum exposure to credit loss	$ 84	$ 112
Construction related industries
Concentration Risk
Concentration Risk, Percentage	33.00%	33.00%
North America
Concentration Risk
Concentration Risk, Percentage	60.00%	60.00%

Credit Commitments (Details)

Credit Commitments (Details) $ in Millions	6 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Line of Credit Facility
Number of global credit facilities	3	3
Caterpillar's consolidated net worth	$ 14,630	$ 14,630
Minimum net worth required under the Credit Facility	$ 9,000	$ 9,000
Covenant interest coverage ratio, Numerator		1.77
Covenant interest coverage ratio, Denominator		1
Minimum interest coverage ratio, required by the Credit Facility, Numerator		1.15
Minimum interest coverage ratio, required by the Credit Facility, Denominator		1
Leverage Ratio, Numerator	7.65	7.46
Leverage Ratio, Denominator	1	1
Maximum Leverage Ratio, Permissible Under Credit Facility, Numerator		10
Maximum Leverage Ratio, Permissible Under Credit Facility, Denominator		1
Amount available	$ 10,500	$ 10,500
Short-term borrowings, Balance	5,161	5,161	$ 5,723
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,610	2,610
Maximum lending capacity to Caterpillar, Variable lending agreements	2,050	$ 2,050
Term lending agreements, maximum remaining maturity		9 years
Notes receivable from Caterpillar	296	$ 296	662	$ 559
Notes payable to Caterpillar	618	618	1,518	$ 1,638
Revolving credit facilities
Line of Credit Facility
Amount outstanding	0	0
Revolving credit facilities | Cat Financial
Line of Credit Facility
Amount available	7,750	7,750
364-day facility
Line of Credit Facility
Amount available	3,150	3,150
364-day facility | Cat Financial
Line of Credit Facility
Amount available	2,330	2,330
Three-year facility
Line of Credit Facility
Amount available	2,730	2,730
Three-year facility | Cat Financial
Line of Credit Facility
Amount available	2,010	2,010
Five-year facility
Line of Credit Facility
Amount available	4,620	4,620
Five-year facility | Cat Financial
Line of Credit Facility
Amount available	3,410	3,410
Credit lines with banks
Line of Credit Facility
Amount available	4,810	4,810
Amount outstanding	1,250	1,250	1,170
Variable denomination floating rate demand notes
Line of Credit Facility
Short-term borrowings, Balance	388	388	$ 438
Maximum amount of variable denomination floating rate demand notes outstanding	$ 1,250	$ 1,250

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt
Short-term borrowings, Balance	$ 5,161	$ 5,723
Commercial paper, net
Short-term Debt
Short-term borrowings, Balance	$ 4,168	$ 4,759
Short-term borrowings, Avg. Rate	1.30%	2.00%
Bank borrowings
Short-term Debt
Short-term borrowings, Balance	$ 605	$ 526
Short-term borrowings, Avg. Rate	5.00%	5.30%
Variable denomination floating rate demand notes
Short-term Debt
Short-term borrowings, Balance	$ 388	$ 438
Short-term borrowings, Avg. Rate	1.70%	2.20%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Jan. 09, 2020	Dec. 31, 2018
Debt Instrument
Medium-term notes, maximum remaining maturity	8 years
Long-term debt	$ 23,334		$ 22,815
Long-term debt outstanding maturity:
2020	6,194
2021	7,732
2022	4,744
2023	2,167
2024	2,157
Thereafter	340
Total	23,334		22,815
Medium-term notes, callable	29
Medium-term notes excluded from current maturities of long-term debt due to subsequent debt issuance	1,500
Medium-term notes
Debt Instrument
Long-term debt issued	6,090
Long-term debt issued at fixed interest rates	3,590
Long-term debt issued at floating interest rates	2,500
Long term debt, gross	22,739		22,226
Unamortized discount and debt issuance costs	(47)		(57)
Long-term debt	$ 22,692		$ 22,169
Long-term debt, Avg. Rate	2.60%		2.60%
Long-term debt outstanding maturity:
Total	$ 22,692		$ 22,169
Medium-term notes | Subsequent Event | 2021
Debt Instrument
Long term debt, gross		$ 750
Medium-term notes | Subsequent Event | 2022
Debt Instrument
Long term debt, gross		$ 750
Bank borrowings
Debt Instrument
Long-term debt	$ 642		$ 646
Long-term debt, Avg. Rate	6.60%		5.80%
Long-term debt outstanding maturity:
Total	$ 642		$ 646

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) $ in Millions	Dec. 31, 2019USD ($)
Derivative
Deferred net losses, interest rate risk, to be reclassified from equity to current earnings over the next twelve months	$ 16

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value
Asset Fair Value	$ 84	$ 112
Liability Fair Value	(50)	(63)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	44	43
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	5	4
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(25)	(40)
Designated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	67	88
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(3)	(9)
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value	(10)	6
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	7	15
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value	(21)	(12)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value	5	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	Dec. 31, 2019	Dec. 31, 2018
Derivative
Derivative instruments, notional amount	$ 8,930	$ 10,210

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss)
Interest Expense	$ (787)	$ (757)	$ (667)
Other income (expense)	(24)	(23)	(15)
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI	23	127	(77)
Amount of Gains (Losses) Reclassified from AOCI	62	167	(72)
Recognized in Earnings (Ineffective Portion)		0	0
Designated derivatives | Cash flow hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI	(70)	(38)	0
Amount of Gains (Losses) Reclassified from AOCI	(8)	0	3
Interest Expense	(787)
Recognized in Earnings (Ineffective Portion)		0	0
Designated derivatives | Cash flow hedges | Cross currency contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI	33	19	6
Interest Expense	(787)
Recognized in Earnings (Ineffective Portion)		0	0
Designated derivatives | Cash flow hedges | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI	93	165	(77)
Amount of Gains (Losses) Reclassified from AOCI	37	148	(81)
Other income (expense)	(24)
Recognized in Earnings (Ineffective Portion)		0	0
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(37)	19	9
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(38)	16	14
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	$ 1	$ 3	$ (5)

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amount of Recognized Assets	$ 84	$ 112
Gross Amounts Offset	0	0
Net Amount of Assets	84	112
Gross Amounts Not Offset	(21)	(34)
Net Amount	63	78
Gross Amount of Recognized Liabilities	(50)	(63)
Gross Amounts Offset	0	0
Net Amount of Liabilities	(50)	(63)
Gross Amounts Not Offset	21	34
Net Amount	$ (29)	$ (29)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	$ (925)	$ (592)	$ (995)
Other comprehensive income/(loss) before reclassifications	31	(204)	358
Amounts reclassified from accumulated other comprehensive (income)/loss	(48)	(129)	45
Adjustment to adopt reclassification of certain tax effects from AOCI	97
Other comprehensive income/(loss)	80	(333)	403
Balance at end of year	(845)	(925)	(592)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	(889)	(587)	(994)
Other comprehensive income/(loss) before reclassifications	14	(302)	407
Amounts reclassified from accumulated other comprehensive (income)/loss	0	0	0
Adjustment to adopt reclassification of certain tax effects from AOCI	98
Other comprehensive income/(loss)	112	(302)	407
Balance at end of year	(777)	(889)	(587)
Derivative financial instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	(36)	(5)	(1)
Other comprehensive income/(loss) before reclassifications	17	98	(49)
Amounts reclassified from accumulated other comprehensive (income)/loss	(48)	(129)	45
Adjustment to adopt reclassification of certain tax effects from AOCI	(1)
Other comprehensive income/(loss)	(32)	(31)	(4)
Balance at end of year	$ (68)	$ (36)	$ (5)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income/(Loss) (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)									$ (24)		$ (23)		$ (15)
Interest Expense									(787)		(757)		(667)
Reclassifications before tax	$ 161	$ 184	$ 141	$ 142	$ 46	$ 163	$ 100	$ 124	628		433		590
Tax (provision) benefit									(196)		(108)		4
Total reclassifications from Accumulated other comprehensive income/(loss)	$ 104	$ 129	$ 79	$ 98	$ 18	$ 125	$ 71	$ 91	410	[1]	305	[1]	586	[1]
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax									62		167		(72)
Tax (provision) benefit									(14)		(38)		27
Total reclassifications from Accumulated other comprehensive income/(loss)									48		129		(45)
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)									37		148		(81)
Interest Expense									33		19		6
Reclassifications out of Accumulated other comprehensive income/(loss) | Derivative financial instruments | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest Expense									$ (8)		$ 0		$ 3
[1]	Profit attributable to Caterpillar Financial Services Corporation.

Commitments and Contingent Li_3

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Guarantees
Guarantees, maximum potential amount of future payments	$ 65	$ 97
SPC's assets in Consolidated Statements of Financial Position	1,450	1,150
SPC's liabilities in Consolidated Statements of Financial Position	1,450	1,150
Unused commitments to extend credit to Caterpillar dealers	11,220
Unused commitments to extend credit to customers	693
Maximum
Guarantees
Related recorded liability	$ 1	$ 1

Commitments and Contingent Li_4

Commitments and Contingent Liabilities (Details 2) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 9
Short-term lease cost	1
Variable lease cost	$ 1

Commitments and Contingent Li_5

Commitments and Contingent Liabilities (Details 3) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019
Operating leases
Lease liabilities	$ 21
Weighted average remaining lease term	5 years	4 years
Weighted average discount rates	2.40%	2.60%
Other assets
Operating leases
Right-of-use assets	$ 21	$ 22
Other liabilities
Operating leases
Lease liabilities	$ 21	$ 23

Commitments and Contingent Li_6

Commitments and Contingent Liabilities (Details 4) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Maturities of operating lease liabilities
2020	$ 7
2021	5
2022	3
2023	3
2024	1
Thereafter	3
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

Commitments and Contingent Li_7

Commitments and Contingent Liabilities (Details 5) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 8
Right-of-use assets obtained in exchange for operating lease obligations	$ 2

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Provisionally estimated net benefit related to U.S. 2017 Tax Reform		$ 12	$ 151
Write-down of net deferred tax liabilities	$ 0	$ 7	$ 334
U.S. statutory tax rate (as a percent)	21.00%	21.00%	35.00%
Estimated cost of a mandatory deemed repatriation of non-U.S. earnings	$ 0	$ (5)	$ 183
Reconciliation of statutory rate to effective income tax rate
Taxes computed at U.S. statutory rates	$ 132	$ 91	$ 206
U.S. statutory tax rate (as a percent)	21.00%	21.00%	35.00%
(Decreases) increases in taxes resulting from:
State Income Tax, net of Federal Tax	$ 1	$ 1	$ 2
State Income Tax, net of Federal Tax (as a percent)	0.20%	0.20%	0.30%
Subsidiaries' results subject to tax rates other than U.S. statutory rates	$ 32	$ 28	$ (31)
Subsidiaries' results subject to tax rates other than U.S. statutory rates (as a percent)	5.10%	6.50%	(5.30%)
Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits	$ 2	$ 0	$ (16)
Income from non-U.S. subsidiaries taxed at U.S. statutory rates, net of foreign tax credits (as a percent)	0.30%	0.00%	(2.70%)
Foreign currency translation taxed at non-U.S. subsidiaries	$ (1)	$ (1)	$ (12)
Foreign currency translation taxed at non-U.S subsidiaries (as a percent)	(0.20%)	(0.20%)	(2.00%)
U.S. deferred tax rate change	$ 0	$ (7)	$ (334)
U.S. deferrd tax rate change (as a percent)	0.00%	(1.60%)	(56.60%)
Mandatory deemed repatriation of non-U.S. earnings	$ 0	$ (5)	$ 183
Mandatory deemed repatriation of non-U.S. earnings (as a percent)	0.00%	(1.20%)	31.00%
Prior year tax adjustments	$ 9	$ 11	$ 0
Prior year tax adjustments (as a percent)	1.40%	2.50%	0.00%
Valuation allowances	$ 21	$ (7)	$ 0
Valuation allowances (as a percent)	3.40%	(1.60%)	0.00%
Other, net	$ 0	$ (3)	$ (2)
Other, net (as a percent)	0.00%	(0.70%)	(0.40%)
Provision (benefit) for income taxes	$ 196	$ 108	$ (4)
Provision (benefit) for income taxes, Effective Income Tax Rate (as a percent)	31.20%	24.90%	(0.70%)
Prior year tax adjustments	$ 9	$ 11	$ 0
Valuation allowances	$ 21	$ (7)	$ 0

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of Profit before income taxes
U.S.									$ 257	$ 213	$ 285
Non-U.S.									371	220	305
Profit before income taxes	$ 161	$ 184	$ 141	$ 142	$ 46	$ 163	$ 100	$ 124	628	433	590
Current income tax provision (benefit)
U.S.									13	(46)	157
Non-U.S.									161	112	102
State (U.S.)									2	1	1
Current income tax provision (benefit)									176	67	260
Deferred income tax provision (benefit)
U.S.									32	67	(239)
Non-U.S.									(11)	(26)	(28)
State (U.S.)									(1)	0	3
Deferred income tax provision (benefit)									20	41	(264)
Total Provision (benefit) for income taxes									196	108	$ (4)
Income taxes payable	$ 160				$ 135				$ 160	$ 135

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets
Other assets	$ 118	$ 108
Deferred tax liabilities
Other liabilities	(680)	(653)
Deferred income taxes, net	$ (562)	$ (545)

Income Taxes (Details 4)

Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred income tax assets:
Allowance for credit losses	$ 124	$ 111
Tax carryforwards	39	44
Deferred tax assets, gross	163	155
Deferred income tax liabilities (primarily lease basis differences)	(508)	(508)
Valuation allowance for deferred income tax assets	(23)	(2)
Deferred income tax on translation adjustment	(194)	(190)
Deferred income taxes, net	$ (562)	$ (545)

Income Taxes (Details 5)

Income Taxes (Details 5) $ in Millions	Dec. 31, 2019USD ($)
Net operating loss (NOL) carryforwards
U.S. foreign tax credits available for carryforward	$ 6
U.S. state taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards	114
Gross deferred income tax asset associated with NOL carryforwards	9
NOL carryforwards, Valuation allowance	2
U.S. state taxing jurisdictions | Expiration Date 2020
Net operating loss (NOL) carryforwards
NOL carryforwards	0
U.S. state taxing jurisdictions | Expiration Date 2021
Net operating loss (NOL) carryforwards
NOL carryforwards	5
U.S. state taxing jurisdictions | Expiration Date 2022
Net operating loss (NOL) carryforwards
NOL carryforwards	5
U.S. state taxing jurisdictions | Expiration Date 2023
Net operating loss (NOL) carryforwards
NOL carryforwards	6
U.S. state taxing jurisdictions | Expiration Date 2024-2039
Net operating loss (NOL) carryforwards
NOL carryforwards	93
U.S. state taxing jurisdictions | Unlimited
Net operating loss (NOL) carryforwards
NOL carryforwards	5
Non-U.S. taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards	144
NOL carryforwards, Valuation allowance	21
Non-U.S. taxing jurisdictions | Expiration Date 2020
Net operating loss (NOL) carryforwards
NOL carryforwards	0
Non-U.S. taxing jurisdictions | Expiration Date 2021
Net operating loss (NOL) carryforwards
NOL carryforwards	9
Non-U.S. taxing jurisdictions | Expiration Date 2022
Net operating loss (NOL) carryforwards
NOL carryforwards	2
Non-U.S. taxing jurisdictions | Expiration Date 2023
Net operating loss (NOL) carryforwards
NOL carryforwards	6
Non-U.S. taxing jurisdictions | Expiration Date 2024-2034
Net operating loss (NOL) carryforwards
NOL carryforwards	6
Non-U.S. taxing jurisdictions | Unlimited
Net operating loss (NOL) carryforwards
NOL carryforwards	$ 121

Income Taxes (Details 6)

Income Taxes (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of unrecognized income tax benefits
Unrecognized tax benefits, beginning of year	$ 119	$ 0	$ 4
Additions for income tax positions related to current year	0	119	0
Reductions for income tax positions related to settlements	0	0	(4)
Unrecognized tax benefits, end of year	119	119	0
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	119	119	0
Recognized interest and penalties		(1)	$ 2
Maximum
Reconciliation of unrecognized income tax benefits
Recognized interest and penalties	1
Accrued interest and penalties	$ 1	$ 1

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Recurring basis | Level 2
Assets
Derivative financial instruments, net asset (liability) position	$ 34	$ 49

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Fair value of impaired loans	$ 343	$ 469

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financial Instruments, Financial Assets, Balance Sheet Groupings
Restricted cash and cash equivalents	$ 5	$ 7	$ 24
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(5,161)	(5,723)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	690	766
Restricted cash and cash equivalents	5	7
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings	(5,161)	(5,723)
Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest rate contracts, in a receivable position	5	4
Foreign exchange contracts, in a receivable position	7	15
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(25)	(40)
Foreign exchange contracts, in a payable position	(21)	(12)
Long-term debt	(23,655)	(22,684)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,133	20,510
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Guarantees	0	0
Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents	690	766
Restricted cash and cash equivalents	5	7
Finance receivables, net (excluding finance leases)	20,022	20,451
Interest rate contracts, in a receivable position	5	4
Foreign exchange contracts, in a receivable position	7	15
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position	(25)	(40)
Foreign exchange contracts, in a payable position	(21)	(12)
Short-term borrowings	(5,161)	(5,723)
Long-term debt	(23,334)	(22,815)
Guarantees	0	0
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases and failed sale leasebacks	7,810	7,470
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	72	93
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	(4)	(11)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position	72	93
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position	$ (4)	$ (11)

Transactions with Related Par_3

Transactions with Related Parties (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction
Dividend paid to Caterpillar									$ 25	$ 400	$ 725
Maximum borrowing capacity from Caterpillar, Variable lending agreements	$ 2,610								2,610
Maximum lending capacity to Caterpillar, Variable lending agreements	2,050								2,050
Payable to Caterpillar - borrowings	618				$ 1,518				618	1,518	1,638
Payable to Caterpillar - other	75				83				75	83	85
Notes receivable from Caterpillar	296				662				296	662	559
Other receivables from Caterpillar	494				480				494	480
Discounts earned on purchased receivables									455	375	253
Recorded Investment in Finance Receivables	28,256				28,434				28,256	28,434
Total revenues	725	$ 748	$ 757	$ 736	699	$ 735	$ 723	$ 690	2,966	2,847	2,689
Depreciation on equipment leased to others									813	819	810
Caterpillar
Related Party Transaction
Dividend paid to Caterpillar									25	400	725
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,610								2,610
Maximum lending capacity to Caterpillar, Variable lending agreements	2,050								2,050
Amount available, Committed credit facility extended to Caterpillar	2,000								2,000
Other receivables from Caterpillar	64				33				64	33	31
Interest expense, Caterpillar									32	35	21
Interest income on Notes Receivable with Caterpillar									26	30	74
Fees on committed credit facility extended to Caterpillar									5	40	40
Purchases of receivables from Caterpillar									42,817	42,961	34,667
Discounts earned on purchased receivables									455	375	253
Marketing program payments received									351	335	277
Total portfolio, which includes Finance receivables, net and Equipment on operating lease, net	139				56				139	56
Total revenues									16	9	4
Depreciation on equipment leased to others									11	5	3
Amount of our portfolio that is subject to guarantees by Caterpillar	562				450				562	450
Charges for employee medical plans and postretirement benefit plans administered by Caterpillar									35	34	31
Contributions to defined benefit plans									9	9	8
Stock based compensation expense									8	8	8
Operational and administrative support charges reimbursed to Caterpillar									46	35	30
Administrative support services to certain Caterpillar subsidiaries reimbursed by Caterpillar									13	11	9
Caterpillar Purchased Receivables
Related Party Transaction
Recorded Investment in Finance Receivables	$ 4,448				$ 4,691				$ 4,448	$ 4,691	$ 3,461

Segment and Geographic Inform_3

Segment and Geographic Information (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information
External Revenues	$ 725	$ 748	$ 757	$ 736	$ 699	$ 735	$ 723	$ 690	$ 2,966	$ 2,847	$ 2,689
Profit before income taxes	161	$ 184	$ 141	$ 142	46	$ 163	$ 100	$ 124	628	433	590
Interest Expense									787	757	667
Depreciation on equipment leased to others									813	819	810
Provision for credit losses									162	354	132
Assets	33,693				34,181				33,693	34,181	33,160
Capital expenditures									1,534	1,559	1,373
Operating Segments
Segment Reporting Information
External Revenues									2,937	2,789	2,630
Profit before income taxes									791	504	664
Interest Expense									755	740	645
Depreciation on equipment leased to others									813	818	808
Provision for credit losses									162	347	137
Assets	32,402				32,598				32,402	32,598	31,888
Capital expenditures									1,518	1,454	1,365
Unallocated
Segment Reporting Information
External Revenues									59	92	90
Profit before income taxes									(342)	(267)	(220)
Interest Expense									256	248	193
Depreciation on equipment leased to others									0	1	0
Provision for credit losses									0	0	0
Assets	1,896				1,957				1,896	1,957	1,719
Capital expenditures									16	104	8
Segment Reconciling Items | Timing
Segment Reporting Information
External Revenues									(30)	(34)	(31)
Profit before income taxes									(17)	(1)	(6)
Interest Expense									0	0	0
Depreciation on equipment leased to others									0	0	2
Provision for credit losses									0	7	(5)
Assets	16				55				16	55	53
Capital expenditures									0	1	0
Segment Reconciling Items | Methodology
Segment Reporting Information
External Revenues									0	0	0
Profit before income taxes									196	197	152
Interest Expense									(224)	(231)	(171)
Depreciation on equipment leased to others									0	0	0
Provision for credit losses									0	0	0
Assets	(216)				(159)				(216)	(159)	(256)
Capital expenditures									0	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues									0	0	0
Profit before income taxes									0	0	0
Interest Expense									0	0	0
Depreciation on equipment leased to others									0	0	0
Provision for credit losses									0	0	0
Assets	(405)				(270)				(405)	(270)	(244)
Capital expenditures									0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues									1,633	1,533	1,337
Profit before income taxes									493	434	353
Interest Expense									390	363	306
Depreciation on equipment leased to others									583	572	520
Provision for credit losses									19	42	36
Assets	15,540				15,632				15,540	15,632	14,790
Capital expenditures									1,106	1,108	992
EAME | Operating Segments
Segment Reporting Information
External Revenues									289	279	307
Profit before income taxes									75	14	116
Interest Expense									56	50	37
Depreciation on equipment leased to others									65	71	80
Provision for credit losses									4	58	4
Assets	4,991				4,862				4,991	4,862	4,332
Capital expenditures									92	108	103
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues									386	357	267
Profit before income taxes									181	168	99
Interest Expense									112	111	87
Depreciation on equipment leased to others									11	18	25
Provision for credit losses									15	(5)	(5)
Assets	4,801				4,639				4,801	4,639	4,214
Capital expenditures									11	14	6
Latin America | Operating Segments
Segment Reporting Information
External Revenues									251	254	292
Profit before income taxes									43	(3)	5
Interest Expense									98	101	121
Depreciation on equipment leased to others									24	27	38
Provision for credit losses									29	73	55
Assets	2,909				2,972				2,909	2,972	3,407
Capital expenditures									55	32	54
Caterpillar Power Finance | Operating Segments
Segment Reporting Information
External Revenues									101	110	155
Profit before income taxes									(41)	(143)	42
Interest Expense									42	55	44
Depreciation on equipment leased to others									3	2	3
Provision for credit losses									71	171	39
Assets	1,673				2,259				1,673	2,259	2,746
Capital expenditures									0	0	0
Mining | Operating Segments
Segment Reporting Information
External Revenues									277	256	272
Profit before income taxes									40	34	49
Interest Expense									57	60	50
Depreciation on equipment leased to others									127	128	142
Provision for credit losses									24	8	8
Assets	$ 2,488				$ 2,234				2,488	2,234	2,399
Capital expenditures									$ 254	$ 192	$ 210

Segment and Geographic Inform_4

Segment and Geographic Information (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets
External Revenues	$ 725	$ 748	$ 757	$ 736	$ 699	$ 735	$ 723	$ 690	$ 2,966	$ 2,847	$ 2,689
Equipment on operating leases, net and property and equipment, net (included in Other assets)	3,718				3,690				3,718	3,690
Inside U.S.
Revenues from External Customers and Long-Lived Assets
External Revenues									1,756	1,684	1,551
Equipment on operating leases, net and property and equipment, net (included in Other assets)	2,686				2,775				2,686	2,775
Inside Canada
Revenues from External Customers and Long-Lived Assets
Equipment on operating leases, net and property and equipment, net (included in Other assets)	479				402				479	402
All other
Revenues from External Customers and Long-Lived Assets
External Revenues									1,210	1,163	$ 1,138
Equipment on operating leases, net and property and equipment, net (included in Other assets)	$ 553				$ 513				$ 553	$ 513

Selected Quarterly Financial _3

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 725	$ 748	$ 757	$ 736	$ 699	$ 735	$ 723	$ 690	$ 2,966		$ 2,847		$ 2,689
Profit before income taxes	161	184	141	142	46	163	100	124	628		433		590
Profit	$ 104	$ 129	$ 79	$ 98	$ 18	$ 125	$ 71	$ 91	$ 410	[1]	$ 305	[1]	$ 586	[1]
[1]	Profit attributable to Caterpillar Financial Services Corporation.