Caterpillar Financial Services 10-Q 2 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-11241
Entity Registrant Name	CATERPILLAR FINANCIAL SERVICES CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1105865
Entity Address, Address Line One	2120 West End Ave.
Entity Address, City or Town	Nashville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37203-0001
City Area Code	615
Local Phone Number	341-1000
Title of 12(b) Security	Medium-Term Notes, Series H,3.300% Notes Due 2024
Trading Symbol	CAT/24
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1
Entity Central Index Key	0000764764
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Retail finance	$ 312	$ 297	$ 903	$ 903
Operating lease	222	229	671	711
Wholesale finance	117	77	300	237
Other, net	39	31	136	68
Total revenues	690	634	2,010	1,919
Expenses:
Interest	151	110	377	351
Depreciation on equipment leased to others	179	191	544	570
General, operating and administrative	136	127	397	382
Provision for credit losses	(16)	59	34	60
Other	7	9	20	24
Total expenses	457	496	1,372	1,387
Other income (expense)	(45)	(7)	(58)	(16)
Profit before income taxes	188	131	580	516
Provision for income taxes	55	27	157	124
Profit of consolidated companies	133	104	423	392
Less: Profit attributable to noncontrolling interests	2	3	6	9
Profit attributable to Caterpillar Financial Services Corporation	$ 131	$ 101	$ 417	$ 383

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 133	$ 104	$ 423	$ 392
Other comprehensive income (loss), net of tax (Note 5):
Foreign currency translation	(296)	(137)	(543)	(185)
Derivative financial instruments	(5)	9	18	21
Total Other comprehensive income (loss), net of tax	(301)	(128)	(525)	(164)
Comprehensive income (loss)	(168)	(24)	(102)	228
Less: Comprehensive income (loss) attributable to the noncontrolling interests	(6)	1	(9)	9
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ (162)	$ (25)	$ (93)	$ 219

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 761	$ 610
Finance receivables, net of Allowance for credit losses of $339 and $337	25,772	27,177
Notes receivable from Caterpillar	495	389
Equipment on operating leases, net	2,916	3,123
Other assets	1,539	1,088
Total assets	31,483	32,387
Liabilities and shareholder’s equity:
Payable to dealers and others	168	163
Payable to Caterpillar - borrowings and other	93	95
Accrued expenses	359	233
Short-term borrowings	4,199	5,395
Current maturities of long-term debt	6,694	6,307
Long-term debt	16,030	16,287
Other liabilities	1,061	926
Total liabilities	28,604	29,406
Commitments and contingent liabilities (Note 7)
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	3,214	2,797
Accumulated other comprehensive income (loss)	(1,284)	(774)
Noncontrolling interests	202	211
Total shareholder’s equity	2,879	2,981
Total liabilities and shareholder’s equity	$ 31,483	$ 32,387

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 339	$ 337
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, 2020	$ 3,491	$ 745	$ 2	$ 3,142	$ (595)	$ 197
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	392			383		9
Dividend paid to Caterpillar	(350)			(350)
Foreign currency translation, net of tax	(185)				(185)
Derivative financial instruments, net of tax	21				21
Balance at Sep. 30, 2021	3,369	745	2	3,175	(759)	206
Balance at Jun. 30, 2021	3,393	745	2	3,074	(633)	205
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	104			101		3
Foreign currency translation, net of tax	(137)				(135)	(2)
Derivative financial instruments, net of tax	9				9
Balance at Sep. 30, 2021	3,369	745	2	3,175	(759)	206
Balance at Dec. 31, 2021	2,981	745	2	2,797	(774)	211
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	423			417		6
Dividend paid to Caterpillar	0
Foreign currency translation, net of tax	(543)				(528)	(15)
Derivative financial instruments, net of tax	18				18
Balance at Sep. 30, 2022	2,879	745	2	3,214	(1,284)	202
Balance at Jun. 30, 2022	3,047	745	2	3,083	(991)	208
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	133			131		2
Foreign currency translation, net of tax	(296)				(288)	(8)
Derivative financial instruments, net of tax	(5)				(5)
Balance at Sep. 30, 2022	$ 2,879	$ 745	$ 2	$ 3,214	$ (1,284)	$ 202

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Profit of consolidated companies	$ 423	$ 392
Adjustments for non-cash items:
Depreciation and amortization	554	581
Accretion of Caterpillar purchased receivable revenue	(284)	(226)
Provision for credit losses	34	60
Other, net	116	74
Changes in assets and liabilities:
Other assets	41	57
Payable to dealers and others	62	27
Accrued expenses	17	(63)
Other payables with Caterpillar	(3)	9
Other liabilities	61	25
Net cash provided by operating activities	1,021	936
Cash flows from investing activities:
Expenditures for equipment on operating leases	(860)	(889)
Capital expenditures - excluding equipment on operating leases	(9)	(10)
Proceeds from disposals of equipment	607	767
Additions to finance receivables	(10,578)	(10,292)
Collections of finance receivables	10,333	9,949
Net changes in Caterpillar purchased receivables	678	100
Proceeds from sales of receivables	50	44
Net change in variable lending to Caterpillar	(3)	3
Additions to other notes receivable from Caterpillar	(139)	(75)
Collections of other notes receivable from Caterpillar	34	45
Settlements of undesignated derivatives	(69)	(68)
Other, net	0	1
Net cash provided by (used for) investing activities	44	(425)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	0	(1,000)
Proceeds from debt issued (original maturities greater than three months)	5,570	6,437
Payments on debt issued (original maturities greater than three months)	(5,269)	(6,710)
Short-term borrowings, net (original maturities three months or less)	(1,173)	1,334
Dividend paid to Caterpillar	0	(350)
Net cash provided by (used for) financing activities	(872)	(289)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(44)	4
Increase (decrease) in cash, cash equivalents and restricted cash	149	226
Cash, cash equivalents and restricted cash at beginning of year	614	425
Cash, cash equivalents and restricted cash at end of period	$ 763	$ 651

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Statement of Cash Flows [Abstract]
Restricted cash and cash equivalents	$ 2	$ 4

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated profit for the three and nine months ended September 30, 2022 and 2021, (b) the consolidated comprehensive income for the three and nine months ended September 30, 2022 and 2021, (c) the consolidated financial position at September 30, 2022 and December 31, 2021, (d) the consolidated changes in shareholder’s equity for the three and nine months ended September 30, 2022 and 2021 and (e) the consolidated cash flows for the nine months ended September 30, 2022 and 2021. The preparation of financial statements, in conformity with generally accepted accounting principles and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), 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. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2021 (2021 Form 10-K). The December 31, 2021 financial position data included herein was derived from the audited consolidated financial statements included in the 2021 Form 10-K but does not include all disclosures required by generally accepted accounting principles. We consolidate all variable interest entities (VIEs) where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. Please refer to Note 7 for more information. We have customers and dealers that are VIEs of which we are not the primary beneficiary. 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. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements A. Adoption of New Accounting Standards We consider the applicability and impact of all Accounting Standards Updates (ASUs). We adopted the following ASU effective January 1, 2022, which did not have a material impact on our financial statements: ASU Description 2021-05 Lessor – Variable lease payments B. Accounting Standards Issued But Not Yet Adopted Credit Losses (ASU 2022-02) – In March 2022, the Financial Accounting Standards Board issued accounting guidance related to Troubled Debt Restructurings (TDRs) by Creditors and Vintage Disclosures for Gross Write-offs. The guidance is effective for fiscal years beginning after December 15, 2022. We are evaluating the new guidance and 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	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Finance Receivables	Finance Receivables A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) September 30, December 31, Retail loans, net (1) $ 14,859 $ 14,817 Retail leases, net 6,805 7,818 Caterpillar purchased receivables, net 3,962 4,462 Wholesale loans, net (1) 478 406 Wholesale leases, net 7 11 Total finance receivables 26,111 27,514 Less: Allowance for credit losses (339) (337) Total finance receivables, net $ 25,772 $ 27,177 (1) Includes failed sale leasebacks. Finance leases Revenues from finance leases were $105 million and $120 million for the three months ended September 30, 2022 and 2021, respectively, and $326 million and $365 million for the nine months ended September 30, 2022 and 2021, respectively, and are included in retail and wholesale finance revenue in the Consolidated Statements of Profit. The residual values for finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position. Residual value adjustments are recognized through a reduction of finance revenue over the remaining lease term. Allowance for credit losses Portfolio segments A portfolio segment is the level at which we develop a systematic methodology for determining our allowance for credit losses. Our portfolio segments and related methods for estimating expected credit losses are as follows: Customer We provide loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use, the majority of which operate in construction-related industries. We also provide financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. The average original term of our customer finance receivable portfolio was approximately 50 months with an average remaining term of approximately 26 months as of September 30, 2022. We typically maintain a security interest in financed equipment and we require physical damage insurance coverage on the financed equipment, both of which provide us with certain rights and protections. If our collection efforts fail to bring a defaulted account current, we generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions. We estimate the allowance for credit losses related to our customer finance receivables based on loss forecast models utilizing probabilities of default and our estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors. During the three and nine months ended September 30, 2022, our forecasts for the markets in which we operate reflected a continuation of the trend of relatively low unemployment rates and delinquencies. However, high inflation rates and consequent central bank actions are weakening global economic growth. We believe the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends. Dealer We provide financing to Caterpillar dealers in the form of wholesale financing plans. Our wholesale financing plans provide assistance to dealers by financing their mostly new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis. In addition, we provide a variety of secured and unsecured loans to Caterpillar dealers. We estimate the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts. In general, our Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to our close working relationships with the dealers and their financial strength. Therefore, we made no adjustments to historical loss rates during the three and nine months ended September 30, 2022. Caterpillar Purchased Receivables We purchase receivables from Caterpillar, primarily related to the sale of equipment and parts to dealers. Caterpillar purchased receivables are non-interest-bearing short-term trade receivables that are purchased at a discount. We estimate the allowance for credit losses for Caterpillar purchased receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts. In general, our Caterpillar Purchased Receivables portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to the short-term maturities of the receivables, our close working relationships with the dealers and their financial strength. Therefore, we made no adjustments to historical loss rates during the three and nine months ended September 30, 2022. Classes of finance receivables 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. 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. An analysis of the allowance for credit losses was as follows: (Millions of dollars) Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Allowance for Credit Losses: Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 290 $ 82 $ 4 $ 376 $ 354 $ 44 $ 4 $ 402 Write-offs (30) — — (30) (91) — — (91) Recoveries 17 — — 17 15 — — 15 Provision for credit losses (1) (2) (17) — (19) 17 38 — 55 Other (5) — — (5) (3) — — (3) Ending Balance (2) $ 270 $ 65 $ 4 $ 339 $ 292 $ 82 $ 4 $ 378 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Allowance for Credit Losses: Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 251 $ 82 $ 4 $ 337 $ 431 $ 44 $ 4 $ 479 Write-offs (68) — — (68) (193) — — (193) Recoveries 47 — — 47 39 — — 39 Provision for credit losses (1) 46 (17) — 29 20 38 — 58 Other (6) — — (6) (5) — — (5) Ending Balance (2) $ 270 $ 65 $ 4 $ 339 $ 292 $ 82 $ 4 $ 378 Finance Receivables $ 19,927 $ 2,222 $ 3,962 $ 26,111 $ 20,702 $ 2,368 $ 3,703 $ 26,773 (1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables. (2) Ending balances as of September 30, 2022 include higher reserves for the Russia and Ukraine portfolios. 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 ratings, loan-to-value ratios, probabilities of default, industry trends, macroeconomic factors and other internal metrics. On an ongoing basis, we monitor credit quality based on past-due status 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 finance receivable past due when any installment is over 30 days past due. Customer The tables below summarize the aging category of our amortized cost of finance receivables in the Customer portfolio segment by origination year. (Millions of dollars) September 30, 2022 2022 2021 2020 2019 2018 Prior Revolving Total North America Current $ 3,151 $ 3,632 $ 1,765 $ 811 $ 289 $ 64 $ 233 $ 9,945 31-60 days past due 18 25 19 13 6 2 4 87 61-90 days past due 5 9 4 2 1 1 2 24 91+ days past due 5 16 13 8 5 5 5 57 EAME Current 873 1,014 511 309 179 81 — 2,967 31-60 days past due 6 12 5 4 — — — 27 61-90 days past due 2 4 5 1 1 — — 13 91+ days past due 3 21 11 5 2 1 — 43 Asia/Pacific Current 896 886 467 154 45 9 37 2,494 31-60 days past due 5 13 11 2 1 — — 32 61-90 days past due 1 6 6 2 — — — 15 91+ days past due 1 8 6 6 1 — — 22 Mining Current 579 698 247 226 118 112 79 2,059 31-60 days past due — — — — — — — — 61-90 days past due — — — — — 3 — 3 91+ days past due — — 1 — 3 1 — 5 Latin America Current 584 443 176 86 24 14 — 1,327 31-60 days past due 5 9 5 2 12 — — 33 61-90 days past due 4 4 2 1 — — — 11 91+ days past due — 14 14 5 4 17 — 54 Caterpillar Power Finance Current 44 94 151 94 30 170 118 701 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 8 — 8 Totals by Aging Category Current 6,127 6,767 3,317 1,680 685 450 467 19,493 31-60 days past due 34 59 40 21 19 2 4 179 61-90 days past due 12 23 17 6 2 4 2 66 91+ days past due 9 59 45 24 15 32 5 189 Total $ 6,182 $ 6,908 $ 3,419 $ 1,731 $ 721 $ 488 $ 478 $ 19,927 (Millions of dollars) December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total North America Current $ 4,792 $ 2,596 $ 1,426 $ 630 $ 182 $ 32 $ 182 $ 9,840 31-60 days past due 27 32 20 12 4 1 5 101 61-90 days past due 7 8 5 3 1 1 5 30 91+ days past due 9 17 12 13 5 4 5 65 EAME Current 1,499 836 577 352 140 26 — 3,430 31-60 days past due 5 4 3 1 1 — — 14 61-90 days past due 3 3 3 1 — — — 10 91+ days past due 3 11 2 2 — 2 — 20 Asia/Pacific Current 1,456 943 420 119 40 3 36 3,017 31-60 days past due 10 14 10 2 — — — 36 61-90 days past due 3 7 4 1 — — — 15 91+ days past due 2 10 10 3 — — — 25 Mining Current 944 356 332 194 36 161 36 2,059 31-60 days past due 6 — — — — — — 6 61-90 days past due 1 — — — 4 — — 5 91+ days past due — 1 8 9 3 1 — 22 Latin America Current 617 299 160 70 17 18 — 1,181 31-60 days past due 4 7 3 3 1 — — 18 61-90 days past due 3 3 1 1 — — — 8 91+ days past due 4 9 9 7 7 14 — 50 Caterpillar Power Finance Current 120 152 119 70 180 104 101 846 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 44 — 44 Totals by Aging Category Current 9,428 5,182 3,034 1,435 595 344 355 20,373 31-60 days past due 52 57 36 18 6 1 5 175 61-90 days past due 17 21 13 6 5 1 5 68 91+ days past due 18 48 41 34 15 65 5 226 Total $ 9,515 $ 5,308 $ 3,124 $ 1,493 $ 621 $ 411 $ 370 $ 20,842 Finance receivables in the Customer portfolio segment are substantially secured by collateral, primarily in the form of Caterpillar and other equipment. For those contracts where the borrower is experiencing financial difficulty, repayment of the outstanding amounts is generally expected to be provided through the operation or repossession and sale of the equipment. Dealer As of September 30, 2022 and December 31, 2021, our total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $62 million and $78 million, respectively, that was 91+ days past due in Latin America, all of which was originated in 2017. Caterpillar Purchased Receivables The tables below summarize the aging category of our amortized cost of finance receivables in the Caterpillar Purchased Receivables portfolio segment. (Millions of dollars) September 30, 2022 31-60 61-90 91+ Total Current Total Finance North America $ 11 $ 7 $ 6 $ 24 $ 2,208 $ 2,232 EAME 1 — 2 3 801 804 Asia/Pacific 8 — — 8 503 511 Mining — — — — — — Latin America 8 8 9 25 383 408 Caterpillar Power Finance — — 1 1 6 7 Total $ 28 $ 15 $ 18 $ 61 $ 3,901 $ 3,962 (Millions of dollars) December 31, 2021 31-60 61-90 91+ Total Current Total Finance North America $ 8 $ 6 $ 5 $ 19 $ 2,499 $ 2,518 EAME 1 — 1 2 844 846 Asia/Pacific — — 1 1 620 621 Mining — — — — — — Latin America 1 1 — 2 472 474 Caterpillar Power Finance — — — — 3 3 Total $ 10 $ 7 $ 7 $ 24 $ 4,438 $ 4,462 Non-accrual finance receivables 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. Contracts on non-accrual status are generally more than 120 days past due or have been restructured in a TDR. Recognition is resumed and previously suspended income is recognized when collection 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. In our Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows: (Millions of dollars) September 30, 2022 December 31, 2021 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 54 $ 5 $ 10 $ 47 $ 9 $ 12 EAME 42 — 4 18 1 2 Asia/Pacific 15 — 7 19 — 7 Mining 6 1 — 8 1 14 Latin America 57 — — 52 4 1 Caterpillar Power Finance 9 11 — 40 11 — Total $ 183 $ 17 $ 21 $ 184 $ 26 $ 36 There was $2 million and $1 million of interest income recognized during the three months ended September 30, 2022 and 2021, respectively, for customer finance receivables on non-accrual status. There was $11 million and $9 million of interest income recognized during the nine months ended September 30, 2022 and 2021, respectively, for customer finance receivables on non-accrual status. There were $62 million and $78 million in finance receivables in our Dealer portfolio segment on non-accrual status as of September 30, 2022 and December 31, 2021, respectively, all of which was in Latin America. There were no finance receivables in our Dealer portfolio segment more than 90 days past due and still accruing income as of September 30, 2022 and December 31, 2021 and no interest income was recognized on dealer finance receivables on non-accrual status during the three and nine months ended September 30, 2022 and 2021. Troubled debt restructurings A restructuring of a finance receivable constitutes a 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, payment deferrals and reduction of principal and/or accrued interest. We individually evaluate TDR contracts and establish an allowance based on the present value of expected future cash flows discounted at the receivable’s effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. There were no finance receivables modified as TDRs during the three and nine months ended September 30, 2022 and 2021 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Three Months Ended Three Months Ended Pre-TDR Post-TDR Pre-TDR Post-TDR North America $ 3 $ 3 $ 1 $ 1 EAME — — 1 1 Asia/Pacific — — 4 4 Mining 15 15 — — Latin America — — 4 4 Caterpillar Power Finance 11 11 7 3 Total $ 29 $ 29 $ 17 $ 13 Nine Months Ended Nine Months Ended Pre-TDR Post-TDR Pre-TDR Post-TDR North America $ 4 $ 4 $ 5 $ 5 EAME 1 1 1 1 Asia/Pacific — — 4 4 Mining 15 15 11 5 Latin America — — 10 10 Caterpillar Power Finance 20 19 23 19 Total $ 40 $ 39 $ 54 $ 44 The Post-TDR amortized cost of TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, was as follows: (Millions of dollars) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 North America $ — $ — $ — $ 1 Asia/Pacific — — — 6 Mining — — 5 — Latin America — — — 15 Caterpillar Power Finance — — — 5 Total $ — $ — $ 5 $ 27

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	9 Months Ended
	Sep. 30, 2022
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 prudently 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. We present at least annually to our Board of Directors and the Audit Committee of the Caterpillar Inc. Board of Directors on our risk management practices, including our use of financial derivative instruments. 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. We record in current earnings 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. We record in Accumulated other comprehensive income (loss) (AOCI) changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, on the Consolidated Statements of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings. We report changes in the fair value of undesignated derivative instruments in current earnings. We classify cash flows from designated derivative financial instruments within the same category as the item being hedged on the Consolidated Statements of Cash Flows. We include cash flows from undesignated derivative financial instruments 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 the 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. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts. We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the original term of the previously designated hedged item. The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) September 30, 2022 December 31, 2021 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 605 $ (4) $ 142 $ (32) Interest rate contracts 94 (119) 38 (15) $ 699 $ (123) $ 180 $ (47) Undesignated derivatives Foreign exchange contracts $ 100 $ (49) $ 28 $ (36) $ 100 $ (49) $ 28 $ (36) (1) Assets are classified on the Consolidated Statements of Financial Position as Other assets. (2) Liabilities are classified on the Consolidated Statements of Financial Position as Accrued expenses. The total notional amount of our derivative instruments was $14.02 billion and $13.85 billion as of September 30, 2022 and December 31, 2021, respectively. The notional amounts of derivative financial instruments do not represent amounts exchanged by the parties. We calculate the amounts exchanged by the parties by referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates and interest rates. Gains (Losses) on derivative instruments are categorized as follows: (Millions of dollars) Fair Value / Cash Flow Hedges Gains (Losses) Recognized 1 Gains (Losses) Gains (Losses) Reclassified from AOCI 2 Three Months Ended September 30, 2022 2021 2022 2021 2022 2021 Foreign exchange contracts $ 16 $ 44 $ 276 $ 89 $ 303 $ 84 Interest rate contracts (5) 5 26 3 8 (5) $ 11 $ 49 $ 302 $ 92 $ 311 $ 79 Nine Months Ended September 30, 2022 2021 2022 2021 2022 2021 Foreign exchange contracts $ (26) $ 72 $ 570 $ 170 $ 656 $ 166 Interest rate contracts 4 18 103 4 — (21) $ (22) $ 90 $ 673 $ 174 $ 656 $ 145 (1) Foreign exchange contract gains (losses) are primarily from undesignated forward contracts and are included in Other income (expense). Interest rate contract gains (losses) are from designated fair value hedges and are included in Interest expense. (2) Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense. The following amounts were recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges: (Millions of dollars) Carrying Value of Cumulative Amount of Fair Value September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Current maturities of long-term debt $ — $ 755 $ — $ 5 Long-term debt 1,980 1,304 (119) (2) Total $ 1,980 $ 2,059 $ (119) $ 3 As of September 30, 2022, $32 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statements of Financial Position), related to our cash flow hedges, are expected to be reclassified to earnings over the next twelve months. The actual amount recorded in earnings will vary based on interest rates and exchange rates at the time the hedged transactions impact earnings. We enter into International Swaps and Derivatives Association 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 may 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 typically not required of the counterparties or us under the master netting agreements. As of September 30, 2022 and December 31, 2021, no cash collateral was received or pledged under the master netting agreements. The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: (Millions of dollars) September 30, 2022 December 31, 2021 Assets Liabilities Assets Liabilities Gross amounts recognized $ 799 $ (172) $ 208 $ (83) Financial instruments not offset (169) 169 (67) 67 Net amount $ 630 $ (3) $ 141 $ (16)

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) We present Comprehensive income (loss) and its components in the Consolidated Statements of Comprehensive Income. Changes in Accumulated other comprehensive income (loss) included in the Consolidated Statements of Changes in Shareholder’s Equity consisted of the following: (Millions of dollars) Three Months Ended Nine Months Ended 2022 2021 2022 2021 Foreign currency translation Balance at beginning of period $ (1,002) $ (601) $ (762) $ (551) Gains (losses) on foreign currency translation (258) (122) (456) (154) Less: Tax provision/(benefit) 30 13 72 31 Net gains (losses) on foreign currency translation (288) (135) (528) (185) Other comprehensive income (loss), net of tax (288) (135) (528) (185) Balance at end of period $ (1,290) $ (736) $ (1,290) $ (736) Derivative financial instruments Balance at beginning of period $ 11 $ (32) $ (12) $ (44) Gains (losses) deferred 302 92 673 174 Less: Tax provision/(benefit) 95 14 158 30 Net gains (losses) deferred 207 78 515 144 (Gains) losses reclassified to earnings (311) (79) (656) (145) Less: Tax (provision)/benefit (99) (10) (159) (22) Net (gains) losses reclassified to earnings (212) (69) (497) (123) Other comprehensive income (loss), net of tax (5) 9 18 21 Balance at end of period $ 6 $ (23) $ 6 $ (23) Total Accumulated other comprehensive income (loss) at end of period $ (1,284) $ (759) $ (1,284) $ (759)

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information A. Basis for Segment Information We report information internally for operating segments based on management responsibility. Our operating segments provide financing alternatives to customers and dealers around the world for Caterpillar products and services and vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing products include operating and finance leases, retail loans, working capital loans to Caterpillar dealers and wholesale financing plans within each of the operating segments. Certain operating segments also purchase short-term trade receivables from Caterpillar. 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. • Mining - Provides financing for large mining customers worldwide. • 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. C. Segment Measurement and Reconciliations Cash, debt and other expenses are allocated to our segments based on their respective portfolios. The related Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt. The performance of each segment is assessed based on a consistent leverage ratio. The Provision for credit losses is based on each segment’s respective finance receivable portfolio. Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures. Reconciling items are created based on accounting differences between segment reporting and consolidated external reporting. For the reconciliation of Profit before income taxes, we have grouped the reconciling items as follows: • Unallocated - This item is related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the special purpose corporation (see Note 7 for additional information) and other miscellaneous items. • Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting. • Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows: ◦ Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities. ◦ The impact of differences between the actual leverage and the segment leverage ratios. ◦ Interest expense includes realized forward points on foreign currency forward contracts. ◦ The net gain or loss from interest rate derivatives is excluded from segment reporting. Supplemental segment data and reconciliations to consolidated external reporting for the three months ended September 30 was as follows: (Millions of dollars) 2022 External Profit Interest Depreciation Provision Assets at Capital North America $ 383 $ 150 $ 69 $ 126 $ (5) $ 15,014 $ 205 EAME 72 — 27 13 7 4,724 45 Asia/Pacific 70 33 19 1 1 3,705 3 Latin America 75 31 37 3 (8) 2,539 3 Mining 72 21 11 35 (4) 2,553 36 Caterpillar Power Finance 11 12 5 1 (7) 738 — Total Segments 683 247 168 179 (16) 29,273 292 Unallocated 10 (80) 53 — — 1,762 2 Timing (3) — — — — 18 — Methodology — 21 (70) — — 582 — Inter-segment Eliminations (1) — — — — — (152) — Total $ 690 $ 188 $ 151 $ 179 $ (16) $ 31,483 $ 294 2021 External Profit Interest Depreciation Provision Assets at Capital North America $ 349 $ 94 $ 62 $ 138 $ 10 $ 15,755 $ 236 EAME 69 26 6 15 — 5,192 40 Asia/Pacific 78 33 18 1 7 4,117 4 Latin America 52 (19) 19 2 40 2,405 1 Mining 73 22 8 34 2 2,672 28 Caterpillar Power Finance 13 4 3 1 — 957 — Total Segments 634 160 116 191 59 31,098 309 Unallocated 3 (71) 43 — — 1,458 2 Timing (3) 2 — — — 15 — Methodology — 40 (49) — — 18 — Inter-segment Eliminations (1) — — — — — (202) — Total $ 634 $ 131 $ 110 $ 191 $ 59 $ 32,387 $ 311 (1) Elimination is primarily related to intercompany loans Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows: (Millions of dollars) 2022 External Profit Interest Depreciation Provision Assets at Capital North America $ 1,112 $ 411 $ 181 $ 381 $ 11 $ 15,014 $ 652 EAME 207 5 45 41 49 4,724 101 Asia/Pacific 216 104 55 4 5 3,705 6 Latin America 204 65 98 7 (3) 2,539 21 Mining 218 66 29 109 (14) 2,553 83 Caterpillar Power Finance 41 35 10 2 (14) 738 — Total Segments 1,998 686 418 544 34 29,273 863 Unallocated 21 (222) 138 — — 1,762 6 Timing (9) 3 — — — 18 — Methodology — 113 (179) — — 582 — Inter-segment Eliminations (1) — — — — — (152) — Total $ 2,010 $ 580 $ 377 $ 544 $ 34 $ 31,483 $ 869 2021 External Profit Interest Depreciation Provision Assets at Capital North America $ 1,044 $ 295 $ 195 $ 409 $ 14 $ 15,755 $ 680 EAME 204 50 16 45 28 5,192 67 Asia/Pacific 263 133 66 5 7 4,117 9 Latin America 149 15 48 6 47 2,405 9 Mining 215 79 28 103 (17) 2,672 128 Caterpillar Power Finance 40 34 10 2 (19) 957 — Total Segments 1,915 606 363 570 60 31,098 893 Unallocated 12 (218) 138 — — 1,458 6 Timing (8) 5 — — — 15 — Methodology — 123 (150) — — 18 — Inter-segment Eliminations (1) — — — — — (202) — Total $ 1,919 $ 516 $ 351 $ 570 $ 60 $ 32,387 $ 899 (1) Elimination is primarily related to intercompany loans.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	Commitments and Contingent Liabilities Guarantees We provide credit guarantees and residual value guarantees to third parties for financing and leasing associated with Caterpillar machinery. In addition, we provide standby letters of credit issued to third parties on behalf of our customers. These guarantees and standby letters of credit have varying terms and beneficiaries and are generally secured by customer assets. No significant loss has been experienced or is anticipated under any of these guarantees. At September 30, 2022 and December 31, 2021, 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 $25 million and $36 million at September 30, 2022 and December 31, 2021, respectively. We provide guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a VIE. 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 receive a fee for providing this guarantee. We are the primary beneficiary of the SPC as our guarantees result in us having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses and therefore we have consolidated the financial statements of the SPC. As of September 30, 2022 and December 31, 2021, the SPC’s assets of $1.09 billion and $888 million, 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 $1.09 billion and $888 million, 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. 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.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsFair 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. We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation. We may therefore classify a measurement 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, the nonperformance risk is included in the market price. For certain other financial assets and liabilities, our fair value calculations have been adjusted accordingly. Derivative financial instruments The fair value of interest rate contracts is primarily based on a standard industry accepted valuation model that utilizes 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 included in our Consolidated Statements of Financial Position in a net asset position of $627 million and $125 million as of September 30, 2022 and December 31, 2021, respectively. See Note 4 for additional information. Loans measured at fair value Certain loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated. 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 loans carried at fair value of $90 million and $100 million as of September 30, 2022 and December 31, 2021, respectively. Cash and cash equivalents, Restricted cash and cash equivalents (included in Other Assets in the Consolidated Statements of Financial Position) and Short-term borrowings are classified as Level 1 measurements and carrying amount approximates fair value. We use the following methods and assumptions to estimate the fair value of our financial instruments not carried at fair value: Finance receivables, net – we estimate fair value by discounting the future cash flows using current rates representative of receivables with similar remaining maturities. Long-term debt – we estimate fair value for fixed and floating-rate debt based on quoted market prices. Fair values of our financial instruments not carried at fair value were as follows: (Millions of dollars) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Fair Reference Assets Finance receivables, net (excluding finance leases (1) ) $ 18,657 $ 18,038 $ 19,068 $ 19,047 3 Note 3 Liabilities Long-term debt $ 22,724 $ 21,886 $ 22,594 $ 22,797 2 (1) Represents finance leases and failed sale leasebacks of $7.12 billion and $8.11 billion as of September 30, 2022 and December 31, 2021, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes

Finance Receivables (Tables)

Finance Receivables (Tables)	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Summary of finance receivables included in the Consolidated Statements of Financial Position	A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) September 30, December 31, Retail loans, net (1) $ 14,859 $ 14,817 Retail leases, net 6,805 7,818 Caterpillar purchased receivables, net 3,962 4,462 Wholesale loans, net (1) 478 406 Wholesale leases, net 7 11 Total finance receivables 26,111 27,514 Less: Allowance for credit losses (339) (337) Total finance receivables, net $ 25,772 $ 27,177 (1) Includes failed sale leasebacks.
Allowance for credit losses and total finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Allowance for Credit Losses: Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 290 $ 82 $ 4 $ 376 $ 354 $ 44 $ 4 $ 402 Write-offs (30) — — (30) (91) — — (91) Recoveries 17 — — 17 15 — — 15 Provision for credit losses (1) (2) (17) — (19) 17 38 — 55 Other (5) — — (5) (3) — — (3) Ending Balance (2) $ 270 $ 65 $ 4 $ 339 $ 292 $ 82 $ 4 $ 378 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Allowance for Credit Losses: Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 251 $ 82 $ 4 $ 337 $ 431 $ 44 $ 4 $ 479 Write-offs (68) — — (68) (193) — — (193) Recoveries 47 — — 47 39 — — 39 Provision for credit losses (1) 46 (17) — 29 20 38 — 58 Other (6) — — (6) (5) — — (5) Ending Balance (2) $ 270 $ 65 $ 4 $ 339 $ 292 $ 82 $ 4 $ 378 Finance Receivables $ 19,927 $ 2,222 $ 3,962 $ 26,111 $ 20,702 $ 2,368 $ 3,703 $ 26,773 (1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables. (2) Ending balances as of September 30, 2022 include higher reserves for the Russia and Ukraine portfolios.
Amortized cost of finance receivables in the Customer portfolio segment by origination year	The tables below summarize the aging category of our amortized cost of finance receivables in the Customer portfolio segment by origination year. (Millions of dollars) September 30, 2022 2022 2021 2020 2019 2018 Prior Revolving Total North America Current $ 3,151 $ 3,632 $ 1,765 $ 811 $ 289 $ 64 $ 233 $ 9,945 31-60 days past due 18 25 19 13 6 2 4 87 61-90 days past due 5 9 4 2 1 1 2 24 91+ days past due 5 16 13 8 5 5 5 57 EAME Current 873 1,014 511 309 179 81 — 2,967 31-60 days past due 6 12 5 4 — — — 27 61-90 days past due 2 4 5 1 1 — — 13 91+ days past due 3 21 11 5 2 1 — 43 Asia/Pacific Current 896 886 467 154 45 9 37 2,494 31-60 days past due 5 13 11 2 1 — — 32 61-90 days past due 1 6 6 2 — — — 15 91+ days past due 1 8 6 6 1 — — 22 Mining Current 579 698 247 226 118 112 79 2,059 31-60 days past due — — — — — — — — 61-90 days past due — — — — — 3 — 3 91+ days past due — — 1 — 3 1 — 5 Latin America Current 584 443 176 86 24 14 — 1,327 31-60 days past due 5 9 5 2 12 — — 33 61-90 days past due 4 4 2 1 — — — 11 91+ days past due — 14 14 5 4 17 — 54 Caterpillar Power Finance Current 44 94 151 94 30 170 118 701 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 8 — 8 Totals by Aging Category Current 6,127 6,767 3,317 1,680 685 450 467 19,493 31-60 days past due 34 59 40 21 19 2 4 179 61-90 days past due 12 23 17 6 2 4 2 66 91+ days past due 9 59 45 24 15 32 5 189 Total $ 6,182 $ 6,908 $ 3,419 $ 1,731 $ 721 $ 488 $ 478 $ 19,927 (Millions of dollars) December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total North America Current $ 4,792 $ 2,596 $ 1,426 $ 630 $ 182 $ 32 $ 182 $ 9,840 31-60 days past due 27 32 20 12 4 1 5 101 61-90 days past due 7 8 5 3 1 1 5 30 91+ days past due 9 17 12 13 5 4 5 65 EAME Current 1,499 836 577 352 140 26 — 3,430 31-60 days past due 5 4 3 1 1 — — 14 61-90 days past due 3 3 3 1 — — — 10 91+ days past due 3 11 2 2 — 2 — 20 Asia/Pacific Current 1,456 943 420 119 40 3 36 3,017 31-60 days past due 10 14 10 2 — — — 36 61-90 days past due 3 7 4 1 — — — 15 91+ days past due 2 10 10 3 — — — 25 Mining Current 944 356 332 194 36 161 36 2,059 31-60 days past due 6 — — — — — — 6 61-90 days past due 1 — — — 4 — — 5 91+ days past due — 1 8 9 3 1 — 22 Latin America Current 617 299 160 70 17 18 — 1,181 31-60 days past due 4 7 3 3 1 — — 18 61-90 days past due 3 3 1 1 — — — 8 91+ days past due 4 9 9 7 7 14 — 50 Caterpillar Power Finance Current 120 152 119 70 180 104 101 846 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 44 — 44 Totals by Aging Category Current 9,428 5,182 3,034 1,435 595 344 355 20,373 31-60 days past due 52 57 36 18 6 1 5 175 61-90 days past due 17 21 13 6 5 1 5 68 91+ days past due 18 48 41 34 15 65 5 226 Total $ 9,515 $ 5,308 $ 3,124 $ 1,493 $ 621 $ 411 $ 370 $ 20,842
Aging related to finance receivables	The tables below summarize the aging category of our amortized cost of finance receivables in the Caterpillar Purchased Receivables portfolio segment. (Millions of dollars) September 30, 2022 31-60 61-90 91+ Total Current Total Finance North America $ 11 $ 7 $ 6 $ 24 $ 2,208 $ 2,232 EAME 1 — 2 3 801 804 Asia/Pacific 8 — — 8 503 511 Mining — — — — — — Latin America 8 8 9 25 383 408 Caterpillar Power Finance — — 1 1 6 7 Total $ 28 $ 15 $ 18 $ 61 $ 3,901 $ 3,962 (Millions of dollars) December 31, 2021 31-60 61-90 91+ Total Current Total Finance North America $ 8 $ 6 $ 5 $ 19 $ 2,499 $ 2,518 EAME 1 — 1 2 844 846 Asia/Pacific — — 1 1 620 621 Mining — — — — — — Latin America 1 1 — 2 472 474 Caterpillar Power Finance — — — — 3 3 Total $ 10 $ 7 $ 7 $ 24 $ 4,438 $ 4,462
Finance receivables on non-accrual status	In our Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows: (Millions of dollars) September 30, 2022 December 31, 2021 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 54 $ 5 $ 10 $ 47 $ 9 $ 12 EAME 42 — 4 18 1 2 Asia/Pacific 15 — 7 19 — 7 Mining 6 1 — 8 1 14 Latin America 57 — — 52 4 1 Caterpillar Power Finance 9 11 — 40 11 — Total $ 183 $ 17 $ 21 $ 184 $ 26 $ 36 There was $2 million and $1 million of interest income recognized during the three months ended September 30, 2022 and 2021, respectively, for customer finance receivables on non-accrual status. There was $11 million and $9 million of interest income recognized during the nine months ended September 30, 2022 and 2021, respectively, for customer finance receivables on non-accrual status.
Finance receivables modified as TDRs	Finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Three Months Ended Three Months Ended Pre-TDR Post-TDR Pre-TDR Post-TDR North America $ 3 $ 3 $ 1 $ 1 EAME — — 1 1 Asia/Pacific — — 4 4 Mining 15 15 — — Latin America — — 4 4 Caterpillar Power Finance 11 11 7 3 Total $ 29 $ 29 $ 17 $ 13 Nine Months Ended Nine Months Ended Pre-TDR Post-TDR Pre-TDR Post-TDR North America $ 4 $ 4 $ 5 $ 5 EAME 1 1 1 1 Asia/Pacific — — 4 4 Mining 15 15 11 5 Latin America — — 10 10 Caterpillar Power Finance 20 19 23 19 Total $ 40 $ 39 $ 54 $ 44 The Post-TDR amortized cost of TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, was as follows: (Millions of dollars) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 North America $ — $ — $ — $ 1 Asia/Pacific — — — 6 Mining — — 5 — Latin America — — — 15 Caterpillar Power Finance — — — 5 Total $ — $ — $ 5 $ 27

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)	9 Months Ended
	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position	The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) September 30, 2022 December 31, 2021 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 605 $ (4) $ 142 $ (32) Interest rate contracts 94 (119) 38 (15) $ 699 $ (123) $ 180 $ (47) Undesignated derivatives Foreign exchange contracts $ 100 $ (49) $ 28 $ (36) $ 100 $ (49) $ 28 $ (36) (1) Assets are classified on the Consolidated Statements of Financial Position as Other assets. (2) Liabilities are classified on the Consolidated Statements of Financial Position as Accrued expenses.
Schedule of Gains (Losses) on derivatives instruments	Gains (Losses) on derivative instruments are categorized as follows: (Millions of dollars) Fair Value / Cash Flow Hedges Gains (Losses) Recognized 1 Gains (Losses) Gains (Losses) Reclassified from AOCI 2 Three Months Ended September 30, 2022 2021 2022 2021 2022 2021 Foreign exchange contracts $ 16 $ 44 $ 276 $ 89 $ 303 $ 84 Interest rate contracts (5) 5 26 3 8 (5) $ 11 $ 49 $ 302 $ 92 $ 311 $ 79 Nine Months Ended September 30, 2022 2021 2022 2021 2022 2021 Foreign exchange contracts $ (26) $ 72 $ 570 $ 170 $ 656 $ 166 Interest rate contracts 4 18 103 4 — (21) $ (22) $ 90 $ 673 $ 174 $ 656 $ 145 (1) Foreign exchange contract gains (losses) are primarily from undesignated forward contracts and are included in Other income (expense). Interest rate contract gains (losses) are from designated fair value hedges and are included in Interest expense. (2) Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense.
Schedule of amounts recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges	The following amounts were recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges: (Millions of dollars) Carrying Value of Cumulative Amount of Fair Value September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Current maturities of long-term debt $ — $ 755 $ — $ 5 Long-term debt 1,980 1,304 (119) (2) Total $ 1,980 $ 2,059 $ (119) $ 3
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 was as follows: (Millions of dollars) September 30, 2022 December 31, 2021 Assets Liabilities Assets Liabilities Gross amounts recognized $ 799 $ (172) $ 208 $ (83) Financial instruments not offset (169) 169 (67) 67 Net amount $ 630 $ (3) $ 141 $ (16)

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated other comprehensive income (loss)	Changes in Accumulated other comprehensive income (loss) included in the Consolidated Statements of Changes in Shareholder’s Equity consisted of the following: (Millions of dollars) Three Months Ended Nine Months Ended 2022 2021 2022 2021 Foreign currency translation Balance at beginning of period $ (1,002) $ (601) $ (762) $ (551) Gains (losses) on foreign currency translation (258) (122) (456) (154) Less: Tax provision/(benefit) 30 13 72 31 Net gains (losses) on foreign currency translation (288) (135) (528) (185) Other comprehensive income (loss), net of tax (288) (135) (528) (185) Balance at end of period $ (1,290) $ (736) $ (1,290) $ (736) Derivative financial instruments Balance at beginning of period $ 11 $ (32) $ (12) $ (44) Gains (losses) deferred 302 92 673 174 Less: Tax provision/(benefit) 95 14 158 30 Net gains (losses) deferred 207 78 515 144 (Gains) losses reclassified to earnings (311) (79) (656) (145) Less: Tax (provision)/benefit (99) (10) (159) (22) Net (gains) losses reclassified to earnings (212) (69) (497) (123) Other comprehensive income (loss), net of tax (5) 9 18 21 Balance at end of period $ 6 $ (23) $ 6 $ (23) Total Accumulated other comprehensive income (loss) at end of period $ (1,284) $ (759) $ (1,284) $ (759)

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the three months ended September 30 was as follows: (Millions of dollars) 2022 External Profit Interest Depreciation Provision Assets at Capital North America $ 383 $ 150 $ 69 $ 126 $ (5) $ 15,014 $ 205 EAME 72 — 27 13 7 4,724 45 Asia/Pacific 70 33 19 1 1 3,705 3 Latin America 75 31 37 3 (8) 2,539 3 Mining 72 21 11 35 (4) 2,553 36 Caterpillar Power Finance 11 12 5 1 (7) 738 — Total Segments 683 247 168 179 (16) 29,273 292 Unallocated 10 (80) 53 — — 1,762 2 Timing (3) — — — — 18 — Methodology — 21 (70) — — 582 — Inter-segment Eliminations (1) — — — — — (152) — Total $ 690 $ 188 $ 151 $ 179 $ (16) $ 31,483 $ 294 2021 External Profit Interest Depreciation Provision Assets at Capital North America $ 349 $ 94 $ 62 $ 138 $ 10 $ 15,755 $ 236 EAME 69 26 6 15 — 5,192 40 Asia/Pacific 78 33 18 1 7 4,117 4 Latin America 52 (19) 19 2 40 2,405 1 Mining 73 22 8 34 2 2,672 28 Caterpillar Power Finance 13 4 3 1 — 957 — Total Segments 634 160 116 191 59 31,098 309 Unallocated 3 (71) 43 — — 1,458 2 Timing (3) 2 — — — 15 — Methodology — 40 (49) — — 18 — Inter-segment Eliminations (1) — — — — — (202) — Total $ 634 $ 131 $ 110 $ 191 $ 59 $ 32,387 $ 311 (1) Elimination is primarily related to intercompany loans Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows: (Millions of dollars) 2022 External Profit Interest Depreciation Provision Assets at Capital North America $ 1,112 $ 411 $ 181 $ 381 $ 11 $ 15,014 $ 652 EAME 207 5 45 41 49 4,724 101 Asia/Pacific 216 104 55 4 5 3,705 6 Latin America 204 65 98 7 (3) 2,539 21 Mining 218 66 29 109 (14) 2,553 83 Caterpillar Power Finance 41 35 10 2 (14) 738 — Total Segments 1,998 686 418 544 34 29,273 863 Unallocated 21 (222) 138 — — 1,762 6 Timing (9) 3 — — — 18 — Methodology — 113 (179) — — 582 — Inter-segment Eliminations (1) — — — — — (152) — Total $ 2,010 $ 580 $ 377 $ 544 $ 34 $ 31,483 $ 869 2021 External Profit Interest Depreciation Provision Assets at Capital North America $ 1,044 $ 295 $ 195 $ 409 $ 14 $ 15,755 $ 680 EAME 204 50 16 45 28 5,192 67 Asia/Pacific 263 133 66 5 7 4,117 9 Latin America 149 15 48 6 47 2,405 9 Mining 215 79 28 103 (17) 2,672 128 Caterpillar Power Finance 40 34 10 2 (19) 957 — Total Segments 1,915 606 363 570 60 31,098 893 Unallocated 12 (218) 138 — — 1,458 6 Timing (8) 5 — — — 15 — Methodology — 123 (150) — — 18 — Inter-segment Eliminations (1) — — — — — (202) — Total $ 1,919 $ 516 $ 351 $ 570 $ 60 $ 32,387 $ 899 (1) Elimination is primarily related to intercompany loans.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair values of financial instruments	Fair values of our financial instruments not carried at fair value were as follows: (Millions of dollars) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Fair Reference Assets Finance receivables, net (excluding finance leases (1) ) $ 18,657 $ 18,038 $ 19,068 $ 19,047 3 Note 3 Liabilities Long-term debt $ 22,724 $ 21,886 $ 22,594 $ 22,797 2 (1) Represents finance leases and failed sale leasebacks of $7.12 billion and $8.11 billion as of September 30, 2022 and December 31, 2021, respectively.

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	$ 26,111		$ 27,514	$ 26,773
Less: Allowance for credit losses	(339)	$ (376)	(337)	$ (378)	$ (402)	$ (479)
Financing Receivable, after Allowance for Credit Loss, Total	25,772		27,177
Retail loans
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	14,859		14,817
Retail leases
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	6,805		7,818
Caterpillar Purchased Receivables
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	3,962		4,462
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	478		406
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	$ 7		$ 11

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Receivables [Abstract]
Finance lease revenue (included in retail and wholesale finance revenue)	$ 105	$ 120	$ 326	$ 365

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Losses
Beginning Balance	$ 376	$ 402	$ 337	$ 479
Write-offs	(30)	(91)	(68)	(193)
Recoveries	17	15	47	39
Financing Receivable, Credit Loss, Expense (Reversal)	(19)	55	29	58
Financing Receivable, Allowance for Credit Losses, Other	(5)	(3)	(6)	(5)
Ending Balance(2)	339	378	339	378
Customer
Financing Receivable, Allowance for Credit Losses
Beginning Balance	290	354	251	431
Write-offs	(30)	(91)	(68)	(193)
Recoveries	17	15	47	39
Financing Receivable, Credit Loss, Expense (Reversal)	(2)	17	46	20
Financing Receivable, Allowance for Credit Losses, Other	(5)	(3)	(6)	(5)
Ending Balance(2)	270	292	270	292
Dealer
Financing Receivable, Allowance for Credit Losses
Beginning Balance	82	44	82	44
Write-offs	0	0	0	0
Recoveries	0	0	0	0
Financing Receivable, Credit Loss, Expense (Reversal)	(17)	38	(17)	38
Financing Receivable, Allowance for Credit Losses, Other	0	0	0	0
Ending Balance(2)	65	82	65	82
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Beginning Balance	4	4	4	4
Write-offs	0	0	0	0
Recoveries	0	0	0	0
Financing Receivable, Credit Loss, Expense (Reversal)	0	0	0	0
Financing Receivable, Allowance for Credit Losses, Other	0	0	0	0
Ending Balance(2)	$ 4	$ 4	$ 4	$ 4

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	$ 26,111	$ 27,514	$ 26,773
Customer
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	6,182	9,515
2021 and 2020, respectively	6,908	5,308
2020 and 2019, respectively	3,419	3,124
2019 and 2018, respectively	1,731	1,493
2018 and 2017, respectively	721	621
Prior	488	411
Revolving Finance Receivables	478	370
Total Finance Receivables	19,927	20,842	20,702
Customer | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	6,127	9,428
2021 and 2020, respectively	6,767	5,182
2020 and 2019, respectively	3,317	3,034
2019 and 2018, respectively	1,680	1,435
2018 and 2017, respectively	685	595
Prior	450	344
Revolving Finance Receivables	467	355
Total Finance Receivables	19,493	20,373
Customer | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	34	52
2021 and 2020, respectively	59	57
2020 and 2019, respectively	40	36
2019 and 2018, respectively	21	18
2018 and 2017, respectively	19	6
Prior	2	1
Revolving Finance Receivables	4	5
Total Finance Receivables	179	175
Customer | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	12	17
2021 and 2020, respectively	23	21
2020 and 2019, respectively	17	13
2019 and 2018, respectively	6	6
2018 and 2017, respectively	2	5
Prior	4	1
Revolving Finance Receivables	2	5
Total Finance Receivables	66	68
Customer | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	9	18
2021 and 2020, respectively	59	48
2020 and 2019, respectively	45	41
2019 and 2018, respectively	24	34
2018 and 2017, respectively	15	15
Prior	32	65
Revolving Finance Receivables	5	5
Total Finance Receivables	189	226
Customer | North America | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	3,151	4,792
2021 and 2020, respectively	3,632	2,596
2020 and 2019, respectively	1,765	1,426
2019 and 2018, respectively	811	630
2018 and 2017, respectively	289	182
Prior	64	32
Revolving Finance Receivables	233	182
Total Finance Receivables	9,945	9,840
Customer | North America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	18	27
2021 and 2020, respectively	25	32
2020 and 2019, respectively	19	20
2019 and 2018, respectively	13	12
2018 and 2017, respectively	6	4
Prior	2	1
Revolving Finance Receivables	4	5
Total Finance Receivables	87	101
Customer | North America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	5	7
2021 and 2020, respectively	9	8
2020 and 2019, respectively	4	5
2019 and 2018, respectively	2	3
2018 and 2017, respectively	1	1
Prior	1	1
Revolving Finance Receivables	2	5
Total Finance Receivables	24	30
Customer | North America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	5	9
2021 and 2020, respectively	16	17
2020 and 2019, respectively	13	12
2019 and 2018, respectively	8	13
2018 and 2017, respectively	5	5
Prior	5	4
Revolving Finance Receivables	5	5
Total Finance Receivables	57	65
Customer | EAME | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	873	1,499
2021 and 2020, respectively	1,014	836
2020 and 2019, respectively	511	577
2019 and 2018, respectively	309	352
2018 and 2017, respectively	179	140
Prior	81	26
Revolving Finance Receivables	0	0
Total Finance Receivables	2,967	3,430
Customer | EAME | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	6	5
2021 and 2020, respectively	12	4
2020 and 2019, respectively	5	3
2019 and 2018, respectively	4	1
2018 and 2017, respectively	0	1
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	27	14
Customer | EAME | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	2	3
2021 and 2020, respectively	4	3
2020 and 2019, respectively	5	3
2019 and 2018, respectively	1	1
2018 and 2017, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	13	10
Customer | EAME | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	3	3
2021 and 2020, respectively	21	11
2020 and 2019, respectively	11	2
2019 and 2018, respectively	5	2
2018 and 2017, respectively	2	0
Prior	1	2
Revolving Finance Receivables	0	0
Total Finance Receivables	43	20
Customer | Asia/Pacific | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	896	1,456
2021 and 2020, respectively	886	943
2020 and 2019, respectively	467	420
2019 and 2018, respectively	154	119
2018 and 2017, respectively	45	40
Prior	9	3
Revolving Finance Receivables	37	36
Total Finance Receivables	2,494	3,017
Customer | Asia/Pacific | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	5	10
2021 and 2020, respectively	13	14
2020 and 2019, respectively	11	10
2019 and 2018, respectively	2	2
2018 and 2017, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	32	36
Customer | Asia/Pacific | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	1	3
2021 and 2020, respectively	6	7
2020 and 2019, respectively	6	4
2019 and 2018, respectively	2	1
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	15	15
Customer | Asia/Pacific | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	1	2
2021 and 2020, respectively	8	10
2020 and 2019, respectively	6	10
2019 and 2018, respectively	6	3
2018 and 2017, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	22	25
Customer | Mining | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	579	944
2021 and 2020, respectively	698	356
2020 and 2019, respectively	247	332
2019 and 2018, respectively	226	194
2018 and 2017, respectively	118	36
Prior	112	161
Revolving Finance Receivables	79	36
Total Finance Receivables	2,059	2,059
Customer | Mining | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	6
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	0	6
Customer | Mining | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	1
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	4
Prior	3	0
Revolving Finance Receivables	0	0
Total Finance Receivables	3	5
Customer | Mining | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	1
2020 and 2019, respectively	1	8
2019 and 2018, respectively	0	9
2018 and 2017, respectively	3	3
Prior	1	1
Revolving Finance Receivables	0	0
Total Finance Receivables	5	22
Customer | Latin America | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	584	617
2021 and 2020, respectively	443	299
2020 and 2019, respectively	176	160
2019 and 2018, respectively	86	70
2018 and 2017, respectively	24	17
Prior	14	18
Revolving Finance Receivables	0	0
Total Finance Receivables	1,327	1,181
Customer | Latin America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	5	4
2021 and 2020, respectively	9	7
2020 and 2019, respectively	5	3
2019 and 2018, respectively	2	3
2018 and 2017, respectively	12	1
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	33	18
Customer | Latin America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	4	3
2021 and 2020, respectively	4	3
2020 and 2019, respectively	2	1
2019 and 2018, respectively	1	1
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	11	8
Customer | Latin America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	4
2021 and 2020, respectively	14	9
2020 and 2019, respectively	14	9
2019 and 2018, respectively	5	7
2018 and 2017, respectively	4	7
Prior	17	14
Revolving Finance Receivables	0	0
Total Finance Receivables	54	50
Customer | Caterpillar Power Finance | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	44	120
2021 and 2020, respectively	94	152
2020 and 2019, respectively	151	119
2019 and 2018, respectively	94	70
2018 and 2017, respectively	30	180
Prior	170	104
Revolving Finance Receivables	118	101
Total Finance Receivables	701	846
Customer | Caterpillar Power Finance | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	0	0
Customer | Caterpillar Power Finance | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	0	0
Customer | Caterpillar Power Finance | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
Prior	8	44
Revolving Finance Receivables	0	0
Total Finance Receivables	8	44
Dealer
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	2,222		$ 2,368
Dealer | Total past due
Financing Receivable, Credit Quality Indicator
2018 and 2017, respectively		$ 78
Prior	$ 62

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Financing Receivable, Past Due
Total Finance Receivables	$ 26,111	$ 27,514	$ 26,773
Caterpillar Purchased Receivables
Financing Receivable, Past Due
Total Finance Receivables	3,962	4,462	$ 3,703
Caterpillar Purchased Receivables | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	28	10
Caterpillar Purchased Receivables | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	15	7
Caterpillar Purchased Receivables | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	18	7
Caterpillar Purchased Receivables | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	61	24
Caterpillar Purchased Receivables | Current
Financing Receivable, Past Due
Total Finance Receivables	3,901	4,438
Caterpillar Purchased Receivables | North America
Financing Receivable, Past Due
Total Finance Receivables	2,232	2,518
Caterpillar Purchased Receivables | North America | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	11	8
Caterpillar Purchased Receivables | North America | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	7	6
Caterpillar Purchased Receivables | North America | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	6	5
Caterpillar Purchased Receivables | North America | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	24	19
Caterpillar Purchased Receivables | North America | Current
Financing Receivable, Past Due
Total Finance Receivables	2,208	2,499
Caterpillar Purchased Receivables | EAME
Financing Receivable, Past Due
Total Finance Receivables	804	846
Caterpillar Purchased Receivables | EAME | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	1	1
Caterpillar Purchased Receivables | EAME | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | EAME | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	2	1
Caterpillar Purchased Receivables | EAME | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	3	2
Caterpillar Purchased Receivables | EAME | Current
Financing Receivable, Past Due
Total Finance Receivables	801	844
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Past Due
Total Finance Receivables	511	621
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	8	0
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Asia/Pacific | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	0	1
Caterpillar Purchased Receivables | Asia/Pacific | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	8	1
Caterpillar Purchased Receivables | Asia/Pacific | Current
Financing Receivable, Past Due
Total Finance Receivables	503	620
Caterpillar Purchased Receivables | Mining
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Mining | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Mining | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Mining | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Mining | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Mining | Current
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Latin America
Financing Receivable, Past Due
Total Finance Receivables	408	474
Caterpillar Purchased Receivables | Latin America | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	8	1
Caterpillar Purchased Receivables | Latin America | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	8	1
Caterpillar Purchased Receivables | Latin America | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	9	0
Caterpillar Purchased Receivables | Latin America | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	25	2
Caterpillar Purchased Receivables | Latin America | Current
Financing Receivable, Past Due
Total Finance Receivables	383	472
Caterpillar Purchased Receivables | Caterpillar Power Finance
Financing Receivable, Past Due
Total Finance Receivables	7	3
Caterpillar Purchased Receivables | Caterpillar Power Finance | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	1	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	1	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | Current
Financing Receivable, Past Due
Total Finance Receivables	$ 6	$ 3

Finance Receivables (Details 6)

Finance Receivables (Details 6) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Financing Receivable, Past Due
Period after which collection of future income is considered as not probable			120 days
Customer
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	$ 183		$ 183		$ 184
Amortized Cost, Non-accrual Without an Allowance	17		17		26
Amortized Cost, 91+ Still Accruing	21		21		36
Interest income recognized for finance receivables on non-accrual status	2	$ 1	11	$ 9
Customer | North America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	54		54		47
Amortized Cost, Non-accrual Without an Allowance	5		5		9
Amortized Cost, 91+ Still Accruing	10		10		12
Customer | EAME
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	42		42		18
Amortized Cost, Non-accrual Without an Allowance	0		0		1
Amortized Cost, 91+ Still Accruing	4		4		2
Customer | Asia/Pacific
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	15		15		19
Amortized Cost, Non-accrual Without an Allowance	0		0		0
Amortized Cost, 91+ Still Accruing	7		7		7
Customer | Mining
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	6		6		8
Amortized Cost, Non-accrual Without an Allowance	1		1		1
Amortized Cost, 91+ Still Accruing	0		0		14
Customer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	57		57		52
Amortized Cost, Non-accrual Without an Allowance	0		0		4
Amortized Cost, 91+ Still Accruing	0		0		1
Customer | Caterpillar Power Finance
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	9		9		40
Amortized Cost, Non-accrual Without an Allowance	11		11		11
Amortized Cost, 91+ Still Accruing	0		0		0
Dealer
Financing Receivable, Past Due
Amortized Cost, 91+ Still Accruing	0		0		0
Interest income recognized for finance receivables on non-accrual status	0	$ 0	0	$ 0
Dealer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	$ 62		$ 62		$ 78

Finance Receivables (Details 7)

Finance Receivables (Details 7) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) contracts	Sep. 30, 2021 USD ($) contracts	Sep. 30, 2022 USD ($) contracts	Sep. 30, 2021 USD ($) contracts
Customer
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	$ 29	$ 17	$ 40	$ 54
Post-TDR Amortized Cost	29	13	39	44
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	0	5	27
Customer | North America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	3	1	4	5
Post-TDR Amortized Cost	3	1	4	5
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	0	0	1
Customer | EAME
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	0	1	1	1
Post-TDR Amortized Cost	0	1	1	1
Customer | Asia/Pacific
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	0	4	0	4
Post-TDR Amortized Cost	0	4	0	4
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	0	0	6
Customer | Mining
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	15	0	15	11
Post-TDR Amortized Cost	15	0	15	5
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	0	5	0
Customer | Latin America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	0	4	0	10
Post-TDR Amortized Cost	0	4	0	10
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	0	0	15
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	11	7	20	23
Post-TDR Amortized Cost	11	3	19	19
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	$ 0	$ 0	$ 0	$ 5
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	0
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0	0

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivatives, Fair Value
Derivative assets	$ 799	$ 208
Derivative liabilities	(172)	(83)
Designated derivatives | Other assets
Derivatives, Fair Value
Derivative assets	699	180
Designated derivatives | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	(123)	(47)
Designated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Derivative assets	605	142
Designated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	(4)	(32)
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Derivative assets	94	38
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	(119)	(15)
Undesignated derivatives | Other assets
Derivatives, Fair Value
Derivative assets	100	28
Undesignated derivatives | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	(49)	(36)
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Derivative assets	100	28
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	$ (49)	$ (36)

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivative
Derivative instruments, notional amount	$ 14,020	$ 13,850

Derivative Financial Instrume_5

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized in AOCI	$ 302	$ 92	$ 673	$ 174
Gains (Losses) Reclassified from AOCI	(311)	(79)	(656)	(145)
Undesignated derivatives | Fair Value Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized on Undesignated Hedges	11	49	(22)	90
Undesignated derivatives | Fair Value Hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized on Undesignated Hedges	16	44	(26)	72
Undesignated derivatives | Fair Value Hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized on Undesignated Hedges	(5)	5	4	18
Designated derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized in AOCI	302	92	673	174
Gains (Losses) Reclassified from AOCI	311	79	656	145
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized in AOCI	276	89	570	170
Gains (Losses) Reclassified from AOCI	303	84	656	166
Designated derivatives | Cash Flow Hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized in AOCI	26	3	103	4
Gains (Losses) Reclassified from AOCI	$ 8	$ (5)	$ 0	$ (21)

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	$ 1,980	$ 2,059
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	(119)	3
Current maturities of long-term debt
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	0	755
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	0	5
Long-term debt
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	1,980	1,304
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	$ (119)	$ (2)

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Derivative
Deferred net gains, net of tax, included in equity, related to cash flow hedges, expected to be reclassified to earnings over the next twelve months	$ 32

Derivative Financial Instrume_8

Derivative Financial Instruments and Risk Management (Details 6) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Assets, Gross amounts recognized	$ 799	$ 208
Assets, Financial instruments not offset	(169)	(67)
Assets, Net amount	630	141
Liabilities, Gross amounts recognized	(172)	(83)
Liabilities, Financial instruments not offset	169	67
Liabilities, Net amount	$ (3)	$ (16)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (1,002)	$ (601)	$ (762)	$ (551)
Gains (losses) on foreign currency translation	(258)	(122)	(456)	(154)
Less: Tax provision/(benefit)	30	13	72	31
Net gains (losses) on foreign currency translation	(288)	(135)	(528)	(185)
Other comprehensive income (loss), net of tax	(288)	(135)	(528)	(185)
Balance at end of period	(1,290)	(736)	(1,290)	(736)
Balance at beginning of period	11	(32)	(12)	(44)
Gains (losses) deferred	302	92	673	174
Less: Tax provision/(benefit)	95	14	158	30
Net gains (losses) deferred	207	78	515	144
(Gains) losses reclassified to earnings	(311)	(79)	(656)	(145)
Less: Tax (provision)/benefit	(99)	(10)	(159)	(22)
Net (gains) losses reclassified to earnings	(212)	(69)	(497)	(123)
Other comprehensive income (loss), net of tax	(5)	9	18	21
Balance at end of period	6	(23)	6	(23)
Total Accumulated other comprehensive income (loss) at end of period	$ (1,284)	$ (759)	$ (1,284)	$ (759)	$ (774)

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segment Reporting Information
External Revenues	$ 690	$ 634	$ 2,010	$ 1,919
Profit before income taxes	188	131	580	516
Interest Expense	151	110	377	351
Depreciation on equipment leased to others	179	191	544	570
Provision for credit losses	(16)	59	34	60
Assets	31,483		31,483		$ 32,387
Capital expenditures	294	311	869	899
Operating Segments
Segment Reporting Information
External Revenues	683	634	1,998	1,915
Profit before income taxes	247	160	686	606
Interest Expense	168	116	418	363
Depreciation on equipment leased to others	179	191	544	570
Provision for credit losses	(16)	59	34	60
Assets	29,273		29,273		31,098
Capital expenditures	292	309	863	893
Unallocated
Segment Reporting Information
External Revenues	10	3	21	12
Profit before income taxes	(80)	(71)	(222)	(218)
Interest Expense	53	43	138	138
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	1,762		1,762		1,458
Capital expenditures	2	2	6	6
Segment Reconciling Items | Timing
Segment Reporting Information
External Revenues	(3)	(3)	(9)	(8)
Profit before income taxes	0	2	3	5
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	18		18		15
Capital expenditures	0	0	0	0
Segment Reconciling Items | Methodology
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	21	40	113	123
Interest Expense	(70)	(49)	(179)	(150)
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	582		582		18
Capital expenditures	0	0	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	0	0	0	0
Interest Expense	0	0	0	0
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	(152)		(152)		(202)
Capital expenditures	0	0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	383	349	1,112	1,044
Profit before income taxes	150	94	411	295
Interest Expense	69	62	181	195
Depreciation on equipment leased to others	126	138	381	409
Provision for credit losses	(5)	10	11	14
Assets	15,014		15,014		15,755
Capital expenditures	205	236	652	680
EAME | Operating Segments
Segment Reporting Information
External Revenues	72	69	207	204
Profit before income taxes	0	26	5	50
Interest Expense	27	6	45	16
Depreciation on equipment leased to others	13	15	41	45
Provision for credit losses	7	0	49	28
Assets	4,724		4,724		5,192
Capital expenditures	45	40	101	67
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	70	78	216	263
Profit before income taxes	33	33	104	133
Interest Expense	19	18	55	66
Depreciation on equipment leased to others	1	1	4	5
Provision for credit losses	1	7	5	7
Assets	3,705		3,705		4,117
Capital expenditures	3	4	6	9
Latin America | Operating Segments
Segment Reporting Information
External Revenues	75	52	204	149
Profit before income taxes	31	(19)	65	15
Interest Expense	37	19	98	48
Depreciation on equipment leased to others	3	2	7	6
Provision for credit losses	(8)	40	(3)	47
Assets	2,539		2,539		2,405
Capital expenditures	3	1	21	9
Mining | Operating Segments
Segment Reporting Information
External Revenues	72	73	218	215
Profit before income taxes	21	22	66	79
Interest Expense	11	8	29	28
Depreciation on equipment leased to others	35	34	109	103
Provision for credit losses	(4)	2	(14)	(17)
Assets	2,553		2,553		2,672
Capital expenditures	36	28	83	128
Caterpillar Power Finance | Operating Segments
Segment Reporting Information
External Revenues	11	13	41	40
Profit before income taxes	12	4	35	34
Interest Expense	5	3	10	10
Depreciation on equipment leased to others	1	1	2	2
Provision for credit losses	(7)	0	(14)	(19)
Assets	738		738		$ 957
Capital expenditures	$ 0	$ 0	$ 0	$ 0

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 25	$ 36
Total assets	31,483	32,387
Liabilities	28,604	29,406
Maximum
Guarantor Obligations
Related recorded liability	1	1
Variable interest entity, primary beneficiary
Guarantor Obligations
Total assets	1,090	888
Liabilities	$ 1,090	$ 888

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Recurring basis | Fair Value, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative financial instruments, net asset position	$ 627	$ 125

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Loans carried at fair value	$ 90	$ 100

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Level 2
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Long-term debt	$ 21,886	$ 22,797
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	18,038	19,047
Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	18,657	19,068
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Long-term debt	22,724	22,594
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Finance leases and failed sale leasebacks, Carrying Value	$ 7,120	$ 8,110

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Estimated annual tax rate	27%	24%