Caterpillar Financial Services 10-Q 2 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Aug. 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues:
Retail finance	$ 354	$ 301	$ 694	$ 591
Operating lease	222	224	440	449
Wholesale finance	173	99	324	183
Other, net	44	44	103	97
Total revenues	793	668	1,561	1,320
Expenses:
Interest	245	120	462	226
Depreciation on equipment leased to others	176	181	350	365
General, operating and administrative	148	130	281	261
Provision for credit losses	(21)	23	(12)	50
Other	10	6	16	13
Total expenses	558	460	1,097	915
Other income (expense)	(30)	(9)	(55)	(13)
Profit before income taxes	205	199	409	392
Provision for income taxes	52	53	105	102
Profit of consolidated companies	153	146	304	290
Less: Profit attributable to noncontrolling interests	3	3	5	4
Profit attributable to Caterpillar Financial Services Corporation	$ 150	$ 143	$ 299	$ 286

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 153	$ 146	$ 304	$ 290
Other comprehensive income (loss), net of tax (Note 5):
Foreign currency translation	(41)	(257)	3	(247)
Derivative financial instruments	(1)	7	0	23
Total Other comprehensive income (loss), net of tax	(42)	(250)	3	(224)
Comprehensive income (loss)	111	(104)	307	66
Less: Comprehensive income (loss) attributable to noncontrolling interests	(5)	(6)	(1)	(3)
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 116	$ (98)	$ 308	$ 69

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets:
Cash and cash equivalents	$ 963	$ 868
Finance receivables, net of Allowance for credit losses of $320 and $346	27,374	26,441
Notes receivable from Caterpillar	534	482
Equipment on operating leases, net	3,016	2,911
Other assets	1,135	1,255
Total assets	33,022	31,957
Liabilities and shareholder’s equity:
Payable to dealers and others	157	163
Payable to Caterpillar - borrowings and other	124	124
Accrued expenses	448	380
Short-term borrowings	5,548	5,954
Current maturities of long-term debt	8,123	5,202
Long-term debt	14,450	16,216
Other liabilities	977	955
Total liabilities	29,827	28,994
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	3,281	3,057
Accumulated other comprehensive income (loss)	(1,038)	(1,047)
Noncontrolling interests	205	206
Total shareholder’s equity	3,195	2,963
Total liabilities and shareholder’s equity	$ 33,022	$ 31,957

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 320	$ 346
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, 2021	$ 2,981	$ 745	$ 2	$ 2,797	$ (774)	$ 211
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	290			286		4
Dividend paid to Caterpillar	0
Foreign currency translation, net of tax	(247)				(240)	(7)
Derivative financial instruments, net of tax	23				23
Balance at Jun. 30, 2022	3,047	745	2	3,083	(991)	208
Balance at Mar. 31, 2022	3,151	745	2	2,940	(750)	214
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	146			143		3
Foreign currency translation, net of tax	(257)				(248)	(9)
Derivative financial instruments, net of tax	7				7
Balance at Jun. 30, 2022	3,047	745	2	3,083	(991)	208
Balance at Dec. 31, 2022	2,963	745	2	3,057	(1,047)	206
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	304			299		5
Dividend paid to Caterpillar	(75)			(75)
Foreign currency translation, net of tax	3				9	(6)
Derivative financial instruments, net of tax	0
Balance at Jun. 30, 2023	3,195	745	2	3,281	(1,038)	205
Balance at Mar. 31, 2023	3,084	745	2	3,131	(1,004)	210
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	153			150		3
Foreign currency translation, net of tax	(41)				(33)	(8)
Derivative financial instruments, net of tax	(1)				(1)
Balance at Jun. 30, 2023	$ 3,195	$ 745	$ 2	$ 3,281	$ (1,038)	$ 205

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Profit of consolidated companies	$ 304	$ 290
Adjustments for non-cash items:
Depreciation and amortization	357	372
Accretion of Caterpillar purchased receivable revenue	(296)	(175)
Provision for credit losses	(12)	50
Other, net	(73)	20
Changes in assets and liabilities:
Other assets	64	14
Payable to dealers and others	7	23
Accrued expenses	29	(29)
Other payables with Caterpillar	(1)	3
Other liabilities	33	31
Net cash provided by operating activities	412	599
Cash flows from investing activities:
Expenditures for equipment on operating leases	(678)	(570)
Capital expenditures - excluding equipment on operating leases	(10)	(5)
Proceeds from disposals of equipment	340	429
Additions to finance receivables	(7,951)	(7,169)
Collections of finance receivables	7,520	6,899
Net changes in Caterpillar purchased receivables	(83)	615
Proceeds from sales of receivables	29	21
Net change in variable lending to Caterpillar	(77)	(19)
Additions to other notes receivable from Caterpillar	0	(91)
Collections of other notes receivable from Caterpillar	26	22
Settlements of undesignated derivatives	0	(26)
Net cash provided by (used for) investing activities	(884)	106
Cash flows from financing activities:
Net change in variable lending from Caterpillar	1	0
Proceeds from debt issued (original maturities greater than three months)	3,299	4,015
Payments on debt issued (original maturities greater than three months)	(2,208)	(4,233)
Short-term borrowings, net (original maturities three months or less)	(403)	(412)
Dividend paid to Caterpillar	(75)	0
Net cash provided by (used for) financing activities	614	(630)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(47)	(8)
Increase (decrease) in cash, cash equivalents and restricted cash	95	67
Cash, cash equivalents and restricted cash at beginning of year	870	614
Cash, cash equivalents and restricted cash at end of period	$ 965	$ 681

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Cash Flows [Abstract]
Restricted cash and cash equivalents	$ 2	$ 2

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2023
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 six months ended June 30, 2023 and 2022, (b) the consolidated comprehensive income for the three and six months ended June 30, 2023 and 2022, (c) the consolidated financial position at June 30, 2023 and December 31, 2022, (d) the consolidated changes in shareholder’s equity for the three and six months ended June 30, 2023 and 2022 and (e) the consolidated cash flows for the six months ended June 30, 2023 and 2022. 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, 2022 (2022 Form 10-K). The December 31, 2022 financial position data included herein was derived from the audited consolidated financial statements included in the 2022 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	6 Months Ended
	Jun. 30, 2023
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). Effective January 1, 2023, we adopted ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures prospectively. The ASU eliminates accounting guidance for troubled debt restructurings (TDRs), enhances disclosures for certain receivable modifications related to borrowers experiencing financial difficulty, and requires disclosure of current period gross write-offs by year of origination. See Note 3 for additional information. B. Accounting Standards Issued But Not Yet Adopted We consider the applicability and impact of all ASUs. We have assessed the ASUs and determined that they either were not applicable or were not expected to have a material impact on our financial statements.

Finance Receivables

Finance Receivables	6 Months Ended
	Jun. 30, 2023
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) June 30, December 31, Retail loans, net (1) $ 15,403 $ 14,973 Retail leases, net 6,714 6,965 Caterpillar purchased receivables, net 4,748 4,297 Wholesale loans, net (1) 823 545 Wholesale leases, net 6 7 Total finance receivables 27,694 26,787 Less: Allowance for credit losses (320) (346) Total finance receivables, net $ 27,374 $ 26,441 (1) Includes failed sale leasebacks. Finance leases Revenues from finance leases were $104 million and $109 million for the three months ended June 30, 2023 and 2022, respectively, and $208 million and $221 million for the six months ended June 30, 2023 and 2022, 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. We also provide financing for power generation facilities that, in most cases, incorporate Caterpillar products. The average original term of our customer finance receivable portfolio was approximately 51 months with an average remaining term of approximately 27 months as of June 30, 2023. 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 six months ended June 30, 2023, our forecasts reflected a continuation of the trend of relatively low unemployment rates and delinquencies within our portfolio. However, industry delinquencies show an increasing trend as persistently 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 six months ended June 30, 2023. 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 six months ended June 30, 2023. 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 Eurasia. • 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. • Power - Finance receivables originated worldwide related to 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 June 30, 2023 Three Months Ended June 30, 2022 Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 278 $ 65 $ 5 $ 348 $ 271 $ 81 $ 5 $ 357 Write-offs (21) — — (21) (18) — — (18) Recoveries 13 — — 13 18 — — 18 Provision for credit losses (1) (6) (15) — (21) 22 1 (1) 22 Other 1 — — 1 (3) — — (3) Ending Balance $ 265 $ 50 $ 5 $ 320 $ 290 $ 82 $ 4 $ 376 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 277 $ 65 $ 4 $ 346 $ 251 $ 82 $ 4 $ 337 Write-offs (41) — — (41) (38) — — (38) Recoveries 23 — — 23 30 — — 30 Provision for credit losses (1) 4 (15) 1 (10) 48 — — 48 Other 2 — — 2 (1) — — (1) Ending Balance $ 265 $ 50 $ 5 $ 320 $ 290 $ 82 $ 4 $ 376 Finance Receivables $ 20,325 $ 2,621 $ 4,748 $ 27,694 $ 20,483 $ 2,277 $ 3,979 $ 26,739 (1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables. Gross write-offs by origination year for the Customer portfolio segment were as follows: (Millions of Dollars) Three Months Ended June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Finance Receivables Total North America $ — $ 2 $ 2 $ 1 $ 1 $ 1 $ 3 $ 10 EAME — — 2 1 — 1 — 4 Asia/Pacific — 1 1 2 — — — 4 Latin America — 2 1 — — — — 3 Total $ — $ 5 $ 6 $ 4 $ 1 $ 2 $ 3 $ 21 Six Months Ended June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Finance Receivables Total North America $ — $ 5 $ 5 $ 1 $ 1 $ 1 $ 7 $ 20 EAME — 1 2 2 — 1 — 6 Asia/Pacific — 1 3 3 1 — — 8 Latin America — 2 2 2 1 — — 7 Total $ — $ 9 $ 12 $ 8 $ 3 $ 2 $ 7 $ 41 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) June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Total North America Current $ 2,056 $ 3,251 $ 2,610 $ 1,104 $ 407 $ 109 $ 285 $ 9,822 31-60 days past due 13 31 24 15 10 2 3 98 61-90 days past due 3 13 10 6 2 1 1 36 91+ days past due 1 16 20 11 5 4 2 59 EAME Current 623 1,091 757 361 190 155 — 3,177 31-60 days past due 3 8 11 4 1 1 — 28 61-90 days past due 1 5 6 3 2 — — 17 91+ days past due — 16 18 11 3 1 — 49 Asia/Pacific Current 613 882 543 211 67 19 41 2,376 31-60 days past due — 8 11 7 1 — — 27 61-90 days past due — 4 5 2 1 — — 12 91+ days past due 1 4 5 4 1 — — 15 Mining Current 659 759 457 175 133 70 38 2,291 31-60 days past due — 42 32 — — — — 74 61-90 days past due — — — — — — — — 91+ days past due — 2 1 — — — — 3 Latin America Current 389 658 305 99 38 13 — 1,502 31-60 days past due 2 16 7 3 4 — — 32 61-90 days past due — 5 3 4 1 — — 13 91+ days past due — 16 21 9 9 22 — 77 Power Current 30 74 75 89 47 145 154 614 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 3 — 3 Totals by Aging Category Current 4,370 6,715 4,747 2,039 882 511 518 19,782 31-60 days past due 18 105 85 29 16 3 3 259 61-90 days past due 4 27 24 15 6 1 1 78 91+ days past due 2 54 65 35 18 30 2 206 Total $ 4,394 $ 6,901 $ 4,921 $ 2,118 $ 922 $ 545 $ 524 $ 20,325 (Millions of dollars) December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total North America Current $ 3,915 $ 3,276 $ 1,525 $ 653 $ 206 $ 34 $ 240 $ 9,849 31-60 days past due 25 26 18 12 4 1 4 90 61-90 days past due 9 15 7 3 1 — 3 38 91+ days past due 11 16 12 6 4 3 4 56 EAME Current 1,270 953 477 280 155 68 — 3,203 31-60 days past due 10 12 7 1 1 — — 31 61-90 days past due 8 4 3 1 — — — 16 91+ days past due 6 25 16 4 1 1 — 53 Asia/Pacific Current 1,174 805 393 124 37 5 40 2,578 31-60 days past due 10 12 8 1 1 — — 32 61-90 days past due 2 5 4 2 — — — 13 91+ days past due 2 6 6 4 — — — 18 Mining Current 875 627 227 193 94 108 80 2,204 31-60 days past due — 1 — — — — — 1 61-90 days past due — — — — — — — — 91+ days past due — — — — — 1 — 1 Latin America Current 770 400 150 69 26 20 — 1,435 31-60 days past due 7 8 4 2 — 1 — 22 61-90 days past due 2 5 1 1 — — — 9 91+ days past due 2 13 11 2 1 — — 29 Power Current 82 87 146 51 18 161 125 670 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 5 — 5 Totals by Aging Category Current 8,086 6,148 2,918 1,370 536 396 485 19,939 31-60 days past due 52 59 37 16 6 2 4 176 61-90 days past due 21 29 15 7 1 — 3 76 91+ days past due 21 60 45 16 6 10 4 162 Total $ 8,180 $ 6,296 $ 3,015 $ 1,409 $ 549 $ 408 $ 496 $ 20,353 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 June 30, 2023 and December 31, 2022, our total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $47 million and $62 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) June 30, 2023 31-60 61-90 91+ Total Current Total Finance North America $ 8 $ 4 $ 4 $ 16 $ 2,770 $ 2,786 EAME 1 1 1 3 876 879 Asia/Pacific 1 — — 1 619 620 Latin America 7 6 12 25 425 450 Power 1 — 1 2 11 13 Total $ 18 $ 11 $ 18 $ 47 $ 4,701 $ 4,748 (Millions of dollars) December 31, 2022 31-60 61-90 91+ Total Current Total Finance North America $ 11 $ 7 $ 4 $ 22 $ 2,458 $ 2,480 EAME 1 — 2 3 812 815 Asia/Pacific 6 2 2 10 555 565 Latin America 9 2 14 25 406 431 Power 1 — — 1 5 6 Total $ 28 $ 11 $ 22 $ 61 $ 4,236 $ 4,297 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. 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) June 30, 2023 December 31, 2022 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 54 $ — $ 15 $ 52 $ 4 $ 11 EAME 44 — 7 43 — 10 Asia/Pacific 10 — 5 11 — 7 Mining 3 — — — 1 — Latin America 85 — — 45 — — Power 10 — — 5 11 — Total $ 206 $ — $ 27 $ 156 $ 16 $ 28 There were $47 million and $62 million, respectively, in finance receivables in our Dealer portfolio segment on non-accrual status as of June 30, 2023 and December 31, 2022, all of which was in Latin America. Modifications We periodically modify the terms of our finance receivable agreements in response to borrowers’ financial difficulty. Typically, the types of modifications granted are payment deferrals, interest only payment periods and/or term extensions. Many modifications we grant are for commercial reasons or for borrowers experiencing some form of short-term financial stress and may result in insignificant payment delays. We do not consider these borrowers to be experiencing financial difficulty. Modifications for borrowers we do consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer or a combination of both. During the three and six months ended June 30, 2023, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in the Dealer or Caterpillar Purchased Receivables portfolio segments. The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the three and six months ended June 30, 2023, was $22 million and $30 million, respectively. Total modifications with borrowers experiencing financial difficulty represented 0.08 percent and 0.11 percent of our finance receivable portfolio for the same periods, respectively. After we modify a finance receivable, we continue to track its performance under its most recent modified terms. As of June 30, 2023, all finance receivables modified with borrowers experiencing financial difficulty are current except for $1 million in EAME that was 31-60 days past due. For the three and six months ended June 30, 2023, the financial effects of term extensions for borrowers experiencing financial difficulty added a weighted average of 18 and 21 months, respectively, to the terms of modified contracts. For the three and six months ended June 30, 2023, the financial effects of payment delays for borrowers experiencing financial difficulty resulted in weighted average payment deferral and/or interest only periods of 7 and 8 months, respectively. The effect of most modifications made to finance receivables for borrowers experiencing financial difficulty is already included in the allowance for credit losses based on the methodologies used to estimate the allowance; therefore, a change to the allowance for credit losses is generally not recorded upon modification. On rare occasions when principal forgiveness is provided, the amount forgiven is written off against the allowance for credit losses. Troubled debt restructurings Prior to the adoption of ASU 2022-02, a modification constituted a TDR when the lender granted a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may have included extended contract maturities, inclusion of interest only periods, below market interest rates, payment deferrals and reduction of principal and/or accrued interest. There were no finance receivables modified as TDRs during the three and six months ended June 30, 2022 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 Pre-TDR Post-TDR North America $ 1 $ 1 Power 3 2 Total $ 4 $ 3 Six Months Ended Pre-TDR Post-TDR North America $ 1 $ 1 EAME 1 1 Power 9 8 Total $ 11 $ 10 During the three months ended June 30, 2022, there were no 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. During the six months ended June 30, 2022, the Post-TDR amortized cost of TDRs in the Customer portfolio segment with a payment default which had been modified within twelve months prior to the default date was $5 million, all of which was in Mining.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments and Risk Management	Derivative Financial Instruments and Risk Management Our earnings and cash flows 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) June 30, 2023 December 31, 2022 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 258 $ (60) $ 305 $ (44) Interest rate contracts 65 (108) 87 (113) $ 323 $ (168) $ 392 $ (157) Undesignated derivatives Foreign exchange contracts $ 31 $ (51) $ 25 $ (42) $ 31 $ (51) $ 25 $ (42) (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 $12.78 billion and $13.18 billion as of June 30, 2023 and December 31, 2022, 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 June 30, 2023 2022 2023 2022 2023 2022 Foreign exchange contracts $ 33 $ 37 $ 16 $ 321 $ 18 $ 337 Interest rate contracts (18) 3 14 21 14 (2) $ 15 $ 40 $ 30 $ 342 $ 32 $ 335 Six Months Ended June 30, 2023 2022 2023 2022 2023 2022 Foreign exchange contracts $ (1) $ (42) $ (17) $ 294 $ (32) $ 353 Interest rate contracts (33) 9 12 77 28 (8) $ (34) $ (33) $ (5) $ 371 $ (4) $ 345 (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 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Current maturities of long-term debt $ 195 $ — $ (5) $ — Long-term debt 1,952 2,091 (102) (112) Total $ 2,147 $ 2,091 $ (107) $ (112) As of June 30, 2023, $31 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 June 30, 2023 and December 31, 2022, 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) June 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Gross amounts recognized $ 354 $ (219) $ 417 $ (199) Financial instruments not offset (103) 103 (108) 108 Net amount $ 251 $ (116) $ 309 $ (91)

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2023
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 Six Months Ended 2023 2022 2023 2022 Foreign currency translation Balance at beginning of period $ (1,026) $ (754) $ (1,068) $ (762) Gains (losses) on foreign currency translation (33) (217) — (198) Less: Tax provision/(benefit) — 31 (9) 42 Net gains (losses) on foreign currency translation (33) (248) 9 (240) Other comprehensive income (loss), net of tax (33) (248) 9 (240) Balance at end of period $ (1,059) $ (1,002) $ (1,059) $ (1,002) Derivative financial instruments Balance at beginning of period $ 22 $ 4 $ 21 $ (12) Gains (losses) deferred 30 342 (5) 371 Less: Tax provision/(benefit) 7 57 (2) 63 Net gains (losses) deferred 23 285 (3) 308 (Gains) losses reclassified to earnings (32) (335) 4 (345) Less: Tax (provision)/benefit (8) (57) 1 (60) Net (gains) losses reclassified to earnings (24) (278) 3 (285) Other comprehensive income (loss), net of tax (1) 7 — 23 Balance at end of period $ 21 $ 11 $ 21 $ 11 Total Accumulated other comprehensive income (loss) at end of period $ (1,038) $ (991) $ (1,038) $ (991)

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information A. Basis for Segment Information The Chief Operating Decision Maker (the CEO) allocates resources and manages performance for our six operating segments described as follows. Our operating segments provide financing alternatives to customers and dealers around the world for Caterpillar products and services and power generation facilities that, in most cases, incorporate Caterpillar products. Financing plans 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 Eurasia. • 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. • Power - Provides financing worldwide 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 June 30 was as follows: (Millions of dollars) 2023 External Profit Interest Depreciation Provision Assets at Capital North America $ 436 $ 154 $ 108 $ 127 $ 2 $ 15,777 $ 293 EAME 88 18 25 15 2 5,100 12 Asia/Pacific 73 33 23 1 (3) 3,787 1 Latin America 87 47 44 3 (21) 2,834 7 Mining 79 25 18 30 (6) 2,879 96 Power 14 (1) 6 — 5 650 — Total Segments 777 276 224 176 (21) 31,027 409 Unallocated 20 (131) 95 — — 1,941 1 Timing (4) — — — — 19 — Methodology — 60 (74) — — 211 — Inter-segment Eliminations (1) — — — — — (176) — Total $ 793 $ 205 $ 245 $ 176 $ (21) $ 33,022 $ 410 2022 External Profit Interest Depreciation Provision Assets at Capital North America $ 370 $ 134 $ 58 $ 127 $ 10 $ 15,229 $ 248 EAME 68 5 11 14 16 5,067 42 Asia/Pacific 71 34 19 2 3 3,921 1 Latin America 71 15 35 2 6 2,636 16 Mining 74 25 10 36 (8) 2,700 25 Power 11 8 2 — (4) 704 — Total Segments 665 221 135 181 23 30,257 332 Unallocated 6 (70) 43 — — 1,628 2 Timing (3) 2 — — — 18 — Methodology — 46 (58) — — 278 — Inter-segment Eliminations (1) — — — — — (224) — Total $ 668 $ 199 $ 120 $ 181 $ 23 $ 31,957 $ 334 (1) Elimination is primarily related to intercompany loans Supplemental segment data and reconciliations to consolidated external reporting for the six months ended June 30 was as follows: (Millions of dollars) 2023 External Profit Interest Depreciation Provision Assets at Capital North America $ 854 $ 303 $ 203 $ 250 $ 7 $ 15,777 $ 515 EAME 172 44 46 29 2 5,100 36 Asia/Pacific 143 67 46 2 (4) 3,787 2 Latin America 169 66 84 6 (15) 2,834 10 Mining 167 59 33 62 (7) 2,879 119 Power 28 4 12 1 5 650 — Total Segments 1,533 543 424 350 (12) 31,027 682 Unallocated 35 (241) 171 — — 1,941 6 Timing (7) — — — — 19 — Methodology — 107 (133) — — 211 — Inter-segment Eliminations (1) — — — — — (176) — Total $ 1,561 $ 409 $ 462 $ 350 $ (12) $ 33,022 $ 688 2022 External Profit Interest Depreciation Provision Assets at Capital North America $ 729 $ 261 $ 112 $ 255 $ 16 $ 15,229 $ 447 EAME 135 5 18 28 42 5,067 56 Asia/Pacific 146 71 36 3 4 3,921 3 Latin America 129 34 61 4 5 2,636 18 Mining 146 45 18 74 (10) 2,700 47 Power 30 23 5 1 (7) 704 — Total Segments 1,315 439 250 365 50 30,257 571 Unallocated 11 (142) 85 — — 1,628 4 Timing (6) 3 — — — 18 — Methodology — 92 (109) — — 278 — Inter-segment Eliminations (1) — — — — — (224) — Total $ 1,320 $ 392 $ 226 $ 365 $ 50 $ 31,957 $ 575 (1) Elimination is primarily related to intercompany loans

Commitments and Contingent Liab

Commitments and Contingent Liabilities	6 Months Ended
	Jun. 30, 2023
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 June 30, 2023 and December 31, 2022, 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 $20 million and $26 million at June 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022, the SPC’s assets of $1.24 billion and $971 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 $1.24 billion and $970 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	6 Months Ended
	Jun. 30, 2023
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 $135 million and $218 million as of June 30, 2023 and December 31, 2022, 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 $58 million and $68 million as of June 30, 2023 and December 31, 2022, 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. Financial instruments not carried at fair value were as follows: (Millions of dollars) June 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Fair Reference Assets Finance receivables, net (excluding finance leases (1) ) $ 20,217 $ 19,535 $ 19,085 $ 18,448 3 Note 3 Liabilities Long-term debt $ 22,573 $ 21,963 $ 21,418 $ 20,686 2 (1) Represents finance leases and failed sale leasebacks of $7.16 billion and $7.36 billion as of June 30, 2023 and December 31, 2022, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes

Finance Receivables (Tables)

Finance Receivables (Tables)	6 Months Ended
	Jun. 30, 2023	Jun. 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) June 30, December 31, Retail loans, net (1) $ 15,403 $ 14,973 Retail leases, net 6,714 6,965 Caterpillar purchased receivables, net 4,748 4,297 Wholesale loans, net (1) 823 545 Wholesale leases, net 6 7 Total finance receivables 27,694 26,787 Less: Allowance for credit losses (320) (346) Total finance receivables, net $ 27,374 $ 26,441 (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 June 30, 2023 Three Months Ended June 30, 2022 Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 278 $ 65 $ 5 $ 348 $ 271 $ 81 $ 5 $ 357 Write-offs (21) — — (21) (18) — — (18) Recoveries 13 — — 13 18 — — 18 Provision for credit losses (1) (6) (15) — (21) 22 1 (1) 22 Other 1 — — 1 (3) — — (3) Ending Balance $ 265 $ 50 $ 5 $ 320 $ 290 $ 82 $ 4 $ 376 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 277 $ 65 $ 4 $ 346 $ 251 $ 82 $ 4 $ 337 Write-offs (41) — — (41) (38) — — (38) Recoveries 23 — — 23 30 — — 30 Provision for credit losses (1) 4 (15) 1 (10) 48 — — 48 Other 2 — — 2 (1) — — (1) Ending Balance $ 265 $ 50 $ 5 $ 320 $ 290 $ 82 $ 4 $ 376 Finance Receivables $ 20,325 $ 2,621 $ 4,748 $ 27,694 $ 20,483 $ 2,277 $ 3,979 $ 26,739 (1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.
Write-offs by origination year	Gross write-offs by origination year for the Customer portfolio segment were as follows: (Millions of Dollars) Three Months Ended June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Finance Receivables Total North America $ — $ 2 $ 2 $ 1 $ 1 $ 1 $ 3 $ 10 EAME — — 2 1 — 1 — 4 Asia/Pacific — 1 1 2 — — — 4 Latin America — 2 1 — — — — 3 Total $ — $ 5 $ 6 $ 4 $ 1 $ 2 $ 3 $ 21 Six Months Ended June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Finance Receivables Total North America $ — $ 5 $ 5 $ 1 $ 1 $ 1 $ 7 $ 20 EAME — 1 2 2 — 1 — 6 Asia/Pacific — 1 3 3 1 — — 8 Latin America — 2 2 2 1 — — 7 Total $ — $ 9 $ 12 $ 8 $ 3 $ 2 $ 7 $ 41
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) June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Total North America Current $ 2,056 $ 3,251 $ 2,610 $ 1,104 $ 407 $ 109 $ 285 $ 9,822 31-60 days past due 13 31 24 15 10 2 3 98 61-90 days past due 3 13 10 6 2 1 1 36 91+ days past due 1 16 20 11 5 4 2 59 EAME Current 623 1,091 757 361 190 155 — 3,177 31-60 days past due 3 8 11 4 1 1 — 28 61-90 days past due 1 5 6 3 2 — — 17 91+ days past due — 16 18 11 3 1 — 49 Asia/Pacific Current 613 882 543 211 67 19 41 2,376 31-60 days past due — 8 11 7 1 — — 27 61-90 days past due — 4 5 2 1 — — 12 91+ days past due 1 4 5 4 1 — — 15 Mining Current 659 759 457 175 133 70 38 2,291 31-60 days past due — 42 32 — — — — 74 61-90 days past due — — — — — — — — 91+ days past due — 2 1 — — — — 3 Latin America Current 389 658 305 99 38 13 — 1,502 31-60 days past due 2 16 7 3 4 — — 32 61-90 days past due — 5 3 4 1 — — 13 91+ days past due — 16 21 9 9 22 — 77 Power Current 30 74 75 89 47 145 154 614 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 3 — 3 Totals by Aging Category Current 4,370 6,715 4,747 2,039 882 511 518 19,782 31-60 days past due 18 105 85 29 16 3 3 259 61-90 days past due 4 27 24 15 6 1 1 78 91+ days past due 2 54 65 35 18 30 2 206 Total $ 4,394 $ 6,901 $ 4,921 $ 2,118 $ 922 $ 545 $ 524 $ 20,325 (Millions of dollars) December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total North America Current $ 3,915 $ 3,276 $ 1,525 $ 653 $ 206 $ 34 $ 240 $ 9,849 31-60 days past due 25 26 18 12 4 1 4 90 61-90 days past due 9 15 7 3 1 — 3 38 91+ days past due 11 16 12 6 4 3 4 56 EAME Current 1,270 953 477 280 155 68 — 3,203 31-60 days past due 10 12 7 1 1 — — 31 61-90 days past due 8 4 3 1 — — — 16 91+ days past due 6 25 16 4 1 1 — 53 Asia/Pacific Current 1,174 805 393 124 37 5 40 2,578 31-60 days past due 10 12 8 1 1 — — 32 61-90 days past due 2 5 4 2 — — — 13 91+ days past due 2 6 6 4 — — — 18 Mining Current 875 627 227 193 94 108 80 2,204 31-60 days past due — 1 — — — — — 1 61-90 days past due — — — — — — — — 91+ days past due — — — — — 1 — 1 Latin America Current 770 400 150 69 26 20 — 1,435 31-60 days past due 7 8 4 2 — 1 — 22 61-90 days past due 2 5 1 1 — — — 9 91+ days past due 2 13 11 2 1 — — 29 Power Current 82 87 146 51 18 161 125 670 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 5 — 5 Totals by Aging Category Current 8,086 6,148 2,918 1,370 536 396 485 19,939 31-60 days past due 52 59 37 16 6 2 4 176 61-90 days past due 21 29 15 7 1 — 3 76 91+ days past due 21 60 45 16 6 10 4 162 Total $ 8,180 $ 6,296 $ 3,015 $ 1,409 $ 549 $ 408 $ 496 $ 20,353
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) June 30, 2023 31-60 61-90 91+ Total Current Total Finance North America $ 8 $ 4 $ 4 $ 16 $ 2,770 $ 2,786 EAME 1 1 1 3 876 879 Asia/Pacific 1 — — 1 619 620 Latin America 7 6 12 25 425 450 Power 1 — 1 2 11 13 Total $ 18 $ 11 $ 18 $ 47 $ 4,701 $ 4,748 (Millions of dollars) December 31, 2022 31-60 61-90 91+ Total Current Total Finance North America $ 11 $ 7 $ 4 $ 22 $ 2,458 $ 2,480 EAME 1 — 2 3 812 815 Asia/Pacific 6 2 2 10 555 565 Latin America 9 2 14 25 406 431 Power 1 — — 1 5 6 Total $ 28 $ 11 $ 22 $ 61 $ 4,236 $ 4,297
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) June 30, 2023 December 31, 2022 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 54 $ — $ 15 $ 52 $ 4 $ 11 EAME 44 — 7 43 — 10 Asia/Pacific 10 — 5 11 — 7 Mining 3 — — — 1 — Latin America 85 — — 45 — — Power 10 — — 5 11 — Total $ 206 $ — $ 27 $ 156 $ 16 $ 28
Finance receivables modified as TDRs		Finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Three Months Ended Pre-TDR Post-TDR North America $ 1 $ 1 Power 3 2 Total $ 4 $ 3 Six Months Ended Pre-TDR Post-TDR North America $ 1 $ 1 EAME 1 1 Power 9 8 Total $ 11 $ 10 During the three months ended June 30, 2022, there were no 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. During the six months ended June 30, 2022, the Post-TDR amortized cost of TDRs in the Customer portfolio segment with a payment default which had been modified within twelve months prior to the default date was $5 million, all of which was in Mining.

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)	6 Months Ended
	Jun. 30, 2023
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) June 30, 2023 December 31, 2022 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 258 $ (60) $ 305 $ (44) Interest rate contracts 65 (108) 87 (113) $ 323 $ (168) $ 392 $ (157) Undesignated derivatives Foreign exchange contracts $ 31 $ (51) $ 25 $ (42) $ 31 $ (51) $ 25 $ (42) (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 June 30, 2023 2022 2023 2022 2023 2022 Foreign exchange contracts $ 33 $ 37 $ 16 $ 321 $ 18 $ 337 Interest rate contracts (18) 3 14 21 14 (2) $ 15 $ 40 $ 30 $ 342 $ 32 $ 335 Six Months Ended June 30, 2023 2022 2023 2022 2023 2022 Foreign exchange contracts $ (1) $ (42) $ (17) $ 294 $ (32) $ 353 Interest rate contracts (33) 9 12 77 28 (8) $ (34) $ (33) $ (5) $ 371 $ (4) $ 345 (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 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Current maturities of long-term debt $ 195 $ — $ (5) $ — Long-term debt 1,952 2,091 (102) (112) Total $ 2,147 $ 2,091 $ (107) $ (112)
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) June 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Gross amounts recognized $ 354 $ (219) $ 417 $ (199) Financial instruments not offset (103) 103 (108) 108 Net amount $ 251 $ (116) $ 309 $ (91)

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2023
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 Six Months Ended 2023 2022 2023 2022 Foreign currency translation Balance at beginning of period $ (1,026) $ (754) $ (1,068) $ (762) Gains (losses) on foreign currency translation (33) (217) — (198) Less: Tax provision/(benefit) — 31 (9) 42 Net gains (losses) on foreign currency translation (33) (248) 9 (240) Other comprehensive income (loss), net of tax (33) (248) 9 (240) Balance at end of period $ (1,059) $ (1,002) $ (1,059) $ (1,002) Derivative financial instruments Balance at beginning of period $ 22 $ 4 $ 21 $ (12) Gains (losses) deferred 30 342 (5) 371 Less: Tax provision/(benefit) 7 57 (2) 63 Net gains (losses) deferred 23 285 (3) 308 (Gains) losses reclassified to earnings (32) (335) 4 (345) Less: Tax (provision)/benefit (8) (57) 1 (60) Net (gains) losses reclassified to earnings (24) (278) 3 (285) Other comprehensive income (loss), net of tax (1) 7 — 23 Balance at end of period $ 21 $ 11 $ 21 $ 11 Total Accumulated other comprehensive income (loss) at end of period $ (1,038) $ (991) $ (1,038) $ (991)

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Information	Supplemental segment data and reconciliations to consolidated external reporting for the three months ended June 30 was as follows: (Millions of dollars) 2023 External Profit Interest Depreciation Provision Assets at Capital North America $ 436 $ 154 $ 108 $ 127 $ 2 $ 15,777 $ 293 EAME 88 18 25 15 2 5,100 12 Asia/Pacific 73 33 23 1 (3) 3,787 1 Latin America 87 47 44 3 (21) 2,834 7 Mining 79 25 18 30 (6) 2,879 96 Power 14 (1) 6 — 5 650 — Total Segments 777 276 224 176 (21) 31,027 409 Unallocated 20 (131) 95 — — 1,941 1 Timing (4) — — — — 19 — Methodology — 60 (74) — — 211 — Inter-segment Eliminations (1) — — — — — (176) — Total $ 793 $ 205 $ 245 $ 176 $ (21) $ 33,022 $ 410 2022 External Profit Interest Depreciation Provision Assets at Capital North America $ 370 $ 134 $ 58 $ 127 $ 10 $ 15,229 $ 248 EAME 68 5 11 14 16 5,067 42 Asia/Pacific 71 34 19 2 3 3,921 1 Latin America 71 15 35 2 6 2,636 16 Mining 74 25 10 36 (8) 2,700 25 Power 11 8 2 — (4) 704 — Total Segments 665 221 135 181 23 30,257 332 Unallocated 6 (70) 43 — — 1,628 2 Timing (3) 2 — — — 18 — Methodology — 46 (58) — — 278 — Inter-segment Eliminations (1) — — — — — (224) — Total $ 668 $ 199 $ 120 $ 181 $ 23 $ 31,957 $ 334 (1) Elimination is primarily related to intercompany loans Supplemental segment data and reconciliations to consolidated external reporting for the six months ended June 30 was as follows: (Millions of dollars) 2023 External Profit Interest Depreciation Provision Assets at Capital North America $ 854 $ 303 $ 203 $ 250 $ 7 $ 15,777 $ 515 EAME 172 44 46 29 2 5,100 36 Asia/Pacific 143 67 46 2 (4) 3,787 2 Latin America 169 66 84 6 (15) 2,834 10 Mining 167 59 33 62 (7) 2,879 119 Power 28 4 12 1 5 650 — Total Segments 1,533 543 424 350 (12) 31,027 682 Unallocated 35 (241) 171 — — 1,941 6 Timing (7) — — — — 19 — Methodology — 107 (133) — — 211 — Inter-segment Eliminations (1) — — — — — (176) — Total $ 1,561 $ 409 $ 462 $ 350 $ (12) $ 33,022 $ 688 2022 External Profit Interest Depreciation Provision Assets at Capital North America $ 729 $ 261 $ 112 $ 255 $ 16 $ 15,229 $ 447 EAME 135 5 18 28 42 5,067 56 Asia/Pacific 146 71 36 3 4 3,921 3 Latin America 129 34 61 4 5 2,636 18 Mining 146 45 18 74 (10) 2,700 47 Power 30 23 5 1 (7) 704 — Total Segments 1,315 439 250 365 50 30,257 571 Unallocated 11 (142) 85 — — 1,628 4 Timing (6) 3 — — — 18 — Methodology — 92 (109) — — 278 — Inter-segment Eliminations (1) — — — — — (224) — Total $ 1,320 $ 392 $ 226 $ 365 $ 50 $ 31,957 $ 575 (1) Elimination is primarily related to intercompany loans

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair values of financial instruments	Financial instruments not carried at fair value were as follows: (Millions of dollars) June 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Fair Reference Assets Finance receivables, net (excluding finance leases (1) ) $ 20,217 $ 19,535 $ 19,085 $ 18,448 3 Note 3 Liabilities Long-term debt $ 22,573 $ 21,963 $ 21,418 $ 20,686 2 (1) Represents finance leases and failed sale leasebacks of $7.16 billion and $7.36 billion as of June 30, 2023 and December 31, 2022, respectively.

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	$ 27,694		$ 26,787	$ 26,739
Less: Allowance for credit losses	(320)	$ (348)	(346)	$ (376)	$ (357)	$ (337)
Financing Receivable, after Allowance for Credit Loss, Total	27,374		26,441
Retail loans
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	15,403		14,973
Retail leases
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	6,714		6,965
Caterpillar Purchased Receivables
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	4,748		4,297
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	823		545
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Total Finance Receivables	$ 6		$ 7

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Receivables [Abstract]
Finance lease revenue (included in retail and wholesale finance revenue)	$ 104	$ 109	$ 208	$ 221

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Allowance for Credit Losses
Beginning Balance	$ 348	$ 357	$ 346	$ 337
Write-offs	(21)	(18)	(41)	(38)
Recoveries	13	18	23	30
Financing Receivable, Credit Loss, Expense (Reversal)	(21)	22	(10)	48
Financing Receivable, Allowance for Credit Losses, Other	1	(3)	2	(1)
Ending Balance	320	376	320	376
Customer
Financing Receivable, Allowance for Credit Losses
Beginning Balance	278	271	277	251
Write-offs	(21)	(18)	(41)	(38)
Recoveries	13	18	23	30
Financing Receivable, Credit Loss, Expense (Reversal)	(6)	22	4	48
Financing Receivable, Allowance for Credit Losses, Other	1	(3)	2	(1)
Ending Balance	265	290	265	290
Dealer
Financing Receivable, Allowance for Credit Losses
Beginning Balance	65	81	65	82
Write-offs	0	0	0	0
Recoveries	0	0	0	0
Financing Receivable, Credit Loss, Expense (Reversal)	(15)	1	(15)	0
Financing Receivable, Allowance for Credit Losses, Other	0	0	0	0
Ending Balance	50	82	50	82
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Beginning Balance	5	5	4	4
Write-offs	0	0	0	0
Recoveries	0	0	0	0
Financing Receivable, Credit Loss, Expense (Reversal)	0	(1)	1	0
Financing Receivable, Allowance for Credit Losses, Other	0	0	0	0
Ending Balance	$ 5	$ 4	$ 5	$ 4

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	$ 27,694	$ 26,787	$ 26,739
Customer
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	4,394	8,180
2022 and 2021, respectively	6,901	6,296
2021 and 2020, respectively	4,921	3,015
2020 and 2019, respectively	2,118	1,409
2019 and 2018, respectively	922	549
Prior	545	408
Revolving Finance Receivables	524	496
Total Finance Receivables	20,325	20,353	20,483
Customer | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	4,370	8,086
2022 and 2021, respectively	6,715	6,148
2021 and 2020, respectively	4,747	2,918
2020 and 2019, respectively	2,039	1,370
2019 and 2018, respectively	882	536
Prior	511	396
Revolving Finance Receivables	518	485
Total Finance Receivables	19,782	19,939
Customer | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	18	52
2022 and 2021, respectively	105	59
2021 and 2020, respectively	85	37
2020 and 2019, respectively	29	16
2019 and 2018, respectively	16	6
Prior	3	2
Revolving Finance Receivables	3	4
Total Finance Receivables	259	176
Customer | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	4	21
2022 and 2021, respectively	27	29
2021 and 2020, respectively	24	15
2020 and 2019, respectively	15	7
2019 and 2018, respectively	6	1
Prior	1	0
Revolving Finance Receivables	1	3
Total Finance Receivables	78	76
Customer | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	2	21
2022 and 2021, respectively	54	60
2021 and 2020, respectively	65	45
2020 and 2019, respectively	35	16
2019 and 2018, respectively	18	6
Prior	30	10
Revolving Finance Receivables	2	4
Total Finance Receivables	206	162
Customer | North America | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	2,056	3,915
2022 and 2021, respectively	3,251	3,276
2021 and 2020, respectively	2,610	1,525
2020 and 2019, respectively	1,104	653
2019 and 2018, respectively	407	206
Prior	109	34
Revolving Finance Receivables	285	240
Total Finance Receivables	9,822	9,849
Customer | North America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	13	25
2022 and 2021, respectively	31	26
2021 and 2020, respectively	24	18
2020 and 2019, respectively	15	12
2019 and 2018, respectively	10	4
Prior	2	1
Revolving Finance Receivables	3	4
Total Finance Receivables	98	90
Customer | North America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	3	9
2022 and 2021, respectively	13	15
2021 and 2020, respectively	10	7
2020 and 2019, respectively	6	3
2019 and 2018, respectively	2	1
Prior	1	0
Revolving Finance Receivables	1	3
Total Finance Receivables	36	38
Customer | North America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	1	11
2022 and 2021, respectively	16	16
2021 and 2020, respectively	20	12
2020 and 2019, respectively	11	6
2019 and 2018, respectively	5	4
Prior	4	3
Revolving Finance Receivables	2	4
Total Finance Receivables	59	56
Customer | EAME | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	623	1,270
2022 and 2021, respectively	1,091	953
2021 and 2020, respectively	757	477
2020 and 2019, respectively	361	280
2019 and 2018, respectively	190	155
Prior	155	68
Revolving Finance Receivables	0	0
Total Finance Receivables	3,177	3,203
Customer | EAME | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	3	10
2022 and 2021, respectively	8	12
2021 and 2020, respectively	11	7
2020 and 2019, respectively	4	1
2019 and 2018, respectively	1	1
Prior	1	0
Revolving Finance Receivables	0	0
Total Finance Receivables	28	31
Customer | EAME | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	1	8
2022 and 2021, respectively	5	4
2021 and 2020, respectively	6	3
2020 and 2019, respectively	3	1
2019 and 2018, respectively	2	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	17	16
Customer | EAME | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	6
2022 and 2021, respectively	16	25
2021 and 2020, respectively	18	16
2020 and 2019, respectively	11	4
2019 and 2018, respectively	3	1
Prior	1	1
Revolving Finance Receivables	0	0
Total Finance Receivables	49	53
Customer | Asia/Pacific | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	613	1,174
2022 and 2021, respectively	882	805
2021 and 2020, respectively	543	393
2020 and 2019, respectively	211	124
2019 and 2018, respectively	67	37
Prior	19	5
Revolving Finance Receivables	41	40
Total Finance Receivables	2,376	2,578
Customer | Asia/Pacific | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	10
2022 and 2021, respectively	8	12
2021 and 2020, respectively	11	8
2020 and 2019, respectively	7	1
2019 and 2018, respectively	1	1
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	27	32
Customer | Asia/Pacific | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	2
2022 and 2021, respectively	4	5
2021 and 2020, respectively	5	4
2020 and 2019, respectively	2	2
2019 and 2018, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	12	13
Customer | Asia/Pacific | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	1	2
2022 and 2021, respectively	4	6
2021 and 2020, respectively	5	6
2020 and 2019, respectively	4	4
2019 and 2018, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	15	18
Customer | Mining | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	659	875
2022 and 2021, respectively	759	627
2021 and 2020, respectively	457	227
2020 and 2019, respectively	175	193
2019 and 2018, respectively	133	94
Prior	70	108
Revolving Finance Receivables	38	80
Total Finance Receivables	2,291	2,204
Customer | Mining | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	42	1
2021 and 2020, respectively	32	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	74	1
Customer | Mining | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	0	0
Customer | Mining | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	2	0
2021 and 2020, respectively	1	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	0	1
Revolving Finance Receivables	0	0
Total Finance Receivables	3	1
Customer | Latin America | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	389	770
2022 and 2021, respectively	658	400
2021 and 2020, respectively	305	150
2020 and 2019, respectively	99	69
2019 and 2018, respectively	38	26
Prior	13	20
Revolving Finance Receivables	0	0
Total Finance Receivables	1,502	1,435
Customer | Latin America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	2	7
2022 and 2021, respectively	16	8
2021 and 2020, respectively	7	4
2020 and 2019, respectively	3	2
2019 and 2018, respectively	4	0
Prior	0	1
Revolving Finance Receivables	0	0
Total Finance Receivables	32	22
Customer | Latin America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	2
2022 and 2021, respectively	5	5
2021 and 2020, respectively	3	1
2020 and 2019, respectively	4	1
2019 and 2018, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	13	9
Customer | Latin America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	2
2022 and 2021, respectively	16	13
2021 and 2020, respectively	21	11
2020 and 2019, respectively	9	2
2019 and 2018, respectively	9	1
Prior	22	0
Revolving Finance Receivables	0	0
Total Finance Receivables	77	29
Customer | Power | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	30	82
2022 and 2021, respectively	74	87
2021 and 2020, respectively	75	146
2020 and 2019, respectively	89	51
2019 and 2018, respectively	47	18
Prior	145	161
Revolving Finance Receivables	154	125
Total Finance Receivables	614	670
Customer | Power | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	0	0
Customer | Power | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Total Finance Receivables	0	0
Customer | Power | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	3	5
Revolving Finance Receivables	0	0
Total Finance Receivables	3	5
Dealer
Financing Receivable, Credit Quality Indicator
Total Finance Receivables	2,621		$ 2,277
Dealer | Total past due
Financing Receivable, Credit Quality Indicator
Prior	$ 47	$ 62

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Financing Receivable, Past Due
Total Finance Receivables	$ 27,694	$ 26,787	$ 26,739
Caterpillar Purchased Receivables
Financing Receivable, Past Due
Total Finance Receivables	4,748	4,297	$ 3,979
Caterpillar Purchased Receivables | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	18	28
Caterpillar Purchased Receivables | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	11	11
Caterpillar Purchased Receivables | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	18	22
Caterpillar Purchased Receivables | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	47	61
Caterpillar Purchased Receivables | Current
Financing Receivable, Past Due
Total Finance Receivables	4,701	4,236
Caterpillar Purchased Receivables | North America
Financing Receivable, Past Due
Total Finance Receivables	2,786	2,480
Caterpillar Purchased Receivables | North America | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	8	11
Caterpillar Purchased Receivables | North America | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	4	7
Caterpillar Purchased Receivables | North America | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	4	4
Caterpillar Purchased Receivables | North America | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	16	22
Caterpillar Purchased Receivables | North America | Current
Financing Receivable, Past Due
Total Finance Receivables	2,770	2,458
Caterpillar Purchased Receivables | EAME
Financing Receivable, Past Due
Total Finance Receivables	879	815
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	1	0
Caterpillar Purchased Receivables | EAME | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	1	2
Caterpillar Purchased Receivables | EAME | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	3	3
Caterpillar Purchased Receivables | EAME | Current
Financing Receivable, Past Due
Total Finance Receivables	876	812
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Past Due
Total Finance Receivables	620	565
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	1	6
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	0	2
Caterpillar Purchased Receivables | Asia/Pacific | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	0	2
Caterpillar Purchased Receivables | Asia/Pacific | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	1	10
Caterpillar Purchased Receivables | Asia/Pacific | Current
Financing Receivable, Past Due
Total Finance Receivables	619	555
Caterpillar Purchased Receivables | Latin America
Financing Receivable, Past Due
Total Finance Receivables	450	431
Caterpillar Purchased Receivables | Latin America | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	7	9
Caterpillar Purchased Receivables | Latin America | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	6	2
Caterpillar Purchased Receivables | Latin America | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	12	14
Caterpillar Purchased Receivables | Latin America | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	25	25
Caterpillar Purchased Receivables | Latin America | Current
Financing Receivable, Past Due
Total Finance Receivables	425	406
Caterpillar Purchased Receivables | Power
Financing Receivable, Past Due
Total Finance Receivables	13	6
Caterpillar Purchased Receivables | Power | 31-60 days past due
Financing Receivable, Past Due
Total Finance Receivables	1	1
Caterpillar Purchased Receivables | Power | 61-90 days past due
Financing Receivable, Past Due
Total Finance Receivables	0	0
Caterpillar Purchased Receivables | Power | 91+ days past due
Financing Receivable, Past Due
Total Finance Receivables	1	0
Caterpillar Purchased Receivables | Power | Total Past Due
Financing Receivable, Past Due
Total Finance Receivables	2	1
Caterpillar Purchased Receivables | Power | Current
Financing Receivable, Past Due
Total Finance Receivables	$ 11	$ 5

Finance Receivables (Details 6)

Finance Receivables (Details 6) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
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	$ 206	$ 156
Amortized Cost, Non-accrual Without an Allowance	0	16
Amortized Cost, 91+ Still Accruing	27	28
Customer | North America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	54	52
Amortized Cost, Non-accrual Without an Allowance	0	4
Amortized Cost, 91+ Still Accruing	15	11
Customer | EAME
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	44	43
Amortized Cost, Non-accrual Without an Allowance	0	0
Amortized Cost, 91+ Still Accruing	7	10
Customer | Asia/Pacific
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	10	11
Amortized Cost, Non-accrual Without an Allowance	0	0
Amortized Cost, 91+ Still Accruing	5	7
Customer | Mining
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	3	0
Amortized Cost, Non-accrual Without an Allowance	0	1
Amortized Cost, 91+ Still Accruing	0	0
Customer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	85	45
Amortized Cost, Non-accrual Without an Allowance	0	0
Amortized Cost, 91+ Still Accruing	0	0
Customer | Power
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	10	5
Amortized Cost, Non-accrual Without an Allowance	0	11
Amortized Cost, 91+ Still Accruing	0	0
Dealer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	$ 47	$ 62

Finance Receivables (Details 7)

Finance Receivables (Details 7) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023 contracts	Jun. 30, 2022 USD ($) contracts	Jun. 30, 2023 contracts	Jun. 30, 2022 USD ($) contracts
Customer
Finance receivables modified as TDRs
Pre-TDR Amortized Cost		$ 4		$ 11
Post-TDR Amortized Cost		3		10
Customer | North America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost		1		1
Post-TDR Amortized Cost		1		1
Customer | EAME
Finance receivables modified as TDRs
Pre-TDR Amortized Cost				1
Post-TDR Amortized Cost				1
Customer | Mining
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost				5
Customer | Power
Finance receivables modified as TDRs
Pre-TDR Amortized Cost		3		9
Post-TDR Amortized Cost		$ 2		$ 8
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

Finance Receivables (Details 8)

Finance Receivables (Details 8) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Write-offs by origination year [Line Items]
Financing Receivable, Allowance for Credit Loss, Writeoff	$ 21	$ 18	$ 41	$ 38
Customer
Write-offs by origination year [Line Items]
Write-off, Year One, Originated, Current Fiscal Year	0		0
Write-off, Year Two, Originated, Fiscal Year before Current Fiscal Year	5		9
Write-off, Year Three, Originated, Two Years before Current Fiscal Year	6		12
Write-off, Year Four, Originated, Three Years before Current Fiscal	4		8
Write-off, Year Five, Originated, Four Years before Current Fiscal Year	1		3
Write-off, Originated, More than Five Years before Current Fiscal Year	2		2
Write-off, Revolving	3		7
Financing Receivable, Allowance for Credit Loss, Writeoff	21	$ 18	41	$ 38
Customer | North America
Write-offs by origination year [Line Items]
Write-off, Year One, Originated, Current Fiscal Year	0		0
Write-off, Year Two, Originated, Fiscal Year before Current Fiscal Year	2		5
Write-off, Year Three, Originated, Two Years before Current Fiscal Year	2		5
Write-off, Year Four, Originated, Three Years before Current Fiscal	1		1
Write-off, Year Five, Originated, Four Years before Current Fiscal Year	1		1
Write-off, Originated, More than Five Years before Current Fiscal Year	1		1
Write-off, Revolving	3		7
Financing Receivable, Allowance for Credit Loss, Writeoff	10		20
Customer | EAME
Write-offs by origination year [Line Items]
Write-off, Year One, Originated, Current Fiscal Year	0		0
Write-off, Year Two, Originated, Fiscal Year before Current Fiscal Year	0		1
Write-off, Year Three, Originated, Two Years before Current Fiscal Year	2		2
Write-off, Year Four, Originated, Three Years before Current Fiscal	1		2
Write-off, Year Five, Originated, Four Years before Current Fiscal Year	0		0
Write-off, Originated, More than Five Years before Current Fiscal Year	1		1
Write-off, Revolving	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	4		6
Customer | Asia/Pacific
Write-offs by origination year [Line Items]
Write-off, Year One, Originated, Current Fiscal Year	0		0
Write-off, Year Two, Originated, Fiscal Year before Current Fiscal Year	1		1
Write-off, Year Three, Originated, Two Years before Current Fiscal Year	1		3
Write-off, Year Four, Originated, Three Years before Current Fiscal	2		3
Write-off, Year Five, Originated, Four Years before Current Fiscal Year	0		1
Write-off, Originated, More than Five Years before Current Fiscal Year	0		0
Write-off, Revolving	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	4		8
Customer | Latin America
Write-offs by origination year [Line Items]
Write-off, Year One, Originated, Current Fiscal Year	0		0
Write-off, Year Two, Originated, Fiscal Year before Current Fiscal Year	2		2
Write-off, Year Three, Originated, Two Years before Current Fiscal Year	1		2
Write-off, Year Four, Originated, Three Years before Current Fiscal	0		2
Write-off, Year Five, Originated, Four Years before Current Fiscal Year	0		1
Write-off, Originated, More than Five Years before Current Fiscal Year	0		0
Write-off, Revolving	0		0
Financing Receivable, Allowance for Credit Loss, Writeoff	$ 3		$ 7

Finance Receivables (Details 9)

Finance Receivables (Details 9) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)
Dealer
modifications [Abstract]
Financing Receivable, Modified Period	$ 0	$ 0
Caterpillar Purchased Receivables
modifications [Abstract]
Financing Receivable, Modified Period	$ 0	$ 0
Customer
modifications [Abstract]
Financing Receivable, Modified, Weighted Average Term Increase from Modification	18 months	21 months
Financing Receivable, Modified, Weighted Average Payment Delay	7 months	8 months
Financing Receivable, Modification To Total Financing Receivables, Percent	0.08%	0.11%
Financing Receivable, Modified Period	$ 22	$ 30
EAME | 31-60 days past due | Customer
modifications [Abstract]
Financing Receivable, Modified, Accumulated	$ 1	$ 1

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value
Derivative assets	$ 354	$ 417
Derivative liabilities	(219)	(199)
Designated derivatives | Other assets
Derivatives, Fair Value
Derivative assets	323	392
Designated derivatives | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	(168)	(157)
Designated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Derivative assets	258	305
Designated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	(60)	(44)
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Derivative assets	65	87
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	(108)	(113)
Undesignated derivatives | Other assets
Derivatives, Fair Value
Derivative assets	31	25
Undesignated derivatives | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	(51)	(42)
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Derivative assets	31	25
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Derivative liabilities	$ (51)	$ (42)

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivative
Derivative instruments, notional amount	$ 12,780	$ 13,180

Derivative Financial Instrume_5

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized in AOCI	$ 30	$ 342	$ (5)	$ 371
Gains (Losses) Reclassified from AOCI	(32)	(335)	4	(345)
Undesignated derivatives | Fair Value Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized on Undesignated Hedges	15	40	(34)	(33)
Undesignated derivatives | Fair Value Hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized on Undesignated Hedges	33	37	(1)	(42)
Undesignated derivatives | Fair Value Hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized on Undesignated Hedges	(18)	3	(33)	9
Designated derivatives | Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized in AOCI	30	342	(5)	371
Gains (Losses) Reclassified from AOCI	32	335	(4)	345
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized in AOCI	16	321	(17)	294
Gains (Losses) Reclassified from AOCI	18	337	(32)	353
Designated derivatives | Cash Flow Hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Gains (Losses) Recognized in AOCI	14	21	12	77
Gains (Losses) Reclassified from AOCI	$ 14	$ (2)	$ 28	$ (8)

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	$ 2,147	$ 2,091
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	(107)	(112)
Current maturities of long-term debt
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	195	0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	(5)	0
Long-term debt
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	1,952	2,091
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	$ (102)	$ (112)

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) $ in Millions	6 Months Ended
	Jun. 30, 2023 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	$ 31

Derivative Financial Instrume_8

Derivative Financial Instruments and Risk Management (Details 6) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Assets, Gross amounts recognized	$ 354	$ 417
Assets, Financial instruments not offset	(103)	(108)
Assets, Net amount	251	309
Liabilities, Gross amounts recognized	(219)	(199)
Liabilities, Financial instruments not offset	103	108
Liabilities, Net amount	$ (116)	$ (91)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (1,026)	$ (754)	$ (1,068)	$ (762)
Gains (losses) on foreign currency translation	(33)	(217)	0	(198)
Less: Tax provision/(benefit)	0	31	(9)	42
Net gains (losses) on foreign currency translation	(33)	(248)	9	(240)
Other comprehensive income (loss), net of tax	(33)	(248)	9	(240)
Balance at end of period	(1,059)	(1,002)	(1,059)	(1,002)
Balance at beginning of period	22	4	21	(12)
Gains (losses) deferred	30	342	(5)	371
Less: Tax provision/(benefit)	7	57	(2)	63
Net gains (losses) deferred	23	285	(3)	308
(Gains) losses reclassified to earnings	(32)	(335)	4	(345)
Less: Tax (provision)/benefit	(8)	(57)	1	(60)
Net (gains) losses reclassified to earnings	(24)	(278)	3	(285)
Other comprehensive income (loss), net of tax	(1)	7	0	23
Balance at end of period	21	11	21	11
Total Accumulated other comprehensive income (loss) at end of period	$ (1,038)	$ (991)	$ (1,038)	$ (991)	$ (1,047)

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Segment Reporting Information
External Revenues	$ 793	$ 668	$ 1,561	$ 1,320
Profit before income taxes	205	199	409	392
Interest Expense	245	120	462	226
Depreciation on equipment leased to others	176	181	350	365
Provision for credit losses	(21)	23	(12)	50
Assets	33,022		33,022		$ 31,957
Capital expenditures	410	334	688	575
Operating Segments
Segment Reporting Information
External Revenues	777	665	1,533	1,315
Profit before income taxes	276	221	543	439
Interest Expense	224	135	424	250
Depreciation on equipment leased to others	176	181	350	365
Provision for credit losses	(21)	23	(12)	50
Assets	31,027		31,027		30,257
Capital expenditures	409	332	682	571
Unallocated
Segment Reporting Information
External Revenues	20	6	35	11
Profit before income taxes	(131)	(70)	(241)	(142)
Interest Expense	95	43	171	85
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	1,941		1,941		1,628
Capital expenditures	1	2	6	4
Segment Reconciling Items | Timing
Segment Reporting Information
External Revenues	(4)	(3)	(7)	(6)
Profit before income taxes	0	2	0	3
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	19		19		18
Capital expenditures	0	0	0	0
Segment Reconciling Items | Methodology
Segment Reporting Information
External Revenues	0	0	0	0
Profit before income taxes	60	46	107	92
Interest Expense	(74)	(58)	(133)	(109)
Depreciation on equipment leased to others	0	0	0	0
Provision for credit losses	0	0	0	0
Assets	211		211		278
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	(176)		(176)		(224)
Capital expenditures	0	0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	436	370	854	729
Profit before income taxes	154	134	303	261
Interest Expense	108	58	203	112
Depreciation on equipment leased to others	127	127	250	255
Provision for credit losses	2	10	7	16
Assets	15,777		15,777		15,229
Capital expenditures	293	248	515	447
EAME | Operating Segments
Segment Reporting Information
External Revenues	88	68	172	135
Profit before income taxes	18	5	44	5
Interest Expense	25	11	46	18
Depreciation on equipment leased to others	15	14	29	28
Provision for credit losses	2	16	2	42
Assets	5,100		5,100		5,067
Capital expenditures	12	42	36	56
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	73	71	143	146
Profit before income taxes	33	34	67	71
Interest Expense	23	19	46	36
Depreciation on equipment leased to others	1	2	2	3
Provision for credit losses	(3)	3	(4)	4
Assets	3,787		3,787		3,921
Capital expenditures	1	1	2	3
Latin America | Operating Segments
Segment Reporting Information
External Revenues	87	71	169	129
Profit before income taxes	47	15	66	34
Interest Expense	44	35	84	61
Depreciation on equipment leased to others	3	2	6	4
Provision for credit losses	(21)	6	(15)	5
Assets	2,834		2,834		2,636
Capital expenditures	7	16	10	18
Mining | Operating Segments
Segment Reporting Information
External Revenues	79	74	167	146
Profit before income taxes	25	25	59	45
Interest Expense	18	10	33	18
Depreciation on equipment leased to others	30	36	62	74
Provision for credit losses	(6)	(8)	(7)	(10)
Assets	2,879		2,879		2,700
Capital expenditures	96	25	119	47
Power | Operating Segments
Segment Reporting Information
External Revenues	14	11	28	30
Profit before income taxes	(1)	8	4	23
Interest Expense	6	2	12	5
Depreciation on equipment leased to others	0	0	1	1
Provision for credit losses	5	(4)	5	(7)
Assets	650		650		$ 704
Capital expenditures	$ 0	$ 0	$ 0	$ 0

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 20	$ 26
Total assets	33,022	31,957
Liabilities	29,827	28,994
Maximum
Guarantor Obligations
Related recorded liability	1	1
Variable interest entity, primary beneficiary
Guarantor Obligations
Total assets	1,240	971
Liabilities	$ 1,240	$ 970

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Recurring basis | Fair Value, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative financial instruments, net asset position	$ 135	$ 218

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Loans carried at fair value	$ 58	$ 68

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Level 2
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Long-term debt	$ 21,963	$ 20,686
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	19,535	18,448
Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,217	19,085
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Long-term debt	22,573	21,418
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	$ 7,160	$ 7,360

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Estimated annual tax rate	26%	26%