Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Three Months Ended June 30,

(Millions of dollars)



	2012
	External sales and revenues		Inter- segment sales & revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at June 30		Capital expenditures
Construction Industries	$	5,340	$	123	$	5,463	$	139	$	688	$	9,771	$	219
Resource Industries	5,390		328		5,718		168		1,426		13,499		242
Power Systems	5,511		680		6,191		147		982		9,496		237
Machinery and Power Systems	$	16,241	$	1,131	$	17,372	$	454	$	3,096	$	32,766	$	698
Financial Products Segment	764		—		764		177		188		34,451		457
Total	$	17,005	$	1,131	$	18,136	$	631	$	3,284	$	67,217	$	1,155

	2011
	External sales and revenues		Inter- segment sales & revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at December 31		Capital expenditures
Construction Industries	$	4,941	$	124	$	5,065	$	126	$	482	$	7,942	$	158
Resource Industries	3,206		284		3,490		72		796		12,292		105
Power Systems	4,918		541		5,459		129		736		8,748		132
Machinery and Power Systems	$	13,065	$	949	$	14,014	$	327	$	2,014	$	28,982	$	395
Financial Products Segment	764		—		764		182		172		31,747		339
Total	$	13,829	$	949	$	14,778	$	509	$	2,186	$	60,729	$	734

Reportable Segments

Six Months Ended June 30,

(Millions of dollars)



	2012
	External sales and revenues		Inter- segment sales & revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at June 30		Capital expenditures
Construction Industries	$	10,402	$	253	$	10,655	$	270	$	1,304	$	9,771	$	350
Resource Industries	10,168		656		10,824		331		2,594		13,499		374
Power Systems	10,498		1,355		11,853		285		1,794		9,496		366
Machinery and Power Systems	$	31,068	$	2,264	$	33,332	$	886	$	5,692	$	32,766	$	1,090
Financial Products Segment	1,525		—		1,525		351		393		34,451		800
Total	$	32,593	$	2,264	$	34,857	$	1,237	$	6,085	$	67,217	$	1,890

	2011
	External sales and revenues		Inter- segment sales & revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at December 31		Capital expenditures
Construction Industries	$	9,412	$	271	$	9,683	$	246	$	1,026	$	7,942	$	237
Resource Industries	5,974		558		6,532		143		1,592		12,292		161
Power Systems	9,367		1,095		10,462		265		1,436		8,748		217
Machinery and Power Systems	$	24,753	$	1,924	$	26,677	$	654	$	4,054	$	28,982	$	615
Financial Products Segment	1,494		—		1,494		358		308		31,747		519
Total	$	26,247	$	1,924	$	28,171	$	1,012	$	4,362	$	60,729	$	1,134

Reconciliation of Sales and revenues:



Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery and Power Systems			Financial Products		Consolidating Adjustments				Consolidated Total
Three Months Ended June 30, 2012
Total external sales and revenues from reportable segments	$	16,241		$	764	$	—			$	17,005
All Other operating segment	454			—		—				454
Other	(11		)	16		(90		)	¹	(85		)
Total sales and revenues	$	16,684		$	780	$	(90	)		$	17,374

Three Months Ended June 30, 2011
Total external sales and revenues from reportable segments	$	13,065		$	764	$	—			$	13,829
All Other operating segment	475			—		—				475
Other	(5		)	13		(82		)	¹	(74		)
Total sales and revenues	$	13,535		$	777	$	(82	)		$	14,230
¹ Elimination of Financial Products revenues from Machinery and Power Systems.



Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery and Power Systems			Financial Products		Consolidating Adjustments				Consolidated Total
Six Months Ended June 30, 2012
Total external sales and revenues from reportable segments	$	31,068		$	1,525	$	—			$	32,593
All Other operating segment	928			—		—				928
Other	(24		)	32		(174		)	¹	(166		)
Total sales and revenues	$	31,972		$	1,557	$	(174	)		$	33,355

Six Months Ended June 30, 2011
Total external sales and revenues from reportable segments	$	24,753		$	1,494	$	—			$	26,247
All Other operating segment	1,064			—		—				1,064
Other	(5		)	23		(150		)	¹	(132		)
Total sales and revenues	$	25,812		$	1,517	$	(150	)		$	27,179
¹ Elimination of Financial Products revenues from Machinery and Power Systems.

Reconciliation of profit (loss) before taxes:



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery and Power Systems			Financial Products			Consolidated Total
Three Months Ended June 30, 2012
Total profit from reportable segments	$	3,096		$	188		$	3,284
All Other operating segment	188			—			188
Cost centers	(11		)	—			(11		)
Corporate costs	(400		)	—			(400		)
Timing	(137		)	—			(137		)
Methodology differences:
Inventory/cost of sales	(21		)	—			(21		)
Postretirement benefit expense	(145		)	—			(145		)
Financing costs	(112		)	—			(112		)
Equity in profit of unconsolidated affiliated companies	(5		)	—			(5		)
Currency	9			—			9
Other income/expense methodology differences	(74		)	—			(74		)
Other methodology differences	4			(4		)	—
Total profit before taxes	$	2,392		$	184		$	2,576

Three Months Ended June 30, 2011
Total profit from reportable segments	$	2,014		$	172		$	2,186
All Other operating segment	122			—			122
Cost centers	(20		)	—			(20		)
Corporate costs	(300		)	—			(300		)
Timing	(93		)	—			(93		)
Methodology differences:
Inventory/cost of sales	16			—			16
Postretirement benefit expense	(166		)	—			(166		)
Financing costs	(89		)	—			(89		)
Equity in profit of unconsolidated affiliated companies	10			—			10
Currency	(93		)	—			(93		)
Interest rate swaps	(124		)	—			(124		)
Other income/expense methodology differences	(97		)	—			(97		)
Other methodology differences	(3		)	1			(2		)
Total profit before taxes	$	1,177		$	173		$	1,350



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery and Power Systems			Financial Products			Consolidated Total
Six Months Ended June 30, 2012
Total profit from reportable segments	$	5,692		$	393		$	6,085
All Other operating segment	406			—			406
Cost centers	23			—			23
Corporate costs	(760		)	—			(760		)
Timing	(288		)	—			(288		)
Methodology differences:
Inventory/cost of sales	(35		)	—			(35		)
Postretirement benefit expense	(331		)	—			(331		)
Financing costs	(227		)	—			(227		)
Equity in profit of unconsolidated affiliated companies	(7		)	—			(7		)
Currency	140			—			140
Other income/expense methodology differences	(135		)	—			(135		)
Other methodology differences	6			(3		)	3
Total profit before taxes	$	4,484		$	390		$	4,874

Six Months Ended June 30, 2011
Total profit from reportable segments	$	4,054		$	308		$	4,362
All Other operating segment	367			—			367
Cost centers	1			—			1
Corporate costs	(571		)	—			(571		)
Timing	(169		)	—			(169		)
Methodology differences:
Inventory/cost of sales	22			—			22
Postretirement benefit expense	(358		)	—			(358		)
Financing costs	(178		)	—			(178		)
Equity in profit of unconsolidated affiliated companies	18			—			18
Currency	(75		)	—			(75		)
Interest rate swaps	(149		)	—			(149		)
Other income/expense methodology differences	(156		)	—			(156		)
Other methodology differences	(4		)	3			(1		)
Total profit before taxes	$	2,802		$	311		$	3,113

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery and Power Systems			Financial Products			Consolidating Adjustments			Consolidated Total
June 30, 2012
Total assets from reportable segments	$	32,766		$	34,451		$	—		$	67,217
All Other operating segment	2,029			—			—			2,029
Items not included in segment assets:
Cash and short-term investments	2,810			—			—			2,810
Intercompany receivables	54			—			(54		)	—
Investment in Financial Products	4,011			—			(4,011		)	—
Deferred income taxes	4,107			—			(542		)	3,565
Goodwill, intangible assets and other assets	3,988			—			—			3,988
Operating lease methodology difference	(549		)	—			—			(549		)
Liabilities included in segment assets	13,061			—			—			13,061
Inventory methodology differences	(3,164		)	—			—			(3,164		)
Other	96			(137		)	(78		)	(119		)
Total assets	$	59,209		$	34,314		$	(4,685	)	$	88,838

December 31, 2011
Total assets from reportable segments	$	28,982		$	31,747		$	—		$	60,729
All Other operating segment	2,035			—			—			2,035
Items not included in segment assets:
Cash and short-term investments	1,829			—			—			1,829
Intercompany receivables	75			—			(75		)	—
Investment in Financial Products	4,035			—			(4,035		)	—
Deferred income taxes	4,109			—			(533		)	3,576
Goodwill, intangible assets and other assets	4,461			—			—			4,461
Operating lease methodology difference	(511		)	—			—			(511		)
Liabilities included in segment assets	12,088			—			—			12,088
Inventory methodology differences	(2,786		)	—			—			(2,786		)
Other	362			(194		)	(143		)	25
Total assets	$	54,679		$	31,553		$	(4,786	)	$	81,446

Reconciliation of Depreciation and amortization:



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery and Power Systems			Financial Products		Consolidating Adjustments		Consolidated Total
Three Months Ended June 30, 2012
Total depreciation and amortization from reportable segments	$	454		$	177	$	—	$	631
Items not included in segment depreciation and amortization:
All Other operating segment	41			—		—		41
Cost centers	22			—		—		22
Other	(11		)	6		—		(5		)
Total depreciation and amortization	$	506		$	183	$	—	$	689

Three Months Ended June 30, 2011
Total depreciation and amortization from reportable segments	$	327		$	182	$	—	$	509
Items not included in segment depreciation and amortization:
All Other operating segment	41			—		—		41
Cost centers	19			—		—		19
Other	28			2		—		30
Total depreciation and amortization	$	415		$	184	$	—	$	599



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery and Power Systems			Financial Products		Consolidating Adjustments		Consolidated Total
Six Months Ended June 30, 2012
Total depreciation and amortization from reportable segments	$	886		$	351	$	—	$	1,237
Items not included in segment depreciation and amortization:
All Other operating segment	84			—		—		84
Cost centers	41			—		—		41
Other	(23		)	11		—		(12		)
Total depreciation and amortization	$	988		$	362	$	—	$	1,350

Six Months Ended June 30, 2011
Total depreciation and amortization from reportable segments	$	654		$	358	$	—	$	1,012
Items not included in segment depreciation and amortization:
All Other operating segment	86			—		—		86
Cost centers	37			—		—		37
Other	33			6		—		39
Total depreciation and amortization	$	810		$	364	$	—	$	1,174

Reconciliation of Capital expenditures:



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery and Power Systems			Financial Products		Consolidating Adjustments			Consolidated Total
Three Months Ended June 30, 2012
Total capital expenditures from reportable segments	$	698		$	457	$	—		$	1,155
Items not included in segment capital expenditures:
All Other operating segment	90			—		—			90
Cost centers	65			—		—			65
Timing	(81		)	—		—			(81		)
Other	(91		)	57		(29		)	(63		)
Total capital expenditures	$	681		$	514	$	(29	)	$	1,166

Three Months Ended June 30, 2011
Total capital expenditures from reportable segments	$	395		$	339	$	—		$	734
Items not included in segment capital expenditures:
All Other operating segment	51			—		—			51
Cost centers	19			—		—			19
Timing	(74		)	—		—			(74		)
Other	16			22		(24		)	14
Total capital expenditures	$	407		$	361	$	(24	)	$	744



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery and Power Systems			Financial Products		Consolidating Adjustments			Consolidated Total
Six Months Ended June 30, 2012
Total capital expenditures from reportable segments	$	1,090		$	800	$	—		$	1,890
Items not included in segment capital expenditures:
All Other operating segment	154			—		—			154
Cost centers	103			—		—			103
Timing	321			—		—			321
Other	(123		)	74		(124		)	(173		)
Total capital expenditures	$	1,545		$	874	$	(124	)	$	2,295

Six Months Ended June 30, 2011
Total capital expenditures from reportable segments	$	615		$	519	$	—		$	1,134
Items not included in segment capital expenditures:
All Other operating segment	89			—		—			89
Cost centers	34			—		—			34
Timing	240			—		—			240
Other	(3		)	55		(45		)	7
Total capital expenditures	$	975		$	574	$	(45	)	$	1,504

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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