Segment information (Tables)

12 Months Ended

Dec. 31, 2014



Segment Information
(Millions of dollars)
Reportable Segments:
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at December 31		Capital expenditures
2014
Construction Industries	$	19,362	$	250	$	19,612	$	522	$	2,207	$	6,596	$	369
Resource Industries	8,921		585		9,506		691		501		9,568		277
Energy & Transportation	21,727		2,248		23,975		646		4,038		8,399		608
Machinery, Energy & Transportation	$	50,010	$	3,083	$	53,093	$	1,859	$	6,746	$	24,563	$	1,254
Financial Products Segment	3,313		—		3,313		885		901		37,011		1,634
Total	$	53,323	$	3,083	$	56,406	$	2,744	$	7,647	$	61,574	$	2,888

2013
Construction Industries	$	18,532	$	330	$	18,862	$	493	$	1,374	$	7,607	$	551
Resource Industries	11,805		465		12,270		698		1,586		10,389		499
Energy & Transportation	20,155		1,895		22,050		642		3,401		8,492		677
Machinery, Energy & Transportation	$	50,492	$	2,690	$	53,182	$	1,833	$	6,361	$	26,488	$	1,727
Financial Products Segment	3,224		—		3,224		789		990		36,980		1,806
Total	$	53,716	$	2,690	$	56,406	$	2,622	$	7,351	$	63,468	$	3,533

2012
Construction Industries	$	19,451	$	470	$	19,921	$	459	$	1,846	$	9,624	$	984
Resource Industries	19,715		726		20,441		649		4,285		12,466		1,078
Energy & Transportation	21,122		2,407		23,529		604		3,422		9,323		960
Machinery, Energy & Transportation	$	60,288	$	3,603	$	63,891	$	1,712	$	9,553	$	31,413	$	3,022
Financial Products Segment	3,090		—		3,090		708		763		36,563		1,660
Total	$	63,378	$	3,603	$	66,981	$	2,420	$	10,316	$	67,976	$	4,682

Reconciliation of Sales and revenues:



Reconciliation of Sales and Revenues:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments				Consolidated Total
2014
Total external sales and revenues from reportable segments	$	50,010		$	3,313	$	—			$	53,323
All Other operating segments	2,251			—		—				2,251
Other	(119		)	73		(344		)	¹	(390		)
Total sales and revenues	$	52,142		$	3,386	$	(344	)		$	55,184

2013
Total external sales and revenues from reportable segments	$	50,492		$	3,224	$	—			$	53,716
All Other operating segments	2,263			—		—				2,263
Other	(61		)	78		(340		)	¹	(323		)
Total sales and revenues	$	52,694		$	3,302	$	(340	)		$	55,656

2012
Total external sales and revenues from reportable segments	$	60,288		$	3,090	$	—			$	63,378
All Other operating segments	2,827			—		—				2,827
Other	(47		)	70		(353		)	¹	(330		)
Total sales and revenues	$	63,068		$	3,160	$	(353	)		$	65,875


¹	Elimination of Financial Products revenues from Machinery, Energy & Transportation.

Reconciliation of Consolidated profit before taxes:



Reconciliation of consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
2014
Total profit from reportable segments	$	6,746		$	901	$	7,647
All Other operating segments	850			—		850
Cost centers	38			—		38
Corporate costs	(1,584		)	—		(1,584		)
Timing	(244		)	—		(244		)
Restructuring costs	(441		)	—		(441		)
Methodology differences:
Inventory/cost of sales	55			—		55
Postretirement benefit expense	(411		)	—		(411		)
Financing costs	(502		)	—		(502		)
Equity in (profit) loss of unconsolidated affiliated companies	(8		)	—		(8		)
Currency	(52		)	—		(52		)
Other income/expense methodology differences	(249		)	—		(249		)
Other methodology differences	(24		)	8		(16		)
Total consolidated profit before taxes	$	4,174		$	909	$	5,083

2013
Total profit from reportable segments	$	6,361		$	990	$	7,351
All Other operating segments	736			—		736
Cost centers	119			—		119
Corporate costs	(1,368		)	—		(1,368		)
Timing	116			—		116
Restructuring costs	(200		)	—		(200		)
Methodology differences:
Inventory/cost of sales	(112		)	—		(112		)
Postretirement benefit expense	(685		)	—		(685		)
Financing costs	(469		)	—		(469		)
Equity in (profit) loss of unconsolidated affiliated companies	6			—		6
Currency	(110		)	—		(110		)
Other income/expense methodology differences	(238		)	—		(238		)
Other methodology differences	(48		)	30		(18		)
Total consolidated profit before taxes	$	4,108		$	1,020	$	5,128

2012
Total profit from reportable segments	$	9,553		$	763	$	10,316
All Other operating segments	994			—		994
Cost centers	11			—		11
Corporate costs	(1,502		)	—		(1,502		)
Timing	(298		)	—		(298		)
Methodology differences:
Inventory/cost of sales	43			—		43
Postretirement benefit expense	(696		)	—		(696		)
Financing costs	(474		)	—		(474		)
Equity in (profit) loss of unconsolidated affiliated companies	(14		)	—		(14		)
Currency	108			—		108
Other income/expense methodology differences	(249		)	—		(249		)
Other methodology differences	(20		)	17		(3		)
Total consolidated profit before taxes	$	7,456		$	780	$	8,236

Reconciliation of Restructuring Costs:

As noted above, restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. Had we included the amounts in the segments' results, the profit would have been as shown below:



Reconciliation of Restructuring costs:
(Millions of dollars)	Segment profit		Restructuring costs			Segment profit with restructuring costs
2014
Construction Industries	$	2,207	$	(293	)	$	1,914
Resource Industries	501		(72		)	429
Energy & Transportation	4,038		(31		)	4,007
Financial Products Segment	901		—			901
All Other operating segments	850		(36		)	814
Total	$	8,497	$	(432	)	$	8,065

2013
Construction Industries	$	1,374	$	(33	)	$	1,341
Resource Industries	1,586		(105		)	1,481
Energy & Transportation	3,401		(32		)	3,369
Financial Products Segment	990		—			990
All Other operating segments	736		(27		)	709
Total	$	8,087	$	(197	)	$	7,890

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
2014
Total assets from reportable segments	$	24,563		$	37,011		$	—		$	61,574
All Other operating segments	2,810			—			—			2,810
Items not included in segment assets:
Cash and short-term investments	6,317			—			—			6,317
Intercompany receivables	1,185			—			(1,185		)	—
Investment in Financial Products	4,488			—			(4,488		)	—
Deferred income taxes	3,627			—			(674		)	2,953
Goodwill and intangible assets	3,492			—			—			3,492
Property, plant and equipment – net and other assets	1,174			—			—			1,174
Operating lease methodology difference	(213		)	—			—			(213		)
Liabilities included in segment assets	9,837			—			—			9,837
Inventory methodology differences	(2,697		)	—			—			(2,697		)
Other	(395		)	(102		)	(69		)	(566		)
Total assets	$	54,188		$	36,909		$	(6,416	)	$	84,681

2013
Total assets from reportable segments	$	26,488		$	36,980		$	—		$	63,468
All Other operating segments	2,973			—			—			2,973
Items not included in segment assets:
Cash and short-term investments	4,597			—			—			4,597
Intercompany receivables	1,219			—			(1,219		)	—
Investment in Financial Products	4,798			—			(4,798		)	—
Deferred income taxes	2,541			—			(525		)	2,016
Goodwill and intangible assets	3,582			—			—			3,582
Property, plant and equipment – net and other assets	1,175			—			—			1,175
Operating lease methodology difference	(273		)	—			—			(273		)
Liabilities included in segment assets	10,357			—			—			10,357
Inventory methodology differences	(2,539		)	—			—			(2,539		)
Other	(214		)	(135		)	(111		)	(460		)
Total assets	$	54,704		$	36,845		$	(6,653	)	$	84,896

2012
Total assets from reportable segments	$	31,413		$	36,563		$	—		$	67,976
All Other operating segments	3,179			—			—			3,179
Items not included in segment assets:
Cash and short-term investments	3,306			—			—			3,306
Intercompany receivables	303			—			(303		)	—
Investment in Financial Products	4,433			—			(4,433		)	—
Deferred income taxes	3,926			—			(516		)	3,410
Goodwill and intangible assets	3,145			—			—			3,145
Property, plant and equipment – net and other assets	723			—			—			723
Operating lease methodology difference	(305		)	—			—			(305		)
Liabilities included in segment assets	10,900			—			—			10,900
Inventory methodology differences	(2,949		)	—			—			(2,949		)
Other	(176		)	(107		)	(132		)	(415		)
Total assets	$	57,898		$	36,456		$	(5,384	)	$	88,970

Reconciliation of Depreciation and amortization:



Reconciliation of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
2014
Total depreciation and amortization from reportable segments	$	1,859		$	885	$	2,744
Items not included in segment depreciation and amortization:
All Other operating segments	279			—		279
Cost centers	150			—		150
Other	(35		)	25		(10		)
Total depreciation and amortization	$	2,253		$	910	$	3,163

2013
Total depreciation and amortization from reportable segments	$	1,833		$	789	$	2,622
Items not included in segment depreciation and amortization:
All Other operating segments	305			—		305
Cost centers	151			—		151
Other	(16		)	25		9
Total depreciation and amortization	$	2,273		$	814	$	3,087

2012
Total depreciation and amortization from reportable segments	$	1,712		$	708	$	2,420
Items not included in segment depreciation and amortization:
All Other operating segments	313			—		313
Cost centers	96			—		96
Other	(39		)	23		(16		)
Total depreciation and amortization	$	2,082		$	731	$	2,813

Reconciliation of Capital expenditures:



Reconciliation of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
2014
Total capital expenditures from reportable segments	$	1,254		$	1,634	$	—		$	2,888
Items not included in segment capital expenditures:
All Other operating segments	331			—		—			331
Cost centers	181			—		—			181
Timing	21			—		—			21
Other	(146		)	183		(79		)	(42		)
Total capital expenditures	$	1,641		$	1,817	$	(79	)	$	3,379

2013
Total capital expenditures from reportable segments	$	1,727		$	1,806	$	—		$	3,533
Items not included in segment capital expenditures:
All Other operating segments	452			—		—			452
Cost centers	191			—		—			191
Timing	363			—		—			363
Other	(128		)	105		(70		)	(93		)
Total capital expenditures	$	2,605		$	1,911	$	(70	)	$	4,446

2012
Total capital expenditures from reportable segments	$	3,022		$	1,660	$	—		$	4,682
Items not included in segment capital expenditures:
All Other operating segments	459			—		—			459
Cost centers	201			—		—			201
Timing	(71		)	—		—			(71		)
Other	(176		)	136		(155		)	(195		)
Total capital expenditures	$	3,435		$	1,796	$	(155	)	$	5,076

Information about Geographic Areas

Information about Geographic Areas:



								Property, plant and equipment - net
	External sales and revenues ¹							December 31,
(Millions of dollars)	2014		2013		2012			2014		2013		2012
Inside United States	$	21,122	$	18,579	$	20,239		$	8,714	$	8,723	$	8,559
Outside United States	34,062		37,077		45,636		²	7,863		8,352		7,902
Total	$	55,184	$	55,656	$	65,875		$	16,577	$	17,075	$	16,461


¹	Sales of Machinery, Energy & Transportation are based on dealer or customer location. Revenues from services provided are based on where service is rendered.


²	The only country with greater than 10 percent of external sales and revenues for any of the periods presented, other than the United States, is Australia with $6,822 million as of December 31, 2012.

- 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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