Nature of Operations, Basis of Presentation and Change in Accounting Principle (Tables)

9 Months Ended

Sep. 30, 2016

Nature of Operations and Basis of Presentation [Abstract]

Schedule of Maximum Exposure to Loss from Variable Interest Entities

Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was as follows:

(Millions of dollars)	September 30, 2016		December 31, 2015
Receivables - trade and other	$	48	$	19
Receivables - finance	192		466
Long-term receivables - finance	253		62
Other assets	31		35
Guarantees	211		175
Total	$	735	$	757

Schedule of Change in Accounting Principle

Following are the changes to financial statement line items as a result of the accounting principle change for the periods presented in the accompanying unaudited consolidated financial statements:

Consolidated Statement of Results of Operations
(Dollars in millions except per share data)
	Three Months Ended September 30, 2016							Three Months Ended September 30, 2015
	As Reported		Previous Accounting Method		Effect of Accounting Change			Recast			Previously Reported			Effect of Accounting Change
Cost of goods sold	$	6,527	$	6,588	$	(61	)	$	7,872		$	7,954		$	(82	)
Selling, general and administrative expenses	$	992	$	1,025	$	(33	)	$	1,129		$	1,225		$	(96	)
Research and development expenses	$	453	$	464	$	(11	)	$	513		$	534		$	(21	)
Other operating (income) expenses	$	560	$	560	$	—		$	381		$	394		$	(13	)
Total operating costs	$	8,679	$	8,784	$	(105	)	$	10,037		$	10,249		$	(212	)
Operating profit	$	481	$	376	$	105		$	925		$	713		$	212
Other income (expense)	$	28	$	13	$	15		$	(15	)	$	(68	)	$	53
Consolidated profit before taxes	$	383	$	263	$	120		$	783		$	518		$	265
Provision (benefit) for income taxes	$	96	$	55	$	41		$	218		$	144		$	74
Profit of consolidated companies	$	287	$	208	$	79		$	565		$	374		$	191
Profit of consolidated and affiliated companies	$	283	$	204	$	79		$	562		$	371		$	191
Profit	$	283	$	204	$	79		$	559		$	368		$	191
Profit per common share	$	0.48	$	0.35	$	0.13		$	0.95		$	0.63		$	0.32
Profit per common share - diluted	$	0.48	$	0.35	$	0.13		$	0.94		$	0.62		$	0.32
	Nine Months Ended September 30, 2016							Nine Months Ended September 30, 2015
	As Reported		Previous Accounting Method		Effect of Accounting Change			Recast			Previously Reported			Effect of Accounting Change
Cost of goods sold	$	20,768	$	20,949	$	(181	)	$	25,306		$	25,559		$	(253	)
Selling, general and administrative expenses	$	3,203	$	3,305	$	(102	)	$	3,696		$	3,932		$	(236	)
Research and development expenses	$	1,429	$	1,461	$	(32	)	$	1,547		$	1,612		$	(65	)
Other operating (income) expenses	$	1,356	$	1,356	$	—		$	1,032		$	1,068		$	(36	)
Total operating costs	$	27,203	$	27,518	$	(315	)	$	32,021		$	32,611		$	(590	)
Operating profit	$	1,760	$	1,445	$	315		$	3,960		$	3,370		$	590
Other income (expense)	$	112	$	60	$	52		$	107		$	76		$	31
Consolidated profit before taxes	$	1,487	$	1,120	$	367		$	3,686		$	3,065		$	621
Provision (benefit) for income taxes	$	372	$	252	$	120		$	1,074		$	870		$	204
Profit of consolidated companies	$	1,115	$	868	$	247		$	2,612		$	2,195		$	417
Profit of consolidated and affiliated companies	$	1,108	$	861	$	247		$	2,613		$	2,196		$	417
Profit	$	1,104	$	857	$	247		$	2,606		$	2,189		$	417
Profit per common share	$	1.89	$	1.47	$	0.42		$	4.36		$	3.66		$	0.70
Profit per common share - diluted	$	1.88	$	1.46	$	0.42		$	4.30		$	3.62		$	0.68

Consolidated Statement of Comprehensive Income
(Dollars in millions)
	Three Months Ended September 30, 2016								Three Months Ended September 30, 2015
	As Reported		Previous Accounting Method			Effect of Accounting Change			Recast			Previously Reported			Effect of Accounting Change
Profit of consolidated and affiliated companies	$	283	$	204		$	79		$	562		$	371		$	191
Foreign currency translation, net of tax	$	137	$	139		$	(2	)	$	(236	)	$	(235	)	$	(1	)
Pension and other postretirement benefits:
Current year actuarial gain (loss), net of tax	$	—	$	(2	)	$	2		$	—		$	44		$	(44	)
Amortization of actuarial (gain) loss, net of tax	$	—	$	79		$	(79	)	$	—		$	108		$	(108	)
Total other comprehensive income (loss), net of tax	$	106	$	185		$	(79	)	$	(268	)	$	(115	)	$	(153	)
Comprehensive income	$	389	$	389		$	—		$	294		$	256		$	38
Comprehensive income attributable to stockholders	$	389	$	389		$	—		$	292		$	254		$	38
	Nine Months Ended September 30, 2016								Nine Months Ended September 30, 2015
	As Reported		Previous Accounting Method			Effect of Accounting Change			Recast			Previously Reported			Effect of Accounting Change
Profit of consolidated and affiliated companies	$	1,108	$	861		$	247		$	2,613		$	2,196		$	417
Foreign currency translation, net of tax	$	442	$	447		$	(5	)	$	(806	)	$	(810	)	$	4
Pension and other postretirement benefits:
Current year actuarial gain (loss), net of tax	$	—	$	(5	)	$	5		$	—		$	68		$	(68	)
Amortization of actuarial (gain) loss, net of tax	$	—	$	237		$	(237	)	$	—		$	326		$	(326	)
Total other comprehensive income (loss), net of tax	$	508	$	745		$	(237	)	$	(811	)	$	(421	)	$	(390	)
Comprehensive income	$	1,616	$	1,606		$	10		$	1,802		$	1,775		$	27
Comprehensive income attributable to stockholders	$	1,612	$	1,602		$	10		$	1,804		$	1,777		$	27

Consolidated Statement of Financial Position
(Dollars in millions)
	September 30, 2016
	As Reported			Previous Accounting Method			Effect of Accounting Change
Noncurrent deferred and refundable income taxes	$	2,579		$	2,590		$	(11	)
Liability for postemployment benefits	$	8,499		$	8,520		$	(21	)
Profit employed in the business	$	29,450		$	34,165		$	(4,715	)
Accumulated other comprehensive income (loss)	$	(1,527	)	$	(6,252	)	$	4,725
	December 31, 2015
	Recast			Previously Reported			Effect of Accounting Change
Profit employed in the business	$	29,246		$	34,208		$	(4,962	)
Accumulated other comprehensive income (loss)	$	(2,035	)	$	(6,997	)	$	4,962

Consolidated Statement of Changes in Stockholders' Equity
(Dollars in millions)
	Nine Months Ended September 30, 2016
	As Reported			Previous Accounting Method			Effect of Accounting Change
Profit of consolidated and affiliated companies	$	1,108		$	861		$	247
Foreign currency translation, net of tax	$	442		$	447		$	(5	)
Pension and other postretirement benefits, net of tax	$	90		$	322		$	(232	)
Balance at September 30, 2016	$	15,715		$	15,705		$	10
	Nine Months Ended September 30, 2015
	Recast			Previously Reported			Effect of Accounting Change
Profit of consolidated and affiliated companies	$	2,613		$	2,196		$	417
Foreign currency translation, net of tax	$	(806	)	$	(810	)	$	4
Pension and other postretirement benefits, net of tax	$	(25	)	$	369		$	(394	)
Balance at September 30, 2015	$	15,995		$	15,968		$	27

Consolidated Statement of Cash Flow
(Millions of dollars)
	Nine Months Ended September 30, 2016
Cash flow from operating activities:	As Reported			Previous Accounting Method			Effect of Accounting Change
Profit of consolidated and affiliated companies	$	1,108		$	861		$	247
Adjustments for non-cash items: Other	$	640		$	692		$	(52	)
Other assets – net	$	(141	)	$	(261	)	$	120
Other liabilities – net	$	(291	)	$	24		$	(315	)
	Nine Months Ended September 30, 2015
Cash flow from operating activities:	Recast			Previously Reported			Effect of Accounting Change
Profit of consolidated and affiliated companies	$	2,613		$	2,196		$	417
Adjustments for non-cash items: Other	$	323		$	354		$	(31	)
Other assets – net	$	96		$	(108	)	$	204
Other liabilities – net	$	(236	)	$	354		$	(590	)