Segment Information (Tables)

9 Months Ended

Sep. 30, 2016




Reportable Segments
Three Months Ended September 30
(Millions of dollars)
	2016
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit			Segment assets at September 30		Capital expenditures
Construction Industries	$	3,554	$	27	$	3,581	$	117	$	326		$	5,521	$	46
Resource Industries	1,377		69		1,446		150		(77		)	8,017		68
Energy & Transportation	3,534		629		4,163		170		572			8,118		97
Machinery, Energy & Transportation	$	8,465	$	725	$	9,190	$	437	$	821		$	21,656	$	211
Financial Products Segment	749		—		749		215		183			36,330		357
Total	$	9,214	$	725	$	9,939	$	652	$	1,004		$	57,986	$	568

	2015
	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
Construction Industries	$	4,075	$	17	$	4,092	$	139	$	354		$	6,176	$	62
Resource Industries	1,842		88		1,930		144		(42		)	8,931		73
Energy & Transportation	4,352		702		5,054		172		683			8,769		179
Machinery, Energy & Transportation	$	10,269	$	807	$	11,076	$	455	$	995		$	23,876	$	314
Financial Products Segment	752		—		752		210		207			35,729		359
Total	$	11,021	$	807	$	11,828	$	665	$	1,202		$	59,605	$	673




Reportable Segments
Nine Months Ended September 30
(Millions of dollars)
	2016
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit			Segment assets at September 30		Capital expenditures
Construction Industries	$	12,023	$	47	$	12,070	$	346	$	1,316		$	5,521	$	114
Resource Industries	4,283		197		4,480		458		(336		)	8,017		162
Energy & Transportation	10,562		1,919		12,481		505		1,584			8,118		340
Machinery, Energy & Transportation	$	26,868	$	2,163	$	29,031	$	1,309	$	2,564		$	21,656	$	616
Financial Products Segment	2,251		—		2,251		633		553			36,330		1,266
Total	$	29,119	$	2,163	$	31,282	$	1,942	$	3,117		$	57,986	$	1,882

	2015
	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
Construction Industries	$	13,892	$	66	$	13,958	$	419	$	1,687		$	6,176	$	156
Resource Industries	5,861		250		6,111		441		81			8,931		152
Energy & Transportation	13,975		2,262		16,237		510		2,649			8,769		565
Machinery, Energy & Transportation	$	33,728	$	2,578	$	36,306	$	1,370	$	4,417		$	23,876	$	873
Financial Products Segment	2,332		—		2,332		638		618			35,729		995
Total	$	36,060	$	2,578	$	38,638	$	2,008	$	5,035		$	59,605	$	1,868

Reconciliation of Sales and revenues:



Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments				Consolidated Total
Three Months Ended September 30, 2016
Total external sales and revenues from reportable segments	$	8,465		$	749	$	—			$	9,214
All Other operating segments	28			—		—				28
Other	(30		)	19		(71		)	¹	(82		)
Total sales and revenues	$	8,463		$	768	$	(71	)		$	9,160

Three Months Ended September 30, 2015
Total external sales and revenues from reportable segments	$	10,269		$	752	$	—			$	11,021
All Other operating segments	39			—		—				39
Other	(23		)	20		(95		)	¹	(98		)
Total sales and revenues	$	10,285		$	772	$	(95	)		$	10,962
¹ Elimination of Financial Products revenues from Machinery, Energy & Transportation.



Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments				Consolidated Total
Nine Months Ended September 30, 2016
Total external sales and revenues from reportable segments	$	26,868		$	2,251	$	—			$	29,119
All Other operating segments	107			—		—				107
Other	(87		)	54		(230		)	¹	(263		)
Total sales and revenues	$	26,888		$	2,305	$	(230	)		$	28,963

Nine Months Ended September 30, 2015
Total external sales and revenues from reportable segments	$	33,728		$	2,332	$	—			$	36,060
All Other operating segments	166			—		—				166
Other	(65		)	58		(238		)	¹	(245		)
Total sales and revenues	$	33,829		$	2,390	$	(238	)		$	35,981
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
Three Months Ended September 30, 2016
Total profit from reportable segments	$	821		$	183		$	1,004
All Other operating segments	(22		)	—			(22		)
Cost centers	29			—			29
Corporate costs	(121		)	—			(121		)
Timing	12			—			12
Restructuring costs	(323		)	(1		)	(324		)
Methodology differences:
Inventory/cost of sales	19			—			19
Postretirement benefit expense	37			—			37
Stock-based compensation expense	(40		)	(1		)	(41		)
Financing costs	(129		)	—			(129		)
Currency	(10		)	—			(10		)
Other income/expense methodology differences	(60		)	—			(60		)
Other methodology differences	(11		)	—			(11		)
Total consolidated profit before taxes	$	202		$	181		$	383

Three Months Ended September 30, 2015
Total profit from reportable segments	$	995		$	207		$	1,202
All Other operating segments	(11		)	—			(11		)
Cost centers	23			—			23
Corporate costs	(136		)	—			(136		)
Timing	37			—			37
Restructuring costs	(98		)	—			(98		)
Methodology differences:							—
Inventory/cost of sales	(22		)	—			(22		)
Postretirement benefit expense	131			—			131
Stock-based compensation expense	(46		)	(2		)	(48		)
Financing costs	(128		)	—			(128		)
Currency	(104		)	—			(104		)
Other income/expense methodology differences	(51		)	—			(51		)
Other methodology differences	(13		)	1			(12		)
Total consolidated profit before taxes	$	577		$	206		$	783



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated Total
Nine Months Ended September 30, 2016
Total profit from reportable segments	$	2,564		$	553		$	3,117
All Other operating segments	(43		)	—			(43		)
Cost centers	68			—			68
Corporate costs	(429		)	—			(429		)
Timing	53			—			53
Restructuring costs	(619		)	(5		)	(624		)
Methodology differences:
Inventory/cost of sales	—			—			—
Postretirement benefit expense	148			—			148
Stock-based compensation expense	(180		)	(7		)	(187		)
Financing costs	(396		)	—			(396		)
Currency	(22		)	—			(22		)
Other income/expense methodology differences	(170		)	—			(170		)
Other methodology differences	(34		)	6			(28		)
Total consolidated profit before taxes	$	940		$	547		$	1,487

Nine Months Ended September 30, 2015
Total profit from reportable segments	$	4,417		$	618		$	5,035
All Other operating segments	(36		)	—			(36		)
Cost centers	31			—			31
Corporate costs	(451		)	—			(451		)
Timing	15			—			15
Restructuring costs	(219		)	—			(219		)
Methodology differences:
Inventory/cost of sales	(30		)	—			(30		)
Postretirement benefit expense	282			—			282
Stock-based compensation expense	(230		)	(10		)	(240		)
Financing costs	(394		)	—			(394		)
Currency	(226		)	—			(226		)
Other income/expense methodology differences	(48		)	—			(48		)
Other methodology differences	(45		)	12			(33		)
Total consolidated profit before taxes	$	3,066		$	620		$	3,686

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
Three Months Ended September 30, 2016
Construction Industries	$	326		$	(9	)	$	317
Resource Industries	(77		)	(254		)	(331		)
Energy & Transportation	572			(39		)	533
Financial Products Segment	183			(1		)	182
All Other operating segments	(22		)	(15		)	(37		)
Total	$	982		$	(318	)	$	664

Three Months Ended September 30, 2015
Construction Industries	$	354		$	(28	)	$	326
Resource Industries	(42		)	(39		)	(81		)
Energy & Transportation	683			(10		)	673
Financial Products Segment	207			—			207
All Other operating segments	(11		)	(9		)	(20		)
Total	$	1,191		$	(86	)	$	1,105



Reconciliation of Restructuring costs:
(Millions of dollars)	Segment profit			Restructuring costs			Segment profit with restructuring costs
Nine Months Ended September 30, 2016
Construction Industries	$	1,316		$	(34	)	$	1,282
Resource Industries	(336		)	(348		)	(684		)
Energy & Transportation	1,584			(194		)	1,390
Financial Products Segment	553			(5		)	548
All Other operating segments	(43		)	(29		)	(72		)
Total	$	3,074		$	(610	)	$	2,464

Nine Months Ended September 30, 2015
Construction Industries	$	1,687		$	(83	)	$	1,604
Resource Industries	81			(83		)	(2		)
Energy & Transportation	2,649			(24		)	2,625
Financial Products Segment	618			—			618
All Other operating segments	(36		)	(12		)	(48		)
Total	$	4,999		$	(202	)	$	4,797

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
September 30, 2016
Total assets from reportable segments	$	21,656		$	36,330		$	—		$	57,986
All Other operating segments	1,368			—			—			1,368
Items not included in segment assets:
Cash and short-term investments	4,894			—			—			4,894
Intercompany receivables	1,877			—			(1,877		)	—
Investment in Financial Products	4,367			—			(4,367		)	—
Deferred income taxes	3,311			—			(821		)	2,490
Goodwill and intangible assets	4,055			—			—			4,055
Property, plant and equipment – net and other assets	2,138			—			—			2,138
Operating lease methodology difference	(187		)	—			—			(187		)
Inventory methodology differences	(2,243		)	—			—			(2,243		)
Intercompany loan included in Financial Products' assets	—			—			(1,000		)	(1,000		)
Liabilities included in segment assets	7,394			—			—			7,394
Other	(380		)	(50		)	(63		)	(493		)
Total assets	$	48,250		$	36,280		$	(8,128	)	$	76,402

December 31, 2015
Total assets from reportable segments	$	23,876		$	35,729		$	—		$	59,605
All Other operating segments	1,405			—			—			1,405
Items not included in segment assets:
Cash and short-term investments	5,340			—			—			5,340
Intercompany receivables	1,087			—			(1,087		)	—
Investment in Financial Products	3,888			—			(3,888		)	—
Deferred income taxes	3,208			—			(793		)	2,415
Goodwill and intangible assets	3,571			—			—			3,571
Property, plant and equipment – net and other assets	1,585			—			—			1,585
Operating lease methodology difference	(213		)	—			—			(213		)
Inventory methodology differences	(2,646		)	—			—			(2,646		)
Liabilities included in segment assets	8,017			—			—			8,017
Other	(567		)	(93		)	(77		)	(737		)
Total assets	$	48,551		$	35,636		$	(5,845	)	$	78,342

Reconciliation of Depreciation and amortization:



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
Three Months Ended September 30, 2016
Total depreciation and amortization from reportable segments	$	437		$	215	$	652
Items not included in segment depreciation and amortization:
All Other operating segments	53			—		53
Cost centers	39			—		39
Other	6			11		17
Total depreciation and amortization	$	535		$	226	$	761

Three Months Ended September 30, 2015
Total depreciation and amortization from reportable segments	$	455		$	210	$	665
Items not included in segment depreciation and amortization:
All Other operating segments	51			—		51
Cost centers	39			—		39
Other	(7		)	10		3
Total depreciation and amortization	$	538		$	220	$	758



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
Nine Months Ended September 30, 2016
Total depreciation and amortization from reportable segments	$	1,309		$	633	$	1,942
Items not included in segment depreciation and amortization:
All Other operating segments	158			—		158
Cost centers	117			—		117
Other	7			31		38
Total depreciation and amortization	$	1,591		$	664	$	2,255

Nine Months Ended September 30, 2015
Total depreciation and amortization from reportable segments	$	1,370		$	638	$	2,008
Items not included in segment depreciation and amortization:
All Other operating segments	151			—		151
Cost centers	114			—		114
Other	(27		)	26		(1		)
Total depreciation and amortization	$	1,608		$	664	$	2,272

Reconciliation of Capital expenditures:



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Three Months Ended September 30, 2016
Total capital expenditures from reportable segments	$	211		$	357	$	—		$	568
Items not included in segment capital expenditures:
All Other operating segments	35			—		—			35
Cost centers	20			—		—			20
Timing	4			—		—			4
Other	(30		)	22		(24		)	(32		)
Total capital expenditures	$	240		$	379	$	(24	)	$	595

Three Months Ended September 30, 2015
Total capital expenditures from reportable segments	$	314		$	359	$	—		$	673
Items not included in segment capital expenditures:
All Other operating segments	33			—		—			33
Cost centers	52			—		—			52
Timing	(35		)	—		—			(35		)
Other	(28		)	35		(4		)	3
Total capital expenditures	$	336		$	394	$	(4	)	$	726



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Nine Months Ended September 30, 2016
Total capital expenditures from reportable segments	$	616		$	1,266	$	—		$	1,882
Items not included in segment capital expenditures:
All Other operating segments	102			—		—			102
Cost centers	48			—		—			48
Timing	221			—		—			221
Other	(129		)	117		(41		)	(53		)
Total capital expenditures	$	858		$	1,383	$	(41	)	$	2,200

Nine Months Ended September 30, 2015
Total capital expenditures from reportable segments	$	873		$	995	$	—		$	1,868
Items not included in segment capital expenditures:
All Other operating segments	86			—		—			86
Cost centers	98			—		—			98
Timing	199			—		—			199
Other	(161		)	130		(23		)	(54		)
Total capital expenditures	$	1,095		$	1,125	$	(23	)	$	2,197