Operations and summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2016

Variable Interest Entity, Not Primary Beneficiary, Disclosures [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:

	December 31,
(Millions of dollars)	2016		2015
Receivables - trade and other	$	55	$	19
Receivables - finance	174		466
Long-term receivables - finance	246		62
Investments in unconsolidated affiliated companies	31		35
Guarantees	210		175
Total	$	716	$	757

Schedule of Changes in Accounting Principles

Following are the impacts to financial statement line items as a result of the change in accounting principle for the periods

presented in the accompanying consolidated financial statements:

Consolidated Statement of Results of Operations for the Years Ended December 31
(Dollars in millions except per share data)	2016
	As Reported			Previous Accounting Method		Effect of Accounting Change
Cost of goods sold	$	28,309		$	28,074	$	235
Selling, general and administrative expenses	$	4,686		$	4,441	$	245
Research and development expenses	$	1,951		$	1,868	$	83
Total operating costs	$	38,039		$	37,476	$	563
Operating profit	$	498		$	1,061	$	(563	)
Other income (expense)	$	146		$	50	$	96
Consolidated profit before taxes	$	139		$	606	$	(467	)
Provision (benefit) for income taxes	$	192		$	364	$	(172	)
Profit (loss) of consolidated companies	$	(53	)	$	242	$	(295	)
Profit (loss) of consolidated and affiliated companies	$	(59	)	$	236	$	(295	)
Profit (loss)	$	(67	)	$	228	$	(295	)
Profit (loss) per common share	$	(0.11	)	$	0.39	$	(0.50	)
Profit (loss) per common share - diluted	$	(0.11	)	$	0.39	$	(0.50	)
	2015
	Recast			Previously Reported		Effect of Accounting Change
Cost of goods sold	$	33,546		$	33,742	$	(196	)
Selling, general and administrative expenses	$	4,951		$	5,199	$	(248	)
Research and development expenses	$	2,119		$	2,165	$	(46	)
Other operating (income) expenses	$	2,023		$	2,062	$	(39	)
Total operating costs	$	43,226		$	43,755	$	(529	)
Operating profit	$	3,785		$	3,256	$	529
Other income (expense)	$	161		$	106	$	55
Consolidated profit before taxes	$	3,439		$	2,855	$	584
Provision (benefit) for income taxes	$	916		$	742	$	174
Profit (loss) of consolidated companies	$	2,523		$	2,113	$	410
Profit (loss) of consolidated and affiliated companies	$	2,523		$	2,113	$	410
Profit (loss)	$	2,512		$	2,102	$	410
Profit (loss) per common share	$	4.23		$	3.54	$	0.69
Profit (loss) per common share - diluted	$	4.18		$	3.50	$	0.68
	2014
	Recast			Previously Reported		Effect of Accounting Change
Cost of goods sold	$	40,718		$	39,767	$	951
Selling, general and administrative expenses	$	6,529		$	5,697	$	832
Research and development expenses	$	2,380		$	2,135	$	245
Other operating (income) expenses	$	1,619		$	1,633	$	(14	)
Total operating costs	$	51,870		$	49,856	$	2,014
Operating profit	$	3,314		$	5,328	$	(2,014	)
Other income (expense)	$	322		$	239	$	83
Consolidated profit before taxes	$	3,152		$	5,083	$	(1,931	)
Provision (benefit) for income taxes	$	692		$	1,380	$	(688	)
Profit (loss) of consolidated companies	$	2,460		$	3,703	$	(1,243	)
Profit (loss) of consolidated and affiliated companies	$	2,468		$	3,711	$	(1,243	)
Profit (loss)	$	2,452		$	3,695	$	(1,243	)
Profit (loss) per common share	$	3.97		$	5.99	$	(2.02	)
Profit (loss) per common share - diluted	$	3.90		$	5.88	$	(1.98	)

Consolidated Statement of Comprehensive Income for the Years Ended December 31
(Dollars in millions)	2016
	As Reported			Previous Accounting Method			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	(59	)	$	236		$	(295	)
Foreign currency translation, net of tax	$	—		$	—		$	—
Pension and other postretirement benefits:
Current year actuarial gain (loss), net of tax	$	—		$	(621	)	$	621
Amortization of actuarial (gain) loss, net of tax	$	—		$	326		$	(326	)
Total other comprehensive income (loss), net of tax	$	(4	)	$	(299	)	$	295
	2015
	Recast			Previously Reported			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	2,523		$	2,113		$	410
Foreign currency translation, net of tax	$	(973	)	$	(977	)	$	4
Pension and other postretirement benefits:
Current year actuarial gain (loss), net of tax	$	—		$	(10	)	$	10
Amortization of actuarial (gain) loss, net of tax	$	—		$	424		$	(424	)
Total other comprehensive income (loss), net of tax	$	(988	)	$	(578	)	$	(410	)
	2014
	Recast			Previously Reported			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	2,468		$	3,711		$	(1,243	)
Foreign currency translation, net of tax	$	(1,155	)	$	(1,164	)	$	9
Pension and other postretirement benefits:
Current year actuarial gain (loss), net of tax	$	—		$	(1,578	)	$	1,578
Amortization of actuarial (gain) loss, net of tax	$	—		$	344		$	(344	)
Total other comprehensive income (loss), net of tax	$	(1,290	)	$	(2,533	)	$	1,243

Consolidated Statement of Financial Position at December 31
(Dollars in millions)	2016									2015
	As Reported			Previous Accounting Method			Effect of Accounting Change			Recast			Previously Reported			Effect of Accounting Change
Profit employed in the business	$	27,377		$	32,634		$	(5,257	)	$	29,246		$	34,208		$	(4,962	)
Accumulated other comprehensive income (loss)	$	(2,039	)	$	(7,296	)	$	5,257		$	(2,035	)	$	(6,997	)	$	4,962

Consolidated Statement of Changes in Stockholders' Equity for the Years Ended December 31
(Dollars in millions)	2016
	As Reported			Previous Accounting Method			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	(59	)	$	236		$	(295	)
Pension and other postretirement benefits, net of tax	$	83		$	(212	)	$	295
	2015
	Recast			Previously Reported			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	2,523		$	2,113		$	410
Foreign currency translation, net of tax	$	(973	)	$	(977	)	$	4
Pension and other postretirement benefits, net of tax	$	(38	)	$	376		$	(414	)
	2014
	Recast			Previously Reported			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	2,468		$	3,711		$	(1,243	)
Foreign currency translation, net of tax	$	(1,155	)	$	(1,164	)	$	9
Pension and other postretirement benefits, net of tax	$	(21	)	$	(1,255	)	$	1,234

Consolidated Statement of Cash Flow for the Years Ended December 31
(Millions of dollars)	2016
Cash flow from operating activities:	As Reported			Previous Accounting Method			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	(59	)	$	236		$	(295	)
Adjustments for non-cash items:
Actuarial (gain) loss on pension and postretirement benefits	$	985		$	—		$	985
Provision (benefit) for deferred income taxes	$	(431	)	$	—		$	(431	)
Other	$	856		$	952		$	(96	)
Changes in assets and liabilities, net of acquisitions and divestitures:
Other assets – net	$	224		$	46		$	178
Other liabilities – net	$	(388	)	$	(47	)	$	(341	)
	2015
Cash flow from operating activities:	Recast			Previously Reported			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	2,523		$	2,113		$	410
Adjustments for non-cash items:
Actuarial (gain) loss on pension and postretirement benefits	$	179		$	—		$	179
Provision (benefit) for deferred income taxes	$	(307	)	$	—		$	(307	)
Other	$	453		$	508		$	(55	)
Changes in assets and liabilities, net of acquisitions and divestitures:
Other assets – net	$	143		$	(220	)	$	363
Other liabilities – net	$	(146	)	$	444		$	(590	)
	2014
Cash flow from operating activities:	Recast			Previously Reported			Effect of Accounting Change
Profit (loss) of consolidated and affiliated companies	$	2,468		$	3,711		$	(1,243	)
Adjustments for non-cash items:
Actuarial (gain) loss on pension and postretirement benefits	$	2,624		$	—		$	2,624
Provision (benefit) for deferred income taxes	$	(954	)	$	—		$	(954	)
Other	$	470		$	553		$	(83	)
Changes in assets and liabilities, net of acquisitions and divestitures:
Other assets – net	$	(139	)	$	(300	)	$	161
Other liabilities – net	$	(359	)	$	146		$	(505	)

The above tables include changes resulting from reclassifications between financial statement line items.