Segment information (Tables)

12 Months Ended

Dec. 31, 2016



Segment Information
(Millions of dollars)
Reportable Segments:
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		¹	Segment profit			Segment assets at December 31		Capital expenditures
2016
Construction Industries	$	15,612	$	78	$	15,690	$	458		$	1,650		$	5,367	$	186
Resource Industries	5,726		284		6,010		607			(1,047		)	7,135		243
Energy & Transportation	14,411		2,540		16,951		677			2,222			7,791		519
Machinery, Energy & Transportation	$	35,749	$	2,902	$	38,651	$	1,742		$	2,825		$	20,293	$	948
Financial Products Segment	2,993		—		2,993		849			702			35,224		1,638
Total	$	38,742	$	2,902	$	41,644	$	2,591		$	3,527		$	55,517	$	2,586

2015
Construction Industries	$	17,797	$	109	$	17,906	$	505		$	1,865		$	6,176	$	276
Resource Industries	7,739		332		8,071		643			1			8,931		303
Energy & Transportation	18,519		2,877		21,396		690			3,390			8,769		869
Machinery, Energy & Transportation	$	44,055	$	3,318	$	47,373	$	1,838		$	5,256		$	23,876	$	1,448
Financial Products Segment	3,078		—		3,078		848			809			35,729		1,465
Total	$	47,133	$	3,318	$	50,451	$	2,686		$	6,065		$	59,605	$	2,913

2014
Construction Industries	$	20,590	$	124	$	20,714	$	564		$	2,133		$	7,342	$	447
Resource Industries	9,134		428		9,562		692			565			9,854		277
Energy & Transportation	22,306		3,386		25,692		696			4,287			8,661		669
Machinery, Energy & Transportation	$	52,030	$	3,938	$	55,968	$	1,952		$	6,985		$	25,857	$	1,393
Financial Products Segment	3,313		—		3,313		885			901			36,969		1,634
Total	$	55,343	$	3,938	$	59,281	$	2,837		$	7,886		$	62,826	$	3,027

Reconciliation of Sales and revenues:



Reconciliation of Sales and Revenues:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments				Consolidated Total
2016
Total external sales and revenues from reportable segments	$	35,749		$	2,993	$	—			$	38,742
All Other operating segments	139			—		—				139
Other	(115		)	72		(301		)	¹	(344		)
Total sales and revenues	$	35,773		$	3,065	$	(301	)		$	38,537

2015
Total external sales and revenues from reportable segments	$	44,055		$	3,078	$	—			$	47,133
All Other operating segments	203			—		—				203
Other	(111		)	101		(315		)	¹	(325		)
Total sales and revenues	$	44,147		$	3,179	$	(315	)		$	47,011

2014
Total external sales and revenues from reportable segments	$	52,030		$	3,313	$	—			$	55,343
All Other operating segments	236			—		—				236
Other	(124		)	73		(344		)	¹	(395		)
Total sales and revenues	$	52,142		$	3,386	$	(344	)		$	55,184


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
2016
Total profit from reportable segments	$	2,825		$	702		$	3,527
All Other operating segments	(77		)	—			(77		)
Cost centers	8			—			8
Corporate costs	(527		)	—			(527		)
Timing	40			—			40
Restructuring costs	(1,014		)	(5		)	(1,019		)
Methodology differences:
Inventory/cost of sales	—			—			—
Postretirement benefit expense	(788		)	—			(788		)
Stock-based compensation expense	(209		)	(9		)	(218		)
Financing costs	(517		)	—			(517		)
Currency	(22		)	—			(22		)
Other income/expense methodology differences	(225		)	—			(225		)
Other methodology differences	(47		)	4			(43		)
Total consolidated profit before taxes	$	(553	)	$	692		$	139

2015
Total profit from reportable segments	$	5,256		$	809		$	6,065
All Other operating segments	(75		)	—			(75		)
Cost centers	20			—			20
Corporate costs	(600		)	—			(600		)
Timing	95			—			95
Restructuring costs	(881		)	(17		)	(898		)
Methodology differences:
Inventory/cost of sales	(100		)	—			(100		)
Postretirement benefit expense	131			—			131
Stock-based compensation expense	(270		)	(13		)	(283		)
Financing costs	(524		)	—			(524		)
Currency	(261		)	—			(261		)
Other income/expense methodology differences	(95		)	—			(95		)
Other methodology differences	(79		)	43			(36		)
Total consolidated profit before taxes	$	2,617		$	822		$	3,439

2014
Total profit from reportable segments	$	6,985		$	901		$	7,886
All Other operating segments	19			—			19
Cost centers	(12		)	—			(12		)
Corporate costs	(674		)	—			(674		)
Timing	(245		)	—			(245		)
Restructuring costs	(432		)	—			(432		)
Methodology differences:
Inventory/cost of sales	55			—			55
Postretirement benefit expense	(2,434		)	—			(2,434		)
Stock-based compensation expense	(242		)	(12		)	(254		)
Financing costs	(502		)	—			(502		)
Currency	31			—			31
Other income/expense methodology differences	(249		)	—			(249		)
Other methodology differences	(57		)	20			(37		)
Total consolidated profit before taxes	$	2,243		$	909		$	3,152

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
2016
Construction Industries	$	1,650		$	(41	)	$	1,609
Resource Industries	(1,047		)	(540		)	(1,587		)
Energy & Transportation	2,222			(248		)	1,974
Financial Products Segment	702			(5		)	697
All Other operating segments	(77		)	(45		)	(122		)
Total	$	3,450		$	(879	)	$	2,571

2015
Construction Industries	$	1,865		$	(123	)	$	1,742
Resource Industries	1			(305		)	(304		)
Energy & Transportation	3,390			(109		)	3,281
Financial Products Segment	809			(17		)	792
All Other operating segments	(75		)	(129		)	(204		)
Total	$	5,990		$	(683	)	$	5,307

2014
Construction Industries	$	2,133		$	(314	)	$	1,819
Resource Industries	565			(72		)	493
Energy & Transportation	4,287			(33		)	4,254
Financial Products Segment	901			—			901
All Other operating segments	19			(6		)	13
Total	$	7,905		$	(425	)	$	7,480

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
2016
Total assets from reportable segments	$	20,293		$	35,224		$	—		$	55,517
All Other operating segments	1,381			—			—			1,381
Items not included in segment assets:
Cash and short-term investments	5,257			—			—			5,257
Intercompany receivables	1,713			—			(1,713		)	—
Investment in Financial Products	3,638			—			(3,638		)	—
Deferred income taxes	3,648			—			(947		)	2,701
Goodwill and intangible assets	3,883			—			—			3,883
Property, plant and equipment – net and other assets	1,645			—			—			1,645
Operating lease methodology difference	(186		)	—			—			(186		)
Liabilities included in segment assets	7,400			—			—			7,400
Inventory methodology differences	(2,373		)	—			—			(2,373		)
Other	(436		)	(29		)	(56		)	(521		)
Total assets	$	45,863		$	35,195		$	(6,354	)	$	74,704

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		)
Liabilities included in segment assets	8,017			—			—			8,017
Inventory methodology differences	(2,646		)	—			—			(2,646		)
Other	(567		)	(93		)	(77		)	(737		)
Total assets	$	48,551		$	35,636		$	(5,845	)	$	78,342

2014
Total assets from reportable segments	$	25,857		$	36,969		$	—		$	62,826
All Other operating segments	1,548			—			—			1,548
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	2,843			—			(633		)	2,210
Goodwill and intangible assets	3,492			—			—			3,492
Property, plant and equipment – net and other assets	1,766			—			—			1,766
Operating lease methodology difference	(213		)	—			—			(213		)
Liabilities included in segment assets	9,851			—			—			9,851
Inventory methodology differences	(2,697		)	—			—			(2,697		)
Other	(390		)	(143		)	(69		)	(602		)
Total assets	$	54,047		$	36,826		$	(6,375	)	$	84,498

Reconciliation of Depreciation and amortization:



Reconciliation of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
2016
Total depreciation and amortization from reportable segments	$	1,742		$	849	$	2,591
Items not included in segment depreciation and amortization:
All Other operating segments	219			—		219
Cost centers	156			—		156
Other	27			41		68
Total depreciation and amortization	$	2,144		$	890	$	3,034

2015
Total depreciation and amortization from reportable segments	$	1,838		$	848	$	2,686
Items not included in segment depreciation and amortization:
All Other operating segments	205			—		205
Cost centers	154			—		154
Other	(33		)	34		1
Total depreciation and amortization	$	2,164		$	882	$	3,046

2014
Total depreciation and amortization from reportable segments	$	1,952		$	885	$	2,837
Items not included in segment depreciation and amortization:
All Other operating segments	187			—		187
Cost centers	147			—		147
Other	(33		)	25		(8		)
Total depreciation and amortization	$	2,253		$	910	$	3,163

Reconciliation of Capital expenditures:



Reconciliation of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
2016
Total capital expenditures from reportable segments	$	948		$	1,638	$	—		$	2,586
Items not included in segment capital expenditures:
All Other operating segments	182			—		—			182
Cost centers	72			—		—			72
Timing	153			—		—			153
Other	(149		)	133		(49		)	(65		)
Total capital expenditures	$	1,206		$	1,771	$	(49	)	$	2,928

2015
Total capital expenditures from reportable segments	$	1,448		$	1,465	$	—		$	2,913
Items not included in segment capital expenditures:
All Other operating segments	169			—		—			169
Cost centers	195			—		—			195
Timing	37			—		—			37
Other	(219		)	194		(28		)	(53		)
Total capital expenditures	$	1,630		$	1,659	$	(28	)	$	3,261

2014
Total capital expenditures from reportable segments	$	1,393		$	1,634	$	—		$	3,027
Items not included in segment capital expenditures:
All Other operating segments	192			—		—			192
Cost centers	181			—		—			181
Timing	21			—		—			21
Other	(146		)	183		(79		)	(42		)
Total capital expenditures	$	1,641		$	1,817	$	(79	)	$	3,379

Information about Geographic Areas

Information about Geographic Areas:



							Property, plant and equipment - net
	External sales and revenues ¹						December 31,
(Millions of dollars)	2016		2015		2014		2016		2015
Inside United States	$	15,956	$	19,218	$	21,122	$	8,537	$	8,842
Outside United States	22,581		27,793		34,062		6,785		7,248
Total	$	38,537	$	47,011	$	55,184	$	15,322	$	16,090


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