Segment Information (Tables)

9 Months Ended

Sep. 30, 2017




Reportable Segments
Three Months Ended September 30
(Millions of dollars)
	2017
	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	$	4,854	$	32	$	4,886	$	99	$	884		$	4,739	$	50
Resource Industries	1,870		86		1,956		129		226			6,596		41
Energy & Transportation	3,961		877		4,838		165		750			7,502		113
Machinery, Energy & Transportation	$	10,685	$	995	$	11,680	$	393	$	1,860		$	18,837	$	204
Financial Products Segment	774		—		774		204		185			35,415		308
Total	$	11,459	$	995	$	12,454	$	597	$	2,045		$	54,252	$	512

	2016
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit (loss)			Segment assets at December 31		Capital expenditures
Construction Industries	$	3,554	$	27	$	3,581	$	117	$	326		$	5,367	$	46
Resource Industries	1,377		69		1,446		150		(77		)	7,135		68
Energy & Transportation	3,534		629		4,163		170		572			7,791		97
Machinery, Energy & Transportation	$	8,465	$	725	$	9,190	$	437	$	821		$	20,293	$	211
Financial Products Segment	749		—		749		215		183			35,224		357
Total	$	9,214	$	725	$	9,939	$	652	$	1,004		$	55,517	$	568




Reportable Segments
Nine Months Ended September 30
(Millions of dollars)
	2017
	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	$	13,875	$	70	$	13,945	$	301	$	2,420		$	4,739	$	107
Resource Industries	5,299		254		5,553		386		481			6,596		93
Energy & Transportation	11,258		2,484		13,742		485		2,002			7,502		320
Machinery, Energy & Transportation	$	30,432	$	2,808	$	33,240	$	1,172	$	4,903		$	18,837	$	520
Financial Products Segment	2,310		—		2,310		616		559			35,415		1,018
Total	$	32,742	$	2,808	$	35,550	$	1,788	$	5,462		$	54,252	$	1,538

	2016
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit (loss)			Segment assets at December 31		Capital expenditures
Construction Industries	$	12,023	$	47	$	12,070	$	346	$	1,316		$	5,367	$	114
Resource Industries	4,283		197		4,480		458		(336		)	7,135		162
Energy & Transportation	10,562		1,919		12,481		505		1,584			7,791		340
Machinery, Energy & Transportation	$	26,868	$	2,163	$	29,031	$	1,309	$	2,564		$	20,293	$	616
Financial Products Segment	2,251		—		2,251		633		553			35,224		1,266
Total	$	29,119	$	2,163	$	31,282	$	1,942	$	3,117		$	55,517	$	1,882

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, 2017
Total external sales and revenues from reportable segments	$	10,685		$	774	$	—			$	11,459
All Other operating segments	56			—		—				56
Other	(28		)	19		(93		)	¹	(102		)
Total sales and revenues	$	10,713		$	793	$	(93	)		$	11,413

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
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, 2017
Total external sales and revenues from reportable segments	$	30,432		$	2,310	$	—			$	32,742
All Other operating segments	126			—		—				126
Other	(76		)	53		(279		)	¹	(302		)
Total sales and revenues	$	30,482		$	2,363	$	(279	)		$	32,566

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
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, 2017
Total profit from reportable segments	$	1,860		$	185		$	2,045
All Other operating segments	6			—			6
Cost centers	17			—			17
Corporate costs	(158		)	—			(158		)
Timing	(21		)	—			(21		)
Restructuring costs	(89		)	(1		)	(90		)
Methodology differences:
Inventory/cost of sales	(4		)	—			(4		)
Postretirement benefit expense	32			—			32
Stock-based compensation expense	(46		)	(2		)	(48		)
Financing costs	(116		)	—			(116		)
Currency	(37		)	—			(37		)
Other income/expense methodology differences	(71		)	—			(71		)
Other methodology differences	(31		)	(1		)	(32		)
Total consolidated profit before taxes	$	1,342		$	181		$	1,523

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



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated Total
Nine Months Ended September 30, 2017
Total profit from reportable segments	$	4,903		$	559		$	5,462
All Other operating segments	(27		)	—			(27		)
Cost centers	13			—			13
Corporate costs	(447		)	—			(447		)
Timing	(128		)	—			(128		)
Restructuring costs	(1,009		)	(2		)	(1,011		)
Methodology differences:
Inventory/cost of sales	(80		)	—			(80		)
Postretirement benefit expense	111			—			111
Stock-based compensation expense	(158		)	(7		)	(165		)
Financing costs	(369		)	—			(369		)
Currency	(195		)	—			(195		)
Other income/expense methodology differences	(105		)	—			(105		)
Other methodology differences	(91		)	3			(88		)
Total consolidated profit before taxes	$	2,418		$	553		$	2,971

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

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 (loss)			Restructuring costs			Segment profit (loss) with restructuring costs
Three Months Ended September 30, 2017
Construction Industries	$	884		$	(15	)	$	869
Resource Industries	226			(59		)	167
Energy & Transportation	750			(28		)	722
Financial Products Segment	185			—			185
All Other operating segments	6			(13		)	(7		)
Total	$	2,051		$	(115	)	$	1,936

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



Reconciliation of Restructuring costs:
(Millions of dollars)	Segment profit (loss)			Restructuring costs			Segment profit (loss) with restructuring costs
Nine Months Ended September 30, 2017
Construction Industries	$	2,420		$	(709	)	$	1,711
Resource Industries	481			(229		)	252
Energy & Transportation	2,002			(86		)	1,916
Financial Products Segment	559			(2		)	557
All Other operating segments	(27		)	(32		)	(59		)
Total	$	5,435		$	(1,058	)	$	4,377

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

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
September 30, 2017
Total assets from reportable segments	$	18,837		$	35,415		$	—		$	54,252
All Other operating segments	1,345			—			—			1,345
Items not included in segment assets:
Cash and short-term investments	8,736			—			—			8,736
Intercompany receivables	1,567			—			(1,567		)	—
Investment in Financial Products	4,435			—			(4,435		)	—
Deferred income taxes	3,595			—			(855		)	2,740
Goodwill and intangible assets	4,203			—			—			4,203
Property, plant and equipment – net and other assets	1,979			—			—			1,979
Operating lease methodology difference	(189		)	—			—			(189		)
Inventory methodology differences	(2,207		)	—			—			(2,207		)
Intercompany loan included in Financial Products' assets	—			—			(1,000		)	(1,000		)
Liabilities included in segment assets	9,153			—			—			9,153
Other	(378		)	(29		)	(45		)	(452		)
Total assets	$	51,076		$	35,386		$	(7,902	)	$	78,560

December 31, 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		)
Inventory methodology differences	(2,373		)	—			—			(2,373		)
Liabilities included in segment assets	7,400			—			—			7,400
Other	(436		)	(29		)	(56		)	(521		)
Total assets	$	45,863		$	35,195		$	(6,354	)	$	74,704

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, 2017
Total depreciation and amortization from reportable segments	$	393	$	204	$	597
Items not included in segment depreciation and amortization:
All Other operating segments	52		—		52
Cost centers	36		—		36
Other	28		10		38
Total depreciation and amortization	$	509	$	214	$	723

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



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation		Financial Products		Consolidated Total
Nine Months Ended September 30, 2017
Total depreciation and amortization from reportable segments	$	1,172	$	616	$	1,788
Items not included in segment depreciation and amortization:
All Other operating segments	162		—		162
Cost centers	106		—		106
Other	67		30		97
Total depreciation and amortization	$	1,507	$	646	$	2,153

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

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, 2017
Total capital expenditures from reportable segments	$	204		$	308	$	—		$	512
Items not included in segment capital expenditures:
All Other operating segments	26			—		—			26
Cost centers	17			—		—			17
Timing	(21		)	—		—			(21		)
Other	(31		)	19		(9		)	(21		)
Total capital expenditures	$	195		$	327	$	(9	)	$	513

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



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Nine Months Ended September 30, 2017
Total capital expenditures from reportable segments	$	520		$	1,018	$	—		$	1,538
Items not included in segment capital expenditures:
All Other operating segments	71			—		—			71
Cost centers	40			—		—			40
Timing	58			—		—			58
Other	(115		)	62		(17		)	(70		)
Total capital expenditures	$	574		$	1,080	$	(17	)	$	1,637

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