Segment information (Tables)

12 Months Ended

Dec. 31, 2017



Segment Information
(Millions of dollars)
Reportable Segments:
	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
2017
Construction Industries	$	19,133	$	107	$	19,240	$	400	$	3,258		$	4,838	$	228
Resource Industries	7,504		357		7,861		514		690			6,403		183
Energy & Transportation	15,964		3,418		19,382		653		2,883			7,564		527
Machinery, Energy & Transportation	$	42,601	$	3,882	$	46,483	$	1,567	$	6,831		$	18,805	$	938
Financial Products Segment	3,093		—		3,093		820		792			34,893		1,373
Total	$	45,694	$	3,882	$	49,576	$	2,387	$	7,623		$	53,698	$	2,311

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

Reconciliation of Sales and revenues:



Reconciliation of Sales and Revenues:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments				Consolidated Total
2017
Total external sales and revenues from reportable segments	$	42,601		$	3,093	$	—			$	45,694
All Other operating segments	178			—		—				178
Other	(103		)	74		(381		)	¹	(410		)
Total sales and revenues	$	42,676		$	3,167	$	(381	)		$	45,462

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


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
2017
Total profit from reportable segments	$	6,831		$	792		$	7,623
All Other operating segments	(43		)	—			(43		)
Cost centers	22			—			22
Corporate costs	(633		)	—			(633		)
Timing	(151		)	—			(151		)
Restructuring costs	(1,253		)	(3		)	(1,256		)
Methodology differences:
Inventory/cost of sales	(77		)	—			(77		)
Postretirement benefit expense	(165		)	—			(165		)
Stock-based compensation expense	(198		)	(8		)	(206		)
Financing costs	(524		)	—			(524		)
Currency	(218		)	—			(218		)
Other income/expense methodology differences	(181		)	—			(181		)
Other methodology differences	(96		)	(13		)	(109		)
Total consolidated profit before taxes	$	3,314		$	768		$	4,082

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

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
2017
Construction Industries	$	3,258		$	(719	)	$	2,539
Resource Industries	690			(276		)	414
Energy & Transportation	2,883			(115		)	2,768
Financial Products Segment	792			(3		)	789
All Other operating segments	(43		)	(39		)	(82		)
Total	$	7,580		$	(1,152	)	$	6,428

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

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
2017
Total assets from reportable segments	$	18,805		$	34,893		$	—		$	53,698
All Other operating segments	1,312			—			—			1,312
Items not included in segment assets:
Cash and short-term investments	7,381			—			—			7,381
Intercompany receivables	1,733			—			(1,733		)	—
Investment in Financial Products	4,064			—			(4,064		)	—
Deferred income taxes	2,166			—			(574		)	1,592
Goodwill and intangible assets	4,210			—			—			4,210
Property, plant and equipment – net and other assets	2,341			—			—			2,341
Operating lease methodology difference	(191		)	—			—			(191		)
Inventory methodology differences	(2,287		)	—			—			(2,287		)
Liabilities included in segment assets	9,352			—			—			9,352
Other	(399		)	(14		)	(33		)	(446		)
Total assets	$	48,487		$	34,879		$	(6,404	)	$	76,962

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

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:



Reconciliation of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
2017
Total depreciation and amortization from reportable segments	$	1,567		$	820	$	2,387
Items not included in segment depreciation and amortization:
All Other operating segments	220			—		220
Cost centers	143			—		143
Other	86			41		127
Total depreciation and amortization	$	2,016		$	861	$	2,877

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

Reconciliation of Capital expenditures:



Reconciliation of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
2017
Total capital expenditures from reportable segments	$	938		$	1,373	$	—		$	2,311
Items not included in segment capital expenditures:
All Other operating segments	134			—		—			134
Cost centers	84			—		—			84
Timing	(96		)	—		—			(96		)
Other	(144		)	80		(33		)	(97		)
Total capital expenditures	$	916		$	1,453	$	(33	)	$	2,336

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

Information about Geographic Areas

Information about Geographic Areas:



							Property, plant and equipment - net
	External sales and revenues ¹						December 31,
(Millions of dollars)	2017		2016		2015		2017		2016
Inside United States	$	18,552	$	15,956	$	19,218	$	8,126	$	8,537
Outside United States	26,910		22,581		27,793		6,029		6,785
Total	$	45,462	$	38,537	$	47,011	$	14,155	$	15,322


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