XML 90 R58.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment information (Tables)
 12 Months Ended
Dec. 31, 2018
Segment Reporting Information  
Reportable Segments
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
2018
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction Industries
 
$
23,116

 
$
121

 
$
23,237

 
$
367

 
$
4,174

 
$
4,902

 
$
266

Resource Industries
 
9,888

 
382

 
10,270

 
462

 
1,603

 
6,442

 
188

Energy & Transportation
 
18,832

 
3,953

 
22,785

 
640

 
3,938

 
8,386

 
742

Machinery, Energy & Transportation
 
$
51,836

 
$
4,456

 
$
56,292

 
$
1,469

 
$
9,715

 
$
19,730

 
$
1,196

Financial Products Segment
 
3,279

1 
—

 
3,279

 
834

 
505

 
36,002

 
1,559

Total
 
$
55,115

 
$
4,456

 
$
59,571

 
$
2,303

 
$
10,220

 
$
55,732

 
$
2,755

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction Industries
 
$
19,133

 
$
107

 
$
19,240

 
$
400

 
$
3,255

 
$
4,838

 
$
228

Resource Industries
 
7,504

 
357

 
7,861

 
514

 
698

 
6,403

 
183

Energy & Transportation
 
15,964

 
3,418

 
19,382

 
653

 
2,856

 
7,564

 
527

Machinery, Energy & Transportation
 
$
42,601

 
$
3,882

 
$
46,483

 
$
1,567

 
$
6,809

 
$
18,805

 
$
938

Financial Products Segment
 
3,093

1 
—

 
3,093

 
820

 
792

 
34,893

 
1,373

Total
 
$
45,694

 
$
3,882

 
$
49,576

 
$
2,387

 
$
7,601

 
$
53,698

 
$
2,311

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction Industries
 
$
15,612

 
$
78

 
$
15,690

 
$
458

 
$
1,639

 
$
5,367

 
$
186

Resource Industries
 
5,726

 
284

 
6,010

 
607

 
(1,045
)
 
7,135

 
243

Energy & Transportation
 
14,411

 
2,540

 
16,951

 
677

 
2,187

 
7,791

 
519

Machinery, Energy & Transportation
 
$
35,749

 
$
2,902

 
$
38,651

 
$
1,742

 
$
2,781

 
$
20,293

 
$
948

Financial Products Segment
 
2,993

1 
—

 
2,993

 
849

 
702

 
35,224

 
1,638

Total
 
$
38,742

 
$
2,902

 
$
41,644

 
$
2,591

 
$
3,483

 
$
55,517

 
$
2,586

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


1 Includes revenues from Machinery, Energy & Transportation of $470 million, $384 million and $302 million for the years 2018, 2017 and 2016, respectively.
Sales and revenues by geographic region
For the year ended December 31, 2018, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:
Sales and Revenues by Geographic Region
 
 
 
 
 
 
 
 
 
 
(Millions of dollars)
 
North
 America
 
Latin
 America
 
EAME
 
Asia/
 Pacific
 
External Sales and Revenues
2018
 
 

 
 

 
 

 
 

 
 
Construction Industries
 
$
10,754

 
$
1,479

 
$
4,410

 
$
6,473

 
$
23,116

Resource Industries
 
3,357

 
1,647

 
2,217

 
2,667

 
$
9,888

Energy & Transportation
 
9,685

 
1,331

 
4,934

 
2,882

 
$
18,832

All Other operating segments
 
63

 
3

 
18

 
70

 
$
154

Corporate Items and Eliminations
 
(155
)
 
—

 
(11
)
 
(2
)
 
(168
)
Machinery, Energy & Transportation Sales
 
23,704

 
4,460

 
11,568

 
12,090

 
$
51,822

 
 
 
 
 
 
 
 
 
 
 
Financial Products Segment
 
2,153

 
281

 
387

 
458

 
3,279

Corporate Items and Eliminations
 
(234
)
 
(46
)
 
(26
)
 
(73
)
 
(379
)
Financial Products Revenues
 
1,919

 
235

 
361

 
385

 
2,900

 
 
 
 
 
 
 
 
 
 
 
Consolidated Sales and Revenues
 
$
25,623

 
$
4,695

 
$
11,929

 
$
12,475

 
$
54,722

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the year ended December 31, 2018, Energy & Transportation segment sales by end user application were as follows:
Energy & Transportation External Sales
 
(Millions of dollars)
2018
Oil and gas
$
5,763

Power generation
4,334

Industrial
3,640

Transportation
5,095

Energy & Transportation External Sales
$
18,832

 
 
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

 
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
2018
 
 

 
 

 
 

Total profit from reportable segments
 
$
9,715

 
$
505

 
$
10,220

All Other operating segments
 
23

 
—

 
23

Cost centers
 
2

 
—

 
2

Corporate costs
 
(610
)
 
—

 
(610
)
Timing
 
(257
)
 
—

 
(257
)
Restructuring costs
 
(370
)
 
(16
)
 
(386
)
Methodology differences:
 
 

 
 

 


Inventory/cost of sales
 
51

 
—

 
51

Postretirement benefit expense
 
(124
)
 
—

 
(124
)
Stock-based compensation expense
 
(190
)
 
(8
)
 
(198
)
Financing costs
 
(257
)
 
—

 
(257
)
Currency
 
(219
)
 
—

 
(219
)
Other income/expense methodology differences
 
(362
)
 
—

 
(362
)
Other methodology differences
 
(86
)
 
25

 
(61
)
Total consolidated profit before taxes
 
$
7,316

 
$
506

 
$
7,822

 
 
 
 
 
 
 
2017
 
 

 
 

 
 

Total profit from reportable segments
 
$
6,809

 
$
792

 
$
7,601

All Other operating segments
 
(44
)
 
—

 
(44
)
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
 
(141
)
 
—

 
(141
)
Stock-based compensation expense
 
(198
)
 
(8
)
 
(206
)
Financing costs
 
(524
)
 
—

 
(524
)
Currency
 
(218
)
 
—

 
(218
)
Other income/expense methodology differences
 
(181
)
 
—

 
(181
)
Other methodology differences
 
(97
)
 
(13
)
 
(110
)
Total consolidated profit before taxes
 
$
3,314

 
$
768

 
$
4,082

 
 
 
 
 
 
 
2016
 
 

 
 

 
 

Total profit from reportable segments
 
$
2,781

 
$
702

 
$
3,483

All Other operating segments
 
(85
)
 
—

 
(85
)
Cost centers
 
1

 
—

 
1

Corporate costs
 
(527
)
 
—

 
(527
)
Timing
 
40

 
—

 
40

Restructuring costs
 
(1,014
)
 
(5
)
 
(1,019
)
Methodology differences:
 
 

 
 

 
 

Inventory/cost of sales
 
—

 
—

 
—

Postretirement benefit expense
 
(729
)
 
—

 
(729
)
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

 
 
 
 
 
 
 
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
2018
 
 
 
 
 
 
Construction Industries
 
$
4,174

 
$
(58
)
 
$
4,116

Resource Industries
 
1,603

 
(191
)
 
1,412

Energy & Transportation
 
3,938

 
(84
)
 
3,854

Financial Products Segment
 
505

 
(2
)
 
503

All Other operating segments
 
23

 
(40
)
 
(17
)
Total
 
$
10,243

 
$
(375
)
 
$
9,868

 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Construction Industries
 
$
3,255

 
$
(719
)
 
$
2,536

Resource Industries
 
698

 
(276
)
 
422

Energy & Transportation
 
2,856

 
(115
)
 
2,741

Financial Products Segment
 
792

 
(3
)
 
789

All Other operating segments
 
(44
)
 
(39
)
 
(83
)
Total
 
$
7,557

 
$
(1,152
)
 
$
6,405

 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Construction Industries
 
$
1,639

 
$
(41
)
 
$
1,598

Resource Industries
 
(1,045
)
 
(540
)
 
(1,585
)
Energy & Transportation
 
2,187

 
(248
)
 
1,939

Financial Products Segment
 
702

 
(5
)
 
697

All Other operating segments
 
(85
)
 
(45
)
 
(130
)
Total
 
$
3,398

 
$
(879
)
 
$
2,519

 
 
 
 
 
 
 
Reconciliation of Assets:
Reconciliation of Assets:
 
 
 
 
 
 
 
 
(Millions of dollars)
 
Machinery,
Energy &
Transportation
 
Financial
Products
 
Consolidating
Adjustments
 
Consolidated
Total
2018
 
 

 
 

 
 

 
 

Total assets from reportable segments
 
$
19,730

 
$
36,002

 
$
—

 
$
55,732

All Other operating segments
 
1,279

 
—

 
—

 
1,279

Items not included in segment assets:
 
 

 
 

 
 

 
 

Cash and short-term investments
 
6,968

 
—

 
—

 
6,968

Intercompany receivables
 
1,633

 
—

 
(1,633
)
 
—

Investment in Financial Products
 
3,672

 
—

 
(3,672
)
 
—

Deferred income taxes
 
2,015

 
—

 
(692
)
 
1,323

Goodwill and intangible assets
 
4,279

 
—

 
—

 
4,279

Property, plant and equipment – net and other assets
 
1,998

 
—

 
—

 
1,998

Operating lease methodology difference
 
(196
)
 
—

 
—

 
(196
)
Inventory methodology differences
 
(2,503
)
 
—

 
—

 
(2,503
)
Liabilities included in segment assets
 
9,766

 
—

 
—

 
9,766

Other
 
(166
)
 
66

 
(37
)
 
(137
)
Total assets
 
$
48,475

 
$
36,068

 
$
(6,034
)
 
$
78,509

 
 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
 
Reconciliation of Depreciation and amortization:
Reconciliation of Depreciation and amortization:
 
 
 
 
 
 
(Millions of dollars)
 
Machinery,
Energy &
Transportation
 
Financial
Products
 
Consolidated
Total
2018
 
 

 
 

 
 

Total depreciation and amortization from reportable segments
 
$
1,469

 
$
834

 
$
2,303

Items not included in segment depreciation and amortization:
 
 

 
 

 
 

All Other operating segments
 
225

 
—

 
225

Cost centers
 
130

 
—

 
130

Other
 
71

 
37

 
108

Total depreciation and amortization
 
$
1,895

 
$
871

 
$
2,766

 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
Reconciliation of Capital expenditures:
Reconciliation of Capital expenditures:
 
 
 
 
 
 
 
 
(Millions of dollars)
 
Machinery,
Energy &
Transportation
 
Financial
Products
 
Consolidating
Adjustments
 
Consolidated
Total
2018
 
 

 
 

 
 

 
 

Total capital expenditures from reportable segments
 
$
1,196

 
$
1,559

 
$
—

 
$
2,755

Items not included in segment capital expenditures:
 
 

 
 

 
 

 
 

All Other operating segments
 
170

 
—

 
—

 
170

Cost centers
 
100

 
—

 
—

 
100

Timing
 
42

 
—

 
—

 
42

Other
 
(287
)
 
216

 
(80
)
 
(151
)
Total capital expenditures
 
$
1,221

 
$
1,775

 
$
(80
)
 
$
2,916

 
 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
 
 
Information about Geographic Areas
Information about Geographic Areas:
 
 
 
 
 
 
 
 
 
Property, plant and equipment - net
 
 
External sales and revenues 1
 
December 31,
(Millions of dollars)
 
2018
 
2017
 
2016
 
2018
 
2017
Inside United States
 
$
22,690

 
$
18,552

 
$
15,956

 
$
8,152

 
$
8,126

Outside United States
 
32,032


26,910


22,581


5,422


6,029

Total
 
$
54,722

 
$
45,462

 
$
38,537

 
$
13,574

 
$
14,155

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