Segment Information

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Information

Segment information

A. Basis for segment information

Our Executive Office is comprised of a Chief Executive Officer (CEO), four Group Presidents, a Chief Financial Officer (CFO), a General Counsel & Corporate Secretary and a Chief Human Resources Officer. The Group Presidents and CFO are accountable for a related set of end-to-end businesses that they manage.  The General Counsel & Corporate Secretary leads the Law, Security and Public Policy Division. The Chief Human Resources Officer leads the Human Resources Organization. The CEO allocates resources and manages performance at the Group President/CFO level.  As such, the CEO serves as our Chief Operating Decision Maker, and operating segments are primarily based on the Group President/CFO reporting structure.

Three of our operating segments, Construction Industries, Resource Industries and Energy & Transportation, are led by Group Presidents.  One operating segment, Financial Products, is led by the CFO who also has responsibility for Corporate Services.  Corporate Services is a cost center primarily responsible for the performance of certain support functions globally and to provide centralized services; it does not meet the definition of an operating segment. One Group President leads one smaller operating segment that is included in the All Other operating segment.  The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment.

B. Description of segments

We have five operating segments, of which four are reportable segments.  Following is a brief description of our reportable segments and the business activities included in the All Other operating segment:

Construction Industries: A segment primarily responsible for supporting customers using machinery in infrastructure, forestry and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes asphalt pavers; backhoe loaders; compactors; cold planers; compact track and multi-terrain loaders; mini, small, medium and large track excavators; forestry excavators; feller bunchers; harvesters; knuckleboom loaders; motor graders; pipelayers; road reclaimers; skidders; skid steer loaders; telehandlers; small and medium track-type tractors; track-type loaders; utility vehicles; wheel excavators; compact, small and medium wheel loaders; and related parts and work tools. Inter-segment sales are a source of revenue for this segment.

Resource Industries:  A segment primarily responsible for supporting customers using machinery in mining, quarry and aggregates, waste and material handling applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes large track-type tractors, large mining trucks, hard rock vehicles, longwall miners, electric rope shovels, draglines, hydraulic shovels, rotary drills, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, landfill compactors, soil compactors, hard rock continuous mining systems, select work tools, machinery components, electronics and control systems and related parts. In addition to equipment, Resource Industries also develops and sells technology products and services to provide customers fleet management, equipment management analytics and autonomous machine capabilities. Resource Industries also manages areas that provide services to other parts of the company, including integrated manufacturing and research and development. Inter-segment sales are a source of revenue for this segment.

Energy & Transportation:  A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related parts across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine and rail-related businesses. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support of turbine machinery and integrated systems and solutions and turbine-related services; reciprocating engine-powered generator sets; integrated systems used in the electric power generation industry; reciprocating engines and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines supplied to the industrial industry as well as Cat machinery; the remanufacturing of Caterpillar engines and components and remanufacturing services for other companies; the business strategy, product design, product management and development, manufacturing, remanufacturing, leasing and service of diesel-electric locomotives and components and other rail-related products and services; and product support of on-highway vocational trucks for North America. Inter-segment sales are a source of revenue for this segment.

Financial Products Segment:  Provides financing alternatives to customers and dealers around the world for Caterpillar products, as well as financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage insurance, inventory protection plans, extended service coverage for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of our equipment. The segment also earns revenues from Machinery, Energy & Transportation, but the related costs are not allocated to operating segments.

All Other operating segment:  Primarily includes activities such as: business strategy, product management and development, manufacturing and sourcing of filters and fluids, undercarriage, ground-engaging tools, fluid transfer products, precision seals, rubber sealing and connecting components primarily for Cat products; parts distribution; integrated logistics solutions, distribution services responsible for dealer development and administration including a wholly owned dealer in Japan, dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts; and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience. Results for the All Other operating segment are included as a reconciling item between reportable segments and consolidated external reporting.

C. Segment measurement and reconciliations

There are several methodology differences between our segment reporting and our external reporting.  The following is a list of the more significant methodology differences:

• Machinery, Energy & Transportation segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances. Beginning in 2019, operating lease right-of-use assets are included in segment assets. In 2018, the present value of future lease payments for certain Machinery, Energy and Transportation operating leases was included in segment assets while the estimated financing component of the lease payments was excluded.  Liabilities other than accounts payable and customer advances are generally managed at the corporate level and are not included in segment operations.  Financial Products Segment assets generally include all categories of assets.

• Segment inventories and cost of sales are valued using a current cost methodology.

• Goodwill allocated to segments is amortized using a fixed amount based on a 20 year useful life.  This methodology difference only impacts segment assets; no goodwill amortization expense is included in segment profit. In addition, only a portion of goodwill for certain acquisitions made in 2011 or later has been allocated to segments.

• Currency exposures for Machinery, Energy & Transportation are generally managed at the corporate level and the effects of changes in exchange rates on results of operations within the year are not included in segment profit.  The net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting is reported as a methodology difference.

• Stock-based compensation expense is not included in segment profit.

• Postretirement benefit expenses are split; segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference.

• Machinery, Energy & Transportation segment profit is determined on a pretax basis and excludes interest expense and most other income/expense items.  Financial Products Segment profit is determined on a pretax basis and includes other income/expense items.

Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 44 to 52 for financial information regarding significant reconciling items.  Most of our reconciling items are self-explanatory given the above explanations.  For the reconciliation of profit, we have grouped the reconciling items as follows:

• Corporate costs:  These costs are related to corporate requirements primarily for compliance and legal functions for the benefit of the entire organization.

• Restructuring costs: May include costs for employee separation, long-lived asset impairments and contract terminations. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. Beginning in 2019, only certain restructuring costs are excluded from segment profit. A table, Reconciliation of Restructuring costs on page 49, has been included to illustrate how segment profit would have been impacted by the restructuring costs. See Note 20 for more information.

• Methodology differences:  See previous discussion of significant accounting differences between segment reporting and consolidated external reporting.

• Timing:   Timing differences in the recognition of costs between segment reporting and consolidated external reporting. For example, certain costs are reported on the cash basis for segment reporting and the accrual basis for consolidated external reporting.

Reportable Segments
Three Months Ended September 30
(Millions of dollars)
	2019
	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	$	5,275		$	14	$	5,289	$	80	$	940	$	5,226	$	48
Resource Industries	2,179			132		2,311		106		311		6,396		31
Energy & Transportation	4,562			890		5,452		158		1,021		8,779		150
Machinery, Energy & Transportation	12,016			1,036		13,052		344		2,272		20,401		229
Financial Products Segment	865		1	—		865		209		218		35,993		388
Total	$	12,881		$	1,036	$	13,917	$	553	$	2,490	$	56,394	$	617
	2018
	External  sales and revenues			Inter- segment  sales and revenues		Total sales and  revenues		Depreciation  and amortization		Segment  profit		Segment  assets at December 31		Capital  expenditures
Construction Industries	$	5,654		$	29	$	5,683	$	93	$	1,058	$	4,902	$	58
Resource Industries	2,538			100		2,638		115		414		6,442		49
Energy & Transportation	4,577			978		5,555		159		973		8,386		161
Machinery, Energy & Transportation	12,769			1,107		13,876		367		2,445		19,730		268
Financial Products Segment	845		1	—		845		212		201		36,002		298
Total	$	13,614		$	1,107	$	14,721	$	579	$	2,646	$	55,732	$	566

¹ Includes revenues from Machinery, Energy & Transportation of $131 million and $122 million in the three months ended September 30, 2019 and 2018, respectively.

Reportable Segments
Nine Months Ended September 30
(Millions of dollars)
	2019
	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	$	17,573		$	56	$	17,629	$	241	$	3,272	$	5,226	$	117
Resource Industries	7,537			344		7,881		315		1,368		6,396		91
Energy & Transportation	13,319			2,829		16,148		465		2,745		8,779		366
Machinery, Energy & Transportation	38,429			3,229		41,658		1,021		7,385		20,401		574
Financial Products Segment	2,588		1	—		2,588		622		622		35,993		1,093
Total	$	41,017		$	3,229	$	44,246	$	1,643	$	8,007	$	56,394	$	1,667
	2018
	External  sales and revenues			Inter- segment  sales and revenues		Total sales and  revenues		Depreciation  and amortization		Segment  profit		Segment  assets at December 31		Capital  expenditures
Construction Industries	$	17,450		$	82	$	17,532	$	272	$	3,329	$	4,902	$	162
Resource Industries	7,177			296		7,473		346		1,203		6,442		111
Energy & Transportation	13,567			2,931		16,498		474		2,859		8,386		463
Machinery, Energy & Transportation	38,194			3,309		41,503		1,092		7,391		19,730		736
Financial Products Segment	2,467		1	—		2,467		627		476		36,002		1,192
Total	$	40,661		$	3,309	$	43,970	$	1,719	$	7,867	$	55,732	$	1,928

¹ Includes revenues from Machinery, Energy & Transportation of $398 million and $345 million in the nine months ended September 30, 2019 and 2018, respectively.

For the three and nine months ending September 30, 2019 and 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
Three Months Ended September 30, 2019
Construction Industries	$	2,728		$	413		$	1,048		$	1,086		$	5,275
Resource Industries	789			349			396			645			2,179
Energy & Transportation	2,129			378			1,224			831			4,562
All Other operating segment	1			6			8			12			27
Corporate Items and Eliminations	(62		)	1			(7		)	(1		)	(69		)
Machinery, Energy & Transportation Sales	5,585			1,147			2,669			2,573			11,974
Financial Products Segment	560			79			102			124			865			1
Corporate Items and Eliminations	(43		)	(15		)	(8		)	(15		)	(81		)
Financial Products Revenues	517			64			94			109			784
Consolidated Sales and Revenues	$	6,102		$	1,211		$	2,763		$	2,682		$	12,758
Three Months Ended September 30, 2018
Construction Industries	$	2,646		$	369		$	1,109		$	1,530		$	5,654
Resource Industries	849			427			574			688			2,538
Energy & Transportation	2,309			330			1,180			758			4,577
All Other operating segment	15			—			4			18			37
Corporate Items and Eliminations	(40		)	1			(5		)	1			(43		)
Machinery, Energy & Transportation Sales	5,779			1,127			2,862			2,995			12,763
Financial Products Segment	559			68			101			117			845			1
Corporate Items and Eliminations	(62		)	(12		)	(6		)	(18		)	(98		)
Financial Products Revenues	497			56			95			99			747
Consolidated Sales and Revenues	$	6,276		$	1,183		$	2,957		$	3,094		$	13,510

¹ Includes revenues from Machinery, Energy & Transportation of $131 million and $122 million in the three months ended September 30, 2019 and 2018, respectively.

Sales and Revenues by Geographic Region
(Millions of dollars)	North  America			Latin  America			EAME			Asia/  Pacific			External Sales and Revenues
Nine Months Ended September 30, 2019
Construction Industries	$	9,206		$	1,124		$	3,162		$	4,081		$	17,573
Resource Industries	2,798			1,220			1,310			2,209			7,537
Energy & Transportation	6,577			1,035			3,416			2,291			13,319
All Other operating segment	23			7			23			45			98
Corporate Items and Eliminations	(142		)	—			(15		)	(1		)	(158		)
Machinery, Energy & Transportation Sales	18,462			3,386			7,896			8,625			38,369
Financial Products Segment	1,681			225			306			376			2,588			1
Corporate Items and Eliminations	(184		)	(37		)	(26		)	(54		)	(301		)
Financial Products Revenues	1,497			188			280			322			2,287
Consolidated Sales and Revenues	$	19,959		$	3,574		$	8,176		$	8,947		$	40,656
Nine Months Ended September 30, 2018
Construction Industries	$	8,005		$	1,105		$	3,347		$	4,993		$	17,450
Resource Industries	2,451			1,181			1,663			1,882			7,177
Energy & Transportation	7,116			897			3,425			2,129			13,567
All Other operating segment	47			1			12			55			115
Corporate Items and Eliminations	(108		)	(1		)	(8		)	—			(117		)
Machinery, Energy & Transportation Sales	17,511			3,183			8,439			9,059			38,192
Financial Products Segment	1,608			213			303			343			2,467			1
Corporate Items and Eliminations	(168		)	(36		)	(18		)	(57		)	(279		)
Financial Products Revenues	1,440			177			285			286			2,188
Consolidated Sales and Revenues	$	18,951		$	3,360		$	8,724		$	9,345		$	40,380

¹ Includes revenues from Machinery, Energy & Transportation of $398 million and $345 million in the nine months ended September 30, 2019 and 2018, respectively.

For the three and nine months ending September 30, 2019 and 2018, Energy & Transportation segment sales by end user application were as follows:

Energy & Transportation External Sales
	Three Months Ended September 30
(Millions of dollars)	2019		2018
Oil and gas	$	1,246	$	1,362
Power generation	1,123		1,102
Industrial	980		863
Transportation	1,213		1,250
Energy & Transportation External Sales	$	4,562	$	4,577
	Nine Months Ended September 30
	2019		2018
Oil and gas	$	3,682	$	4,044
Power generation	3,180		3,063
Industrial	2,841		2,738
Transportation	3,616		3,722
Energy & Transportation External Sales	$	13,319	$	13,567

Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated  Total
Three Months Ended September 30, 2019
Total profit from reportable segments	$	2,272		$	218		$	2,490
All Other operating segment	(21		)	—			(21		)
Cost centers	(9		)	—			(9		)
Corporate costs	(168		)	1			(167		)
Timing	6			—			6
Restructuring costs	(20		)	—			(20		)
Methodology differences:
Inventory/cost of sales	25			—			25
Postretirement benefit expense	19			—			19
Stock-based compensation expense	(55		)	(2		)	(57		)
Financing costs	(58		)	—			(58		)
Currency	(62		)	—			(62		)
Other income/expense methodology differences	(124		)	—			(124		)
Other methodology differences	(47		)	30			(17		)
Total consolidated profit before taxes	$	1,758		$	247		$	2,005
Three Months Ended September 30, 2018
Total profit from reportable segments	$	2,445		$	201		$	2,646
All Other operating segment	(10		)	—			(10		)
Cost centers	29			—			29
Corporate costs	(134		)	—			(134		)
Timing	(18		)	—			(18		)
Restructuring costs	(96		)	(14		)	(110		)
Methodology differences:
Inventory/cost of sales	(20		)	—			(20		)
Postretirement benefit expense	58			—			58
Stock-based compensation expense	(50		)	(2		)	(52		)
Financing costs	(56		)	—			(56		)
Currency	(96		)	—			(96		)
Other income/expense methodology differences	(88		)	—			(88		)
Other methodology differences	(19		)	5			(14		)
Total consolidated profit before taxes	$	1,945		$	190		$	2,135

Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated  Total
Nine Months Ended September 30, 2019
Total profit from reportable segments	$	7,385		$	622		$	8,007
All Other operating segment	15			—			15
Cost centers	32			—			32
Corporate costs	(487		)	(5		)	(492		)
Timing	(118		)	—			(118		)
Restructuring costs	(131		)	(31		)	(162		)
Methodology differences:
Inventory/cost of sales	24			—			24
Postretirement benefit expense	4			—			4
Stock-based compensation expense	(164		)	(6		)	(170		)
Financing costs	(173		)	—			(173		)
Currency	(110		)	—			(110		)
Other income/expense methodology differences	(374		)	—			(374		)
Other methodology differences	(71		)	35			(36		)
Total consolidated profit before taxes	$	5,832		$	615		$	6,447
Nine Months Ended September 30, 2018
Total profit from reportable segments	$	7,391		$	476		$	7,867
All Other operating segment	70			—			70
Cost centers	55			—			55
Corporate costs	(480		)	—			(480		)
Timing	(168		)	—			(168		)
Restructuring costs	(278		)	(15		)	(293		)
Methodology differences:
Inventory/cost of sales	3			—			3
Postretirement benefit expense	227			—			227
Stock-based compensation expense	(158		)	(6		)	(164		)
Financing costs	(203		)	—			(203		)
Currency	(145		)	—			(145		)
Other income/expense methodology differences	(261		)	—			(261		)
Other methodology differences	(61		)	8			(53		)
Total consolidated profit before taxes	$	5,992		$	463		$	6,455

Reconciliation of Restructuring costs:

As noted above, certain 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
Three Months Ended September 30, 2019
Construction Industries	$	940		$	—		$	940
Resource Industries	311			(11		)	300
Energy & Transportation	1,021			(7		)	1,014
Financial Products Segment	218			—			218
All Other operating segment	(21		)	(2		)	(23		)
Total	$	2,469		$	(20	)	$	2,449
Three Months Ended September 30, 2018
Construction Industries	$	1,058		$	(19	)	$	1,039
Resource Industries	414			(53		)	361
Energy & Transportation	973			(31		)	942
Financial Products Segment	201			—			201
All Other operating segment	(10		)	(4		)	(14		)
Total	$	2,636		$	(107	)	$	2,529

Reconciliation of Restructuring costs:
(Millions of dollars)	Segment profit		Restructuring costs			Segment profit with restructuring costs
Nine Months Ended September 30, 2019
Construction Industries	$	3,272	$	(54	)	$	3,218
Resource Industries	1,368		(40		)	1,328
Energy & Transportation	2,745		(59		)	2,686
Financial Products Segment	622		—			622
All Other operating segment	15		(8		)	7
Total	$	8,022	$	(161	)	$	7,861
Nine Months Ended September 30, 2018
Construction Industries	$	3,329	$	(62	)	$	3,267
Resource Industries	1,203		(149		)	1,054
Energy & Transportation	2,859		(60		)	2,799
Financial Products Segment	476		(1		)	475
All Other operating segment	70		(13		)	57
Total	$	7,937	$	(285	)	$	7,652

Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating  Adjustments			Consolidated  Total
September 30, 2019
Total assets from reportable segments	$	20,401		$	35,993	$	—		$	56,394
All Other operating segment	1,321			—		—			1,321
Items not included in segment assets:
Cash and short-term investments	6,380			—		—			6,380
Intercompany receivables	919			—		(919		)	—
Investment in Financial Products	3,968			—		(3,968		)	—
Deferred income taxes	1,927			—		(673		)	1,254
Goodwill and intangible assets	4,361			—		—			4,361
Property, plant and equipment – net and other assets	2,213			—		—			2,213
Inventory methodology differences	(2,415		)	—		—			(2,415		)
Liabilities included in segment assets	9,025			—		—			9,025
Other	(471		)	76		(145		)	(540		)
Total assets	$	47,629		$	36,069	$	(5,705	)	$	77,993
December 31, 2018
Total assets from reportable segments	$	19,730		$	36,002	$	—		$	55,732
All Other operating segment	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	1,802			—		—			1,802
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

Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated  Total
Three Months Ended September 30, 2019
Total depreciation and amortization from reportable segments	$	344		$	209	$	553
Items not included in segment depreciation and amortization:
All Other operating segment	53			—		53
Cost centers	35			—		35
Other	(4		)	8		4
Total depreciation and amortization	$	428		$	217	$	645
Three Months Ended September 30, 2018
Total depreciation and amortization from reportable segments	$	367		$	212	$	579
Items not included in segment depreciation and amortization:
All Other operating segment	55			—		55
Cost centers	33			—		33
Other	22			9		31
Total depreciation and amortization	$	477		$	221	$	698

Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation		Financial Products		Consolidated Total
Nine Months Ended September 30, 2019
Total depreciation and amortization from reportable segments	$	1,021	$	622	$	1,643
Items not included in segment depreciation and amortization:	0		0
All Other operating segment	158		—		158
Cost centers	100		—		100
Other	4		28		32
Total depreciation and amortization	$	1,283	$	650	$	1,933
Nine Months Ended September 30, 2018
Total depreciation and amortization from reportable segments	$	1,092	$	627	$	1,719
Items not included in segment depreciation and amortization:
All Other operating segment	170		—		170
Cost centers	96		—		96
Other	52		28		80
Total depreciation and amortization	$	1,410	$	655	$	2,065

Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating  Adjustments			Consolidated  Total
Three Months Ended September 30, 2019
Total capital expenditures from reportable segments	$	229		$	388	$	—		$	617
Items not included in segment capital expenditures:
All Other operating segment	34			—		—			34
Cost centers	22			—		—			22
Timing	(21		)	—		—			(21		)
Other	(26		)	41		(36		)	(21		)
Total capital expenditures	$	238		$	429	$	(36	)	$	631
Three Months Ended September 30, 2018
Total capital expenditures from reportable segments	$	268		$	298	$	—		$	566
Items not included in segment capital expenditures:
All Other operating segment	63			—		—			63
Cost centers	30			—		—			30
Timing	(5		)	—		—			(5		)
Other	(65		)	45		(33		)	(53		)
Total capital expenditures	$	291		$	343	$	(33	)	$	601

Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating  Adjustments			Consolidated  Total
Nine Months Ended September 30, 2019
Total capital expenditures from reportable segments	$	574		$	1,093	$	—		$	1,667
Items not included in segment capital expenditures:
All Other operating segment	69			—		—			69
Cost centers	71			—		—			71
Timing	108			—		—			108
Other	(92		)	72		(39		)	(59		)
Total capital expenditures	$	730		$	1,165	$	(39	)	$	1,856
Nine Months Ended September 30, 2018
Total capital expenditures from reportable segments	$	736		$	1,192	$	—		$	1,928
Items not included in segment capital expenditures:
All Other operating segment	101			—		—			101
Cost centers	70			—		—			70
Timing	152			—		—			152
Other	(214		)	165		(73		)	(122		)
Total capital expenditures	$	845		$	1,357	$	(73	)	$	2,129