Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Reconciliation of Sales and revenues




Reportable Segments
Three Months Ended March 31
(Millions of dollars)
	2020
	External sales and revenues			Inter- segment sales and revenues			Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at March 31		Capital expenditures
Construction Industries	$	4,312		$	(6	)	$	4,306	$	61	$	640	$	4,793	$	20
Resource Industries	1,979			105			2,084		103		304		6,278		17
Energy & Transportation	3,618			731			4,349		146		602		8,577		87
Machinery, Energy & Transportation	9,909			830			10,739		310		1,546		19,648		124
Financial Products Segment	814		¹	—			814		205		105		34,445		247
Total	$	10,723		$	830		$	11,553	$	515	$	1,651	$	54,093	$	371

	2019
	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	$	5,852		$	21		$	5,873	$	73	$	1,085	$	4,601	$	28
Resource Industries	2,647			105			2,752		112		576		6,505		23
Energy & Transportation	4,233			977			5,210		152		838		8,548		98
Machinery, Energy & Transportation	12,732			1,103			13,835		337		2,499		19,654		149
Financial Products Segment	850		¹	—			850		206		211		35,813		246
Total	$	13,582		$	1,103		$	14,685	$	543	$	2,710	$	55,467	$	395

¹ Includes revenues from Machinery, Energy & Transportation of $105 million and $131 million in the three months ended March 31, 2020 and 2019, respectively.

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 March 31, 2020
Total profit from reportable segments	$	1,546		$	105		$	1,651
All Other operating segment	7			—			7
Cost centers	32			—			32
Corporate costs	(161		)	(6		)	(167		)
Timing	(27		)	—			(27		)
Restructuring costs	(28		)	—			(28		)
Methodology differences:
Inventory/cost of sales	20			—			20
Postretirement benefit expense	403			—			403
Stock-based compensation expense	(45		)	(2		)	(47		)
Financing costs	(80		)	—			(80		)
Currency	(148		)	—			(148		)
Other income/expense methodology differences	(92		)	—			(92		)
Other methodology differences	(19		)	8			(11		)
Total consolidated profit before taxes	$	1,408		$	105		$	1,513

Three Months Ended March 31, 2019
Total profit from reportable segments	$	2,499		$	211		$	2,710
All Other operating segment	25			—			25
Cost centers	24			—			24
Corporate costs	(171		)	(5		)	(176		)
Timing	(66		)	—			(66		)
Restructuring costs	(39		)	—			(39		)
Methodology differences:
Inventory/cost of sales	7			—			7
Postretirement benefit expense	(17		)	—			(17		)
Stock-based compensation expense	(43		)	(2		)	(45		)
Financing costs	(64		)	—			(64		)
Currency	44			—			44
Other income/expense methodology differences	(129		)	—			(129		)
Other methodology differences	(12		)	2			(10		)
Total consolidated profit before taxes	$	2,058		$	206		$	2,264

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 March 31, 2020
Construction Industries	$	640	$	2		$	642
Resource Industries	304		29			333
Energy & Transportation	602		(60		)	542
Financial Products Segment	105		—			105
All Other operating segment	7		4			11
Total	$	1,658	$	(25	)	$	1,633

Three Months Ended March 31, 2019
Construction Industries	$	1,085	$	(9	)	$	1,076
Resource Industries	576		(14		)	562
Energy & Transportation	838		(11		)	827
Financial Products Segment	211		—			211
All Other operating segment	25		(5		)	20
Total	$	2,735	$	(39	)	$	2,696

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
March 31, 2020
Total assets from reportable segments	$	19,648		$	34,445	$	—		$	54,093
All Other operating segment	1,717			—		—			1,717
Items not included in segment assets:
Cash and short-term investments	6,251			—		—			6,251
Intercompany receivables	137			—		(137		)	—
Investment in Financial Products	3,999			—		(3,999		)	—
Deferred income taxes	1,975			—		(645		)	1,330
Goodwill and intangible assets	4,504			—		—			4,504
Property, plant and equipment – net and other assets	2,584			—		—			2,584
Inventory methodology differences	(2,554		)	—		—			(2,554		)
Liabilities included in segment assets	8,512			—		—			8,512
Other	(522		)	119		(140		)	(543		)
Total assets	$	46,251		$	34,564	$	(4,921	)	$	75,894

December 31, 2019
Total assets from reportable segments	$	19,654		$	35,813	$	—		$	55,467
All Other operating segment	1,728			—		—			1,728
Items not included in segment assets:
Cash and short-term investments	7,299			—		—			7,299
Intercompany receivables	758			—		(758		)	—
Investment in Financial Products	4,260			—		(4,260		)	—
Deferred income taxes	2,002			—		(708		)	1,294
Goodwill and intangible assets	4,435			—		—			4,435
Property, plant and equipment – net and other assets	2,529			—		—			2,529
Inventory methodology differences	(2,426		)	—		—			(2,426		)
Liabilities included in segment assets	8,541			—		—			8,541
Other	(343		)	134		(205		)	(414		)
Total assets	$	48,437		$	35,947	$	(5,931	)	$	78,453

Reconciliation of Depreciation and amortization:



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
Three Months Ended March 31, 2020
Total depreciation and amortization from reportable segments	$	310		$	205	$	515
Items not included in segment depreciation and amortization:
All Other operating segment	62			—		62
Cost centers	33			—		33
Other	(3		)	7		4
Total depreciation and amortization	$	402		$	212	$	614

Three Months Ended March 31, 2019
Total depreciation and amortization from reportable segments	$	337		$	206	$	543
Items not included in segment depreciation and amortization:
All Other operating segment	52			—		52
Cost centers	32			—		32
Other	3			11		14
Total depreciation and amortization	$	424		$	217	$	641

Reconciliation of Capital expenditures:



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Three Months Ended March 31, 2020
Total capital expenditures from reportable segments	$	124		$	247	$	—		$	371
Items not included in segment capital expenditures:
All Other operating segment	15			—		—			15
Cost centers	9			—		—			9
Timing	160			—		—			160
Other	(6		)	3		(4		)	(7		)
Total capital expenditures	$	302		$	250	$	(4	)	$	548

Three Months Ended March 31, 2019
Total capital expenditures from reportable segments	$	149		$	246	$	—		$	395
Items not included in segment capital expenditures:
All Other operating segment	13			—		—			13
Cost centers	20			—		—			20
Timing	134			—		—			134
Other	(19		)	5		(1		)	(15		)
Total capital expenditures	$	297		$	251	$	(1	)	$	547

Sales and revenues by geographic region

For the three months ending March 31, 2020 and 2019, Energy & Transportation segment sales by end user application were as follows:



Energy & Transportation External Sales
	Three Months Ended March 31
(Millions of dollars)	2020		2019
Oil and gas	$	861	$	1,131
Power generation	854		1,036
Industrial	801		904
Transportation	1,102		1,162
Energy & Transportation External Sales	$	3,618	$	4,233

For the three months ending March 31, 2020 and 2019, 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 March 31, 2020
Construction Industries	$	2,085		$	265		$	889		$	1,073		$	4,312
Resource Industries	696			320			395			568			1,979
Energy & Transportation	1,738			249			1,053			578			3,618
All Other operating segment	5			2			11			10			28
Corporate Items and Eliminations	(15		)	(2		)	(4		)	(2		)	(23		)
Machinery, Energy & Transportation Sales	4,509			834			2,344			2,227			9,914

Financial Products Segment	525			70			102			117			814			¹
Corporate Items and Eliminations	(54		)	(12		)	(9		)	(18		)	(93		)
Financial Products Revenues	471			58			93			99			721

Consolidated Sales and Revenues	$	4,980		$	892		$	2,437		$	2,326		$	10,635

Three Months Ended March 31, 2019
Construction Industries	$	2,965		$	319		$	1,006		$	1,562		$	5,852
Resource Industries	951			423			468			805			2,647
Energy & Transportation	2,151			332			1,032			718			4,233
All Other operating segment	8			—			11			18			37
Corporate Items and Eliminations	(41		)	1			(3		)	(2		)	(45		)
Machinery, Energy & Transportation Sales	6,034			1,075			2,514			3,101			12,724

Financial Products Segment	558			70			102			120			850			¹
Corporate Items and Eliminations	(69		)	(11		)	(9		)	(19		)	(108		)
Financial Products Revenues	489			59			93			101			742

Consolidated Sales and Revenues	$	6,523		$	1,134		$	2,607		$	3,202		$	13,466

¹ Includes revenues from Machinery, Energy & Transportation of $105 million and $131 million in the three months ended March 31, 2020 and 2019, respectively.