Postemployment benefit plans (Tables)

12 Months Ended

Dec. 31, 2011

Postemployment benefit plans

Change in benefit obligation and assumptions used to determine benefit obligation

	U.S. Pension Benefits									Non-U.S. Pension Benefits									Other Postretirement  Benefits
(Millions of dollars)	2011			2010			2009			2011			2010			2009			2011			2010			2009
Change in benefit obligation:
Benefit obligation, beginning of year	$	13,024		$	12,064		$	11,493		$	3,867		$	3,542		$	3,219		$	5,184		$	4,537		$	5,017
Service cost	158			210			176			115			92			86			84			68			70
Interest cost	651			652			688			182			162			146			253			245			280
Plan amendments	1			4			—			(24		)	35			—			(121		)	—			(549		)
Actuarial losses (gains)	1,635			1,140			380			312			153			45			306			602			(58		)
Foreign currency exchange rates	—			—			—			(32		)	34			322			(19		)	14			29
Participant contributions	—			—			—			9			9			10			44			45			51
Benefits paid - gross	(823		)	(820		)	(796		)	(187		)	(168		)	(212		)	(388		)	(379		)	(390		)
Less: federal subsidy on benefits paid	—			—			—			—			—			—			14			15			21
Curtailments, settlements and special termination benefits	(3		)	(235		)	123			(83		)	(52		)	(74		)	(6		)	—			66
Acquisitions / other1	139			9			—			140			60			—			30			37			—
Benefit obligation, end of year	$	14,782		$	13,024		$	12,064		$	4,299		$	3,867		$	3,542		$	5,381		$	5,184		$	4,537
Accumulated benefit obligation, end of year	$	14,055		$	12,558		$	11,357		$	3,744		$	3,504		$	3,082
Weighted-average assumptions used to determine benefit obligation:
Discount rate2	4.3		%	5.1		%	5.7		%	4.3		%	4.6		%	4.8		%	4.3		%	5.0		%	5.6		%
Rate of compensation increase2	4.5		%	4.5		%	4.5		%	3.9		%	4.2		%	4.2		%	4.4		%	4.4		%	4.4		%

1  See Note 23 regarding the acquisitions of Electro-Motive Diesel in 2010 and Bucyrus International in 2011.

2  End of year rates are used to determine net periodic cost for the subsequent year. See Note 12E.

Effects of one-percentage point change in the assumed health care cost trend rates

(Millions of dollars)	One-percentage- point increase		One-percentage- point decrease
Effect on 2011 service and interest cost components of other postretirement benefit cost	$	28	$	(23	)
Effect on accumulated postretirement benefit obligation	$	328	$	(277	)

Change in plan assets

	U.S. Pension Benefits									Non-U.S. Pension Benefits									Other Postretirement  Benefits
(Millions of dollars)	2011			2010			2009			2011			2010			2009			2011			2010			2009
Change in plan assets:
Fair value of plan assets, beginning of year	$	10,760		$	9,029		$	6,745		$	2,880		$	2,797		$	2,175		$	996		$	1,063		$	1,042
Actual return on plan assets	(270		)	1,628			2,194			(83		)	193			390			(45		)	129			266
Foreign currency exchange rates	—			—			—			(1		)	17			243			—			—			—
Company contributions1	212			919			886			234			58			263			207			138			94
Participant contributions	—			—			—			9			9			10			44			45			51
Benefits paid	(823		)	(820		)	(796		)	(187		)	(168		)	(212		)	(388		)	(379		)	(390		)
Settlements and special termination benefits	—			—			—			(41		)	(51		)	(72		)	—			—			—
Acquisitions / other2	118			4			—			7			25			—			—			—			—
Fair value of plan assets, end of year	$	9,997		$	10,760		$	9,029		$	2,818		$	2,880		$	2,797		$	814		$	996		$	1,063

1  Includes $650 million of Caterpillar stock contributed to U.S. pension plans in 2009.

2  See Note 23 regarding the acquisitions of Electro-Motive Diesel in 2010 and Bucyrus International in 2011.

Fair value of pension and other postretirement benefit plan assets, by category

	December 31, 2011
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets,at Fair Value
U.S. Pension
Equity securities:
U.S. equities	$	4,314	$	—	$	77	$	4,391
Non-U.S. equities	2,366		—		—		2,366
Fixed income securities:
U.S. corporate bonds	—		1,178		35		1,213
Non-U.S. corporate bonds	—		143		6		149
U.S. government bonds	—		462		7		469
U.S. governmental agency mortgage-backed securities	—		891		3		894
Non-U.S. government bonds	—		31		—		31
Real estate	—		—		8		8
Cash, short-term instruments and other	48		428		—		476
Total U.S. pension assets	$	6,728	$	3,133	$	136	$	9,997

	December 31, 2010
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
U.S. Pension
Equity securities:
U.S. equities	$	4,975	$	1	$	46	$	5,022
Non-U.S. equities	2,884		—		4		2,888
Fixed income securities:
U.S. corporate bonds	—		1,412		38		1,450
Non-U.S. corporate bonds	—		92		1		93
U.S. government bonds	—		299		5		304
U.S. governmental agency mortgage-backed securities	—		634		4		638
Non-U.S. government bonds	—		22		—		22
Real estate	—		—		10		10
Cash, short-term instruments and other	70		263		—		333
Total U.S. pension assets	$	7,929	$	2,723	$	108	$	10,760

	December 31, 2009
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets,at Fair Value
U.S. Pension
Equity securities:
U.S. equities	$	4,634	$	2	$	17	$	4,653
Non-U.S. equities	1,803		—		34		1,837
Fixed income securities:
U.S. corporate bonds	—		1,179		56		1,235
Non-U.S. corporate bonds	—		70		1		71
U.S. government bonds	—		323		—		323
U.S. governmental agency mortgage-backed securities	—		562		—		562
Non-U.S. government bonds	—		9		—		9
Real estate	—		—		10		10
Cash, short-term instruments and other	113		216		—		329
Total U.S. pension assets	$	6,550	$	2,361	$	118	$	9,029

	December 31, 2011
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets,at Fair Value
Non-U.S. Pension
Equity securities:
U.S. equities	$	356	$	1	$	—	$	357
Non-U.S. equities	822		84		—		906
Global equities1	198		40		—		238
Fixed income securities:
U.S. corporate bonds	—		16		4		20
Non-U.S. corporate bonds	—		395		5		400
U.S. government bonds	—		3		—		3
Non-U.S. government bonds	—		200		—		200
Global fixed income1	—		363		—		363
Real estate	—		100		97		197
Cash, short-term instruments and other2	109		25		—		134
Total non-U.S. pension assets	$	1,485	$	1,227	$	106	$	2,818

	December 31, 2010
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets,at Fair Value
Non-U.S. Pension
Equity securities:
U.S. equities	$	359	$	—	$	—	$	359
Non-U.S. equities	916		90		1		1,007
Global equities1	153		37		—		190
Fixed income securities:
U.S. corporate bonds	—		18		2		20
Non-U.S. corporate bonds	—		374		5		379
U.S. government bonds	—		5		—		5
Non-U.S. government bonds	—		163		1		164
Global fixed income1	—		374		—		374
Real estate	—		89		90		179
Cash, short-term instruments and other2	61		107		35		203
Total non-U.S. pension assets	$	1,489	$	1,257	$	134	$	2,880

	December 31, 2009
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets,at Fair Value
Non-U.S. Pension
Equity securities:
U.S. equities	$	330	$	—	$	—	$	330
Non-U.S. equities	863		84		5		952
Global equities1	144		14		—		158
Fixed income securities:
U.S. corporate bonds	—		22		1		23
Non-U.S. corporate bonds	—		355		11		366
U.S. government bonds	—		1		—		1
Non-U.S. government bonds	—		156		2		158
Global fixed income1	—		361		—		361
Real estate	—		80		71		151
Cash, short-term instruments and other2	107		139		51		297
Total non-U.S. pension assets	$	1,444	$	1,212	$	141	$	2,797

1  Includes funds that invest in both U.S. and non-U.S. securities.

2  Includes funds that invest in multiple asset classes, hedge funds and other.

	December 31, 2011
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets,at Fair Value
Other Postretirement Benefits
Equity securities:
U.S. equities	$	410	$	—	$	—	$	410
Non-U.S. equities	191		—		—		191
Fixed income securities:
U.S. corporate bonds	—		67		—		67
Non-U.S. corporate bonds	—		8		—		8
U.S. government bonds	—		21		—		21
U.S. governmental agency mortgage-backed securities	—		47		—		47
Non-U.S. government bonds	—		1		—		1
Cash, short-term instruments and other	4		65		—		69
Total other postretirement benefit assets	$	605	$	209	$	—	$	814

	December 31, 2010
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets,at Fair Value
Other Postretirement Benefits
Equity securities:
U.S. equities	$	512	$	—	$	—	$	512
Non-U.S. equities	289		—		—		289
Fixed income securities:
U.S. corporate bonds	—		79		—		79
Non-U.S. corporate bonds	—		6		—		6
U.S. government bonds	—		14		—		14
U.S. governmental agency mortgage-backed securities	—		43		—		43
Non-U.S. government bonds	—		1		—		1
Cash, short-term instruments and other	19		33		—		52
Total other postretirement benefit assets	$	820	$	176	$	—	$	996

	December 31, 2009
(Millions of dollars)	Level 1		Level 2		Level 3		Total Assets, at Fair Value
Other Postretirement Benefits
Equity securities:
U.S. equities	$	531	$	—	$	—	$	531
Non-U.S. equities	273		6		—		279
Fixed income securities:
U.S. corporate bonds	—		95		—		95
Non-U.S. corporate bonds	—		8		—		8
U.S. government bonds	—		24		—		24
U.S. governmental agency mortgage-backed securities	—		54		—		54
Non-U.S. government bonds	—		1		—		1
Cash, short-term instruments and other	19		52		—		71
Total other postretirement benefit assets	$	823	$	240	$	—	$	1,063

Roll forward of assets measured at fair value using level 3 inputs

(Millions of dollars)	Equities			Fixed Income			Real Estate			Other
U.S. Pension
Balance at December 31, 2008	$	16		$	73		$	9		$	—
Unrealized gains (losses)	3			34			1			—
Realized gains (losses)	—			(2		)	—			—
Purchases, issuances and settlements	31			(12		)	—			—
Transfers in and/or out of Level 3	1			(36		)	—			—
Balance at December 31, 2009	$	51		$	57		$	10		$	—
Unrealized gains (losses)	11			1			—			—
Realized gains (losses)	(1		)	3			—			—
Purchases, issuances and settlements	32			(9		)	—			—
Transfers in and/or out of Level 3	(43		)	(4		)	—			—
Balance at December 31, 2010	$	50		$	48		$	10		$	—
Unrealized gains (losses)	(4		)	(2		)	(2		)	—
Realized gains (losses)	1			—			—			—
Purchases, issuances and settlements	30			17			—			—
Transfers in and/or out of Level 3	—			(12		)	—			—
Balance at December 31, 2011	$	77		$	51		$	8		$	—
Non-U.S. Pension
Balance at December 31, 2008	$	—		$	5		$	61		$	67
Unrealized gains (losses)	2			1			10			63
Realized gains (losses)	—			—			—			(41		)
Purchases, issuances and settlements	3			6			—			(38		)
Transfers in and/or out of Level 3	—			2			—			—
Balance at December 31, 2009	$	5		$	14		$	71		$	51
Unrealized gains (losses)	(1		)	—			7			1
Realized gains (losses)	1			—			—			5
Purchases, issuances and settlements	(2		)	(3		)	12			(22		)
Transfers in and/or out of Level 3	(2		)	(3		)	—			—
Balance at December 31, 2010	$	1		$	8		$	90		$	35
Unrealized gains (losses)	—			1			7			—
Realized gains (losses)	—			—			—			3
Purchases, issuances and settlements	(1		)	—			—			(38		)
Transfers in and/or out of Level 3	—			—			—			—
Balance at December 31, 2011	$	—		$	9		$	97		$	—

Common stock of Caterpillar Inc. included in Equity Securities within plan assets

	U.S. Pension Benefits1						Non-U.S. Pension Benefits						Other Postretirement Benefits
(Millions of dollars)	2011		2010		20092		2011		2010		2009		2011		2010		2009
Caterpillar Inc. common stock	$	653	$	779	$	1,016	$	1	$	2	$	1	$	1	$	3	$	1

1  Amounts represent 7% of total plan assets for 2011 and 2010 and 11% of total plan assets for 2009.

2  Includes $650 million of Caterpillar stock contributed to U.S. pension plans in 2009.

Defined benefit plan funded status, components of net amount recognized in financial position and accumulated other comprehensive income

	U.S. Pension Benefits									Non-U.S. Pension Benefits									Other Postretirement Benefits
(Millions of dollars)	2011			2010			2009			2011			2010			2009			2011			2010			2009
End of Year
Fair value of plan assets	$	9,997		$	10,760		$	9,029		$	2,818		$	2,880		$	2,797		$	814		$	996		$	1,063
Benefit obligations	14,782			13,024			12,064			4,299			3,867			3,542			5,381			5,184			4,537
Over (under) funded status recognized in financial position	$	(4,785	)	$	(2,264	)	$	(3,035	)	$	(1,481	)	$	(987	)	$	(745	)	$	(4,567	)	$	(4,188	)	$	(3,474	)
Components of net amount recognized in financial position:
Other assets (non-current asset)	$	—		$	—		$	—		$	3		$	4		$	22		$	—		$	—		$	—
Accrued wages, salaries and employee benefits (current liability)	(21		)	(18		)	(17		)	(26		)	(18		)	(18		)	(171		)	(171		)	(113		)
Liability for postemployment benefits (non-current liability)	(4,764		)	(2,246		)	(3,018		)	(1,458		)	(973		)	(749		)	(4,396		)	(4,017		)	(3,361		)
Net liability recognized	$	(4,785	)	$	(2,264	)	$	(3,035	)	$	(1,481	)	$	(987	)	$	(745	)	$	(4,567	)	$	(4,188	)	$	(3,474	)
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Net actuarial loss (gain)	$	7,044		$	4,795		$	5,132		$	1,712		$	1,273		$	1,200		$	1,495		$	1,195		$	659
Prior service cost (credit)	63			83			132			15			43			8			(188		)	(122		)	(177		)
Transition obligation (asset)	—			—			—			—			—			—			5			7			9
Total	$	7,107		$	4,878		$	5,264		$	1,727		$	1,316		$	1,208		$	1,312		$	1,080		$	491

Estimated amounts that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost (pre-tax) in the next fiscal year

(Millions of dollars)	U.S.  Pension Benefits		Non-U.S. Pension Benefits		Other Postretirement Benefits
Actuarial loss (gain)	$	496	$	94	$	101
Prior service cost (credit)	20		1		(68		)
Transition obligation (asset)	—		—		2
Total	$	516	$	95	$	35

Schedule of pension plans with projected benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits

	U.S. Pension Benefits at Year-end									Non-U.S. Pension Benefits at Year-end
(Millions of dollars)	2011			2010			2009			2011			2010			2009
Projected benefit obligation	$	(14,782	)	$	(13,024	)	$	(12,064	)	$	(4,293	)	$	(3,846	)	$	(3,350	)
Accumulated benefit obligation	$	(14,055	)	$	(12,558	)	$	(11,357	)	$	(3,738	)	$	(3,485	)	$	(2,933	)
Fair value of plan assets	$	9,997		$	10,760		$	9,029		$	2,809		$	2,855		$	2,584

Schedule of pension plans with accumulated benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits

	U.S. Pension Benefits at Year-end									Non-U.S. Pension Benefits at Year-end
(Millions of dollars)	2011			2010			2009			2011			2010			2009
Projected benefit obligation	$	(14,782	)	$	(13,024	)	$	(12,064	)	$	(4,112	)	$	(3,452	)	$	(1,594	)
Accumulated benefit obligation	$	(14,055	)	$	(12,558	)	$	(11,357	)	$	(3,600	)	$	(3,179	)	$	(1,503	)
Fair value of plan assets	$	9,997		$	10,760		$	9,029		$	2,661		$	2,514		$	1,145

Information about the expected cash flow for the pension and other postretirement benefit plans

(Millions of dollars)	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Postretirement Benefits
Employer contributions:
2012 (expected)	$	570	$	430	$	200
Expected benefit payments:
2012	$	840	$	190	$	370
2013	850		180		380
2014	860		190		390
2015	870		200		390
2016	880		200		400
2017-2021	4,540		1,000		2,040
Total	$	8,840	$	1,960	$	3,970

Expected Medicare Part D subsidy receipts

(Millions of dollars)	2012		2013		2014		2015		2016		2017-2021		Total
Other postretirement benefits	$	15	$	15	$	20	$	20	$	20	$	110	$	200

Components of net periodic benefit cost, other changes in plan assets and benefits obligations recognized in other comprehensive income and weighted-average assumptions used to determine net cost

	U.S. Pension Benefits									Non-U.S. Pension Benefits									Other Postretirement Benefits
(Millions of dollars)	2011			2010			2009			2011			2010			2009			2011			2010			2009
Components of net periodic benefit cost:
Service cost	$	158		$	210		$	176		$	115		$	92		$	86		$	84		$	68		$	70
Interest cost	651			652			688			182			162			146			253			245			280
Expected return on plan assets	(798		)	(773		)	(777		)	(210		)	(192		)	(181		)	(70		)	(93		)	(111		)
Curtailments, settlements and special termination benefits1	—			28			133			19			22			36			—			—			56
Amortization of:
Transition obligation (asset)	—			—			—			—			—			—			2			2			2
Prior service cost (credit)2	20			25			29			3			1			1			(55		)	(55		)	(40		)
Net actuarial loss (gain)	451			385			248			74			65			35			108			33			20
Total cost included in operating profit	$	482		$	527		$	497		$	183		$	150		$	123		$	322		$	200		$	277
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year actuarial loss (gain)	$	2,700		$	47		$	(1,037	)	$	526		$	136		$	(88	)	$	408		$	570		$	(200	)
Amortization of actuarial (loss) gain	(451		)	(385		)	(248		)	(72		)	(62		)	(32		)	(108		)	(33		)	(20		)
Current year prior service cost (credit)	—			(24		)	(10		)	(25		)	35			(2		)	(121		)	—			(537		)
Amortization of prior service (cost) credit	(20		)	(25		)	(29		)	(3		)	(1		)	(1		)	55			55			40
Amortization of transition (obligation) asset	—			—			—			—			—			—			(2		)	(2		)	(2		)
Total recognized in other comprehensive income	2,229			(387		)	(1,324		)	426			108			(123		)	232			590			(719		)
Total recognized in net periodic cost and other comprehensive income	$	2,711		$	140		$	(827	)	$	609		$	258		$	—		$	554		$	790		$	(442	)
Weighted-average assumptions used to determine net cost:
Discount rate	5.1		%	5.4		%	6.3		%	4.6		%	4.8		%	4.7		%	5.0		%	5.6		%	6.3		%
Expected return on plan assets3	8.5		%	8.5		%	8.5		%	7.1		%	7.0		%	6.6		%	8.5		%	8.5		%	8.5		%
Rate of compensation increase	4.5		%	4.5		%	4.5		%	4.1		%	4.2		%	3.8		%	4.4		%	4.4		%	4.4		%
1 Curtailments, settlements and special termination benefits were recognized in Other operating (income) expenses in Statement 1.
2 Prior service costs for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period to the full retirement eligibility date of employees expected to receive benefits from the plan amendment.  For other postretirement benefit plans in which all or almost all of the plan’s participants are fully eligible for benefits under the plan, prior service costs are amortized using the straight-line method over the remaining life expectancy of those participants.
3 The weighted-average rates for 2012 are 8.0% and 7.1% for U.S. and non-U.S. plans, respectively.

Company costs related to U.S. and non-U.S. defined contribution plans

(Millions of dollars)	2011		2010		2009
U.S. plans	$	219	$	231	$	206
Non-U.S. plans	54		39		29
	$	273	$	270	$	235

Summary of long-term liability for postemployment benefit plans

	December 31,
(Millions of dollars)	2011		2010		2009
Pensions:
U.S. pensions	$	4,764	$	2,246	$	3,018
Non-U.S. pensions	1,458		973		749
Total pensions	6,222		3,219		3,767
Postretirement benefits other than pensions	4,396		4,017		3,361
Other postemployment benefits	73		69		63
Defined contribution	265		279		229
	$	10,956	$	7,584	$	7,420